Taxman challenges Leeds United CVA
Potential auction flagged up after taxman lodges eleventh-hour objection
The taxman has lodged an appeal against the CVA proposal put forward by Leeds
United and its administrators KPMG, it emerged this afternoon.
Despite improving its offer to creditors from a penny in the pound to 8p in
the pound, HM Revenue & Customs has lodged an appeal against the proposals,
only an hour before the deadline for complaints to be filed.
The taxman lodged its complaint at 3pm.
PKF business recovery partner Philip Long told Accountancy Age he
thought the CVA should now be dropped and the business exposed to a quick
auction, which would give creditors the best return.
Some advisers had earlier questioned the strength of the original CVA
proposal, complaining that the business would be sold to someone who was not
necessarily the highest bidder.
Leeds has stated that it ‘remained positive despite the disappointing news’
and will carry on with business as normal.
More to follow.