More details have emerged regarding the ongoing court battle between Renhe Sports Management and Redwood Holdings in relation to purchasing Reading Football Club.

American Rob Couhig, who came close to acquiring the Royals last summer, hit owner Dai Yongge with a claim worth over £12.3m before Christmas for alleged breaches of exclusivity and loss of potential earnings.

However, Renhe Sports Management, the holding company through which Mr Yongge owns the football club, have now submitted their own counter case.

READ MORE: Full details emerge of Rob Couhig court case

In a Defence and Counterclaim document, which has been seen by the Reading Chronicle, Mr Yongge is accusing Redwood Holdings and Mr Couhig of ‘unlawful’ behaviour due refusing to release the security, which they had over Bearwood and shares of the club in exchange for exclusivity periods throughout 2024.

Mr Couhig was paid back in full but is claiming that Mr Yongge had no intention of selling to the former Wycombe Wanderers chief and is accused of circulating an investment booklet to other potential purchasers.

“The behaviour of Renhe throughout the time it was in exclusivity with Redwood is (in retrospect) indicative that it was simply using the monies provided by Redwood to tread water while it sought offers,” stated the response from Redwood to questions posed by Renhe Sports Management.

Those acting on behalf of Renhe claim: “Mr Dai decided not to sell to Mr Couhig because, following concerns about continual changes to the terms originally set out in the LOI, a proposed final version of the SP A simply did not reflect what he considered had been agreed. He considered that Mr Couhig was not acting honourably, being intent on securing repeated price 'chips' and he no longer had faith in Mr Couhig to guarantee the healthy and stable future development of the Club.

“It is common ground that the loans have been repaid in full, but the Claimant is nevertheless refusing to release its security. Such refusal has been relied upon -and indeed used coercively- as paii of a renewed attempt for the Defendant to submit to a sale to the Claimant.”

Renhe Sports Management go on to deny that the investment proposal document was produced by the club or holding company. Mr Couhig claims it was given to an unnamed broker and intended for circulation.

Mr Yongge’s party also refute the claim that Redwood Holdings would have enjoyed a ‘200 per cent return on investment’, which is the basis of their ‘loss of earnings’ claim.

The report states: “It smacks of a claim being issued for its own sake, for the collateral benefits which might be available from the pressure which the mere existence of litigation can bring to bear; such collateral benefits would be improper ones, and it is an abuse to issue a claim without being able to identify that claim properly or plead it properly.”

In their counter claim, Renhe Sports Management say, “The Claimant's ongoing refusal to release Security is unlawful and in breach of contract. Such breach is causing the Defendant to incur loss and, in all likelihood, further consequential loss which has not yet fully crystallised - the loss of chance to sell the Club. Exploration of a sale of the Club to a substitute purchaser after negotiations with the Claimant broke down has incurred legal and other costs which have been wasted by reason of the Claimant's refusal to release.”

READ MORE: Reading FC owner hits Rob Couhig with legal action

Signed by Mr Yongge’s sister, Dai Xui Li, Renhe Sports Management will ‘file a Schedule of Loss as soon as it is able to do so, or as ordered, and seek permission to rely upon expert evidence to substantiate its loss if appropriate.’

Reading Football Club and Mr Couhig were approached for comment.

Mr Couhig said he still 'prefers completion to litigation' and is 'confident' in his position.

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