Fat lady warming up as Leeds suspend trading

LEEDS UNITED'S long battle for financial survival moved into the end game yesterday after the creditors refused to sanction a further extension to the standstill agreement.

For almost three months Leeds chief executive Trevor Birch has traded on his good relationship with the creditors to win the cash-strapped club time and hopefully find a buyer.

It was widely anticipated Birch and Leeds would be granted a sixth extension to the arrangement which had been in place since December.

But the main creditors bondholders M&G, MetLife and Teachers plus Gerling Insurance Co are owed a combined £82million and yesterday forced Birch's hand.

Trading was suspended in Leeds' shares after the 2pm deadline of a fortnight ago expired and the club eventually released a statement to the stock exchange.

It read: "The board of Leeds United plc announces that following discussions with its major finance creditors, the existing standstill arrangements that expired at 2pm have not been formally renewed.

"However, the board confirms 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.

"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."

In short, Leeds have moved closer to administration as early as next week but only to facilitate a sale to the Yorkshire-based consortium involved in takeover talks for five weeks.

The deal, understood to be in the region of £25-30m, involves a restructuring of the company, but as has been outlined, there would be no value to shareholders.

The consortium, represented by insolvency expert Gerald Krasner, are the only option for the creditors after a second Yorkshire group dropped out of the race on Wednesday.

Meanwhile, caretaker-boss Eddie Gray has urged fans to remember Harry Kewell for his on-pitch talent rather than the acrimony surrounding his move to Liverpool.

Kewell returns to Elland Road for the first time tomorrow since his controversial summer transfer in which many believe his agent Bernie Mandic held Leeds and then chairman Prof. John McKenzie, to ransom.

Although the deal was a reported £5m, £2m of that lined the pocket of Mandic, while a further £500,000 went into the player's pension fund.

Leeds picked up £2.5m for a player rated at four times that amount.

"You don't know what kind of reception he will get, but he was great to work with," said Gray.

"Supporters should remember players move on. Gone are the days when you get players staying at clubs for the majority of their careers."