Cambridge United has called upon former directors to fulfil their Directors Guarantees regarding rent payments due on the Abbey Stadium.

The ground was sold to Bideawhile 445 Ltd in November 2004 with the club taking up a 50-year lease, which included guarantees for the rent payments from six past and present directors. As reported in today's Cambridge Evening News, the club has now contacted the guarantors to ask for their promised financial assistance.

Director and major shareholder Paul Barry commented, "Part of our lease with Bideawhile included guarantors on the rent in the event the club could not pay. With the rent of £200,000 per year and additional running losses, the club is in the situation where we need additional financial help."

Barry, who along with fellow director Dr Johnny Hon made a fresh investment last summer, continued, "Cambridge United has never had a period in the last 15 years where we have run at close to break-even, before transfers.

"With our current poor form, the resultant lack of gates and commercial income, a change of manager in September, and other factors like a large energy bill and a lack of additional income from previous player transfers, our financial situation is grim, even with current directors committing funds to the club.

"As a director, it is part of our fiduciary duty to do the best for our shareholders, and I believe we have the obligation to call upon the guarantors in the lease, the understanding of which was put into the public arena in November of 2004.

"The club has written to the guarantors twice seeking their financial commitment. We have also informed our landlord of the situation. We have received a response from four of the guarantors, representing 94.5% of the guarantee, that they believe their guarantee is not to Cambridge United, but to Bideawhile."

Barry added, "The Board has a lot of respect for the vast time and work the past directors of the club have committed. The club needs the financial help that the guarantors have committed to, and we hope we can resolve this situation amicably."

We shall be providing more details to our shareholders at the Annual General Meeting on Monday.

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