CASH-strapped Exeter City's vendetta against the Nationwide Conference is hitting Hereford United in the pocket.

The Devon club are pursuing the league in the High Court to get a 12 point deduction overturned and a rule imposed by the FA and Conference that all 'football debts' must be paid in full.

The Grecians incurred the 12 point penalty for entering a Company Voluntary Arrange-ment but after initially accepting to meet the obligation to football creditors have now backtracked after a legal challenge to the CVA from the Inland Revenue who would receive just 10 percent of what they are owed.

Each Conference club has already been forced to shell out £2,000 and member clubs have been told to put aside a further £25,000 to cover further actions.

Bulls director Joan Fennessy admitted the club could do without being dragged into the mess. "All the Conference clubs are but we've got no option but to stand up to Exeter" she said.

"Exeter have got nothing to lose because they won't be able to pay the costs incurred anyway.

"I don't think they should be allowed to go to the High Court."

Meanwhile, Conference chief executive John Moules confirmed he is having crunch talks with the football authorities in a bid to resolve their expensive legal battle with Exeter.

Moules moved swiftly after the Conference had their application to settle the dispute by an independent arbitration expert chucked out during a special six-hour hearing at Bristol County Court last Friday.

He has since launched emergency talks with his counterparts at the Football Association and Football League over the next step forward.