In June the club released the worst-ever results for a UK football club with losses of £49.5m and debts of £80m.
Today it said negotiations to secure ‘first phase complex debt restructuring’ with principle creditors to provide it with working capital and give it time to implement a more permanent restructuring plan had failed to reach a satisfactory conclusion in time to issue a circular and obtain shareholder approval before Christmas.
As a result there will be no planned subscription for shares and no circular issued to shareholders.
Leeds said discussions would continue, but warned if the negotiations were unsuccessful, ‘the directors may be forced to seek the protection of an administration order’.
Last week Leeds hired Robin Binks, a corporate finance partner from Deloitte, to advise it on the restructuring of its £80m long-term debt.
The club is being run by Ernst & Young turnaround specialist Trevor Birch, who is chief executive.
Allan Leighton, chairman of the Royal Mail and head of BSkyB’s audit committee is deputy chairman at the club and has committed £2.2m of his own money with a further £2.2m pledged from ARM Holdings Group.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies