Leeds United clears its debts

The administrator for Leeds United has repaid the last of the beleaguered club's creditors– including the club's milkman –.putting behind it one of the most spectacular financial collapses in the history of English football.

Ernst & Young partner Garry Wilson, the club's administrator, yesterday settled with the final creditors still owed money by the club's former owners, The Guardian reports.

Using of £500,000 secured at the time of the administration, E&Y has repaid 30 to 40 small creditors included catering companies, former employees, consultants and the club's milkman.

With all the debts cleared, a remaining £100,000 has now been returned to the club. Ken Bates, the former Chelsea chairman who now runs Leeds United is likely to give the money to manager Kevin Blackwell to strengthen his squad.

A £30,000 pay-off has also been made to former chairman, Professor John McKenzie – and amount considerably less than was specified in his contract.

A report by Brendan Guilfoyle of the P&A Partnership (who acted as co-administrator) into the conduct of the directors of the club has been submitted to the DTI.

The department could take action against former chairman Peter Ridsdale, former deputy chairman Allan Leighton and McKenzie if it is decided that they are no longer fit to be directors as a result of their actions during their time at the club.