Reading Football Club owner Dai Yongge, via holding company Renhe Sports Management, lost a case in Commercial Court this morning to release security against the club from Redwood Holdings, namely Rob Couhig.
Mr Couhig, former owner of Wycombe Wanderers, had been in a long legal dispute with Mr Yongge over the handling over the perspective purchase of the club last year.
Renhe Sports Management requested a day in court in order to release security against Bearwood Training Park and the Select Car Leasing Stadium as they claimed in documents seen at court that it was 'unlawful' and prevents a sale to another potential buyer.
While Justice Jacobs acknowledged the 'pressing need for a solution to be found’, he had 'no difficulty in deciding that the balance of convenience does not favour granting the injunction' and that there was 'no real basis for granting injunction.'
One possible resolution floated was that security, in form of proceeds of any sale, (to extent of claim) be put in escrow to allow a sale- something the club has denied would be possible without release of the security in the past.
In the case, a letter from the EFL in February was used as evidence, stating that the businessman has until April 4 to rid himself of the club, facing disqualification.
If he does not sell the club in the coming weeks, the club could face extinction from the English Football League.
The EFL had pushed for this over 12 months ago but were overruled by an independent panel.
The EFL have been approached for comment, having not publicised this information previously.
Another date is set for June in which Mr Yongge and Mr Couhig will battle over the breach of exclusivity and a possible £24m loss of potential profits, as being claimed by Mr Couhig.
Reading Football Club, Mr Couhig and the EFL are yet to comment.
