A spokesman for the club said a number of ‘cost saving proposals’ including a cut in players’ salaries together with reaching an agreement with the club’s main creditors were necessary before the issue of new equity could be approved.
The club’s shares were suspending on the Alternative Investment Market last week; at the same time a 20% reduction in wages was mooted.
Today, Leicester City said in a statement: ‘The company is at an advanced stage of negotiations with its main creditors and is hopeful of reaching agreement in the near future.
‘The Company is also in negotiations with the Professional Footballers Association and the players of the club. The Company is due to meet with the PFA tomorrow to further discuss cost saving proposals which the Company’s Directors believe are essential in order to avoid the Company and the Club being placed in administration.’
Last month fellow first division club Watford was forced to implement a 12% reduction in players’ salaries to avoid going into administration.
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