Prince Harry's former charity Sentebale pauses its defamation claim against him amid fears a defeat could force it to fold

Sentebale's income has dropped by a fifth since it launched its High Court claim in April, and its net assets have shrunk from £567,000 to £250,000. General reserves are £10,000 in deficit, and event income has collapsed from £715,000 to just £70,000. The Duke of Sussex has signalled he is ready to fight at trial. A loss could leave the charity paying both sides' costs plus potential damages.

Trustees accuse Harry of a 'co-ordinated adverse media campaign' that caused 'reputational harm'.

Chair Dr Sophie Chandauka branded the charity a 'vanity project' for the Duke.

A filing extension means the particulars of the claim cannot yet be made public.