BusinessBusiness RecoveryNo more extensions for Leeds United

No more extensions for Leeds United

The noose is tightening around Leeds United Football club after creditors decided not to renew an existing standstill arrangement with the embattled club.

Link: Consortium considers £30m Leeds rescue plan

This follows the Financial Services Authority temporarily suspended trading in the club’s shares at the request of its management.

But in a statement to the Stock Exchange, the board said it ‘continues to retain the support of these major finance creditors whilst it seeks to finalise its negotiations with interested parties relating to a long term financial restructuring of the group?

The board said the decision to suspend the shares was taken because it concluded that ‘in view of the fact that the group no longer has a formal standstill arrangement, the board has concluded that it is inappropriate for trading in the company’s shares to continue and accordingly has requested that trading in its shares be suspended’.

It is now being suggested that either the club has found a buyer following five weeks of negotiations with various potential buyers, or it has decided to go into administration.

A Yorkshire-based consortium is believed to be considering a £20m buyout of the club after another consortium fell away.

The club’s major creditors have granted Leeds extra time to repay back their debts on five occasions, with the last extension expiring at 2pm today.

Leeds is currently bottom of the premiership.

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