LONDON (Reuters) - FA Cup semi-finalists Cardiff City faced a claim for payment of 31 million pounds on Wednesday on the first day of a High Court hearing of a case which the club has said could force them into administration.
The Championship (second division) club, who beat Premier League Middlesbrough to reach the last four last weekend, are being sued by financial backers Langston over the repayment of an outstanding loan of around 24 million pounds.
Switzerland-based investment company Langston has asked judge Michael Briggs to grant summary judgment, without the need for a full trial, on its claim for immediate payment of the sum it says is due on the 2004 loan.
Cardiff have said they would have to consider going into administration should they be ordered to pay immediately.
Administration would trigger an automatic 10-point deduction by the Football League that would send them from 18th place to the relegation zone.
The Welsh club, who won the FA Cup in 1927, say they do not have to repay the bulk of their loan until 2016.
Arguing that having a full trial would waste court time and legal costs, Langston's counsel Michael Driscoll told the court: "It is clearly desirable that the claim is dealt with summarily."
He said this was only possible if the judge decided there was no dispute of fact in the case which he was unable to resolve fairly without a full trial.
"The club says that nothing is to be repaid at this time, and the question is whether there is enough in what the club says to justify this case going to trial," Driscoll said.
"The claimant says that there is nothing in what the club has said."
The hearing is scheduled to last two days, after which the judge is expected to reserve his decision on whether summary judgment can be granted in Langston's favour, and give a ruling at a later date, probably in writing.
If he rejects Langston's application, the corporation's claim for repayment will go to a full trial at a later date.
(Editing by Sonia Oxley)



