RFU issue London Welsh statement (From Richmond and Twickenham Times)

RFU issue London Welsh statement

1:16pm Monday 25th January 2010 in

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The Rugby Football Union has issued the following statement relating to the financial affairs of London Welsh RFC:

The RFU has been in regular dialogue with the directors of London Welsh since the New Year about the ownership of the club by Red Dragon Rugby Limited and the issues arising from that including recent personal bankruptcy court proceedings against Mr Hollinshead, owner of Red Dragon Rugby Limited.

Given those challenges we fully support the decision to rescind the share transfer agreement and revert to the previous ownership structure while they search for new investors.

The club's directors have gone through the proper channels to notify the RFU about the change in shareholders.

It is important to note that the club is still trading and the team still playing in the Championship so there is no action for the RFU to take regarding the club.

Francis Baron, RFU CEO, said, "We share London Welsh's concerns over some of the documents presented to the club, the administrators, and to the RFU, during the negotiations over the transfer of the club's shares to Red Dragon Rugby Limited.

"It is clear that all parties relied on what appeared to be genuine documents in their due diligence processes.

The RFU will co-operate fully with the club's lawyer's further investigations.

"In addition, the RFU has already commenced its own investigation into the authenticity of documents supplied by Red Dragon Rugby Limited and whether Red Dragon Rugby Limited and its officers have brought the game and the RFU into disrepute under Rule 5.12. We will confirm more details on this soon."