Leeds get another week
Debt-ridden football club Leeds United have staved off the threat of administration for at least another week after principle finance creditors yesterday agreed to extend the club's standstill period.
The club now has until 26 January to find a solution to its financial troubles, the club has debts of over £80m, but this deadline could be extended for a further two weeks to 6 February if the club achieves certain financial and other covenants.
The club is still pushing to have the standstill period extended until the end of the season so that potential bidders know whether the club will retain its Premier League status. But creditors are only likely to agree to this if the club raises around £3-5m in working capital.
Several consortia, including one led by Royal Mail chairman Allan Leighton, are believed to be in talks with the board regarding a possible cash investment. If this fails the club would undoubtedly have to sell at least one of the team’s star players, such as Alan Smith, Mark Viduka or Paul Robinson.
Leeds United are currently bottom of the Premier League.