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
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