Leeds United CVA approval squeezes through
Creditors' vote goes down to the wire as Bates-led consortium get the go-ahead to snap up the troubled club after KPMG ballot recount
Leeds United Football Club creditors have signed-off a
Company
Voluntary Arrangement that will allow the club to live on.
The move needed the approval of 75% of voters, but could not be endorsed on
Friday after a marathon six hours of talks. Eventually, the ballot was ruled too
close to call after a vote of 75.02%.
KPMG announced this
morning that the move, which will lead to the club being sold to a consortium
headed by Ken Bates, could now go-ahead after the recount had shown that 75.2%
of creditors had backed the plan.
The Big Four Firm said: ‘Following the Leeds United creditors’ meetings that
have taken place on Friday 1 June and Monday 4 June, the administrators of Leeds
United Association Football Club Limited can confirm the result of the vote on
the CVA proposal to sell the Club to a newly formed company, Leeds United
Football Club Ltd.’
KPMG partner Richard Fleming, appointed as joint administrator, said: ‘I am
satisfied that in voting to accept this CVA proposal the creditors have approved
a solution that allows the club to plan ahead for next season; reduces
uncertainty for all those with an interest in Leeds United; provides some return
for creditors; and avoids liquidation.’
The creditors will receive an initial dividend of a penny in the pound with a
‘substantial additional dividend’ to follow if the Club regains Premiership
status within five seasons.
Despite the victory for the consortium, its designs could still be derailed
because the proposal still needs the ratification of the Football League and
Football Association.
Further reading:
Ken Bates: Leeds could be doomed without
CVA
Leeds score deliberate own goal
FA looks to tackle 11th hour ad
ministrations
