BusinessBusiness RecoveryNo decision yet on future of Leeds FC

No decision yet on future of Leeds FC

Six hour creditors meeting held at Elland Road – but no course of action decided

A six hour long creditors meeting held at the banqueting suite at
Leeds United has
failed to
give chairman Ken Bates the green light to take over the club
.

The Bates takeover required 75% creditor approval and after prolonged delays,
he received 75.02%. A recount has been announced and the meeting will reconvene
tomorrow morning.

Even if administrator KPMG declares Bates the winner, The Times
reported that the vote would be contested, with some of the rival bidders
threatening to take the dispute to court.

Leeds went into administration a month ago, with KPMG appointed as
administrators.

The club is in dire straits with net debts of £35m
and
HM Revenue & Customs
alone owed a £5m.

Astor Investment Holdings, based in the British Virgin Islands, is the
biggest creditor, owed nearly £13m, while Swiss-based Forward Sport Fund is owed
£2.4m. The third big creditor, Krato Trust, domiciled in Nevis in the Caribbean
is owed £2.5m.

All three have signalled they would back Bates.

Further reading:

Ken Bates: Leeds could be doomed without CVA

FA looks to tackle 11th hour administrations

Leeds score deliberate own goal

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