BusinessBusiness RecoveryLeeds United clears its debts

Leeds United clears its debts

Leeds United back on track, as the last of its debts are cleared

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.

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