Group closer to buy-out of Leeds

A YORKSHIRE-BASED consortium have moved a step closer towards securing a £20m buy-out of cash-strapped Leeds.

The group yesterday held further detailed negotiations with chairman Trevor Birch and finance director Neil Robson, with both parties outlining what they require from each other if a deal is to be brokered.

Discussions are to continue throughout the week, although it remains to be seen whether they can be concluded by 5pm on Friday, the latest extension deadline to the "standstill agreement" imposed by the club's principal creditors.

Birch, though, does have the prospect of another week's grace beyond that, which is likely to be used, particularly after claiming the talks with the consortium have been "constructive."

It is understood the group's offer for Leeds was officially lodged with the club's lawyers yesterday, along with proof that the finances are in place and the potential buyers are credible.

The bondholders MetLife and Teachers in the United States and British firm M&G, along with the player-leasing agents Registered European Football Finance Ltd are now key to the deal.

Much will depend on whether they accept the offer, one they are known to be clearly considering, and the only one on the table as suggestions a second, local consortium are attempting to raise funds to make a bid have been refuted.

A representative for the consortium has confirmed they are in "serious negotiations with the club and the bondholders."

Gerald Krasner, who specialises in corporate recovery, restructuring and insolvency for Bartfields Chartered Accountants in Leeds, said: "I can confirm there's a consortium that I have been asked to represent. We've signed all sorts of confidentiality agreements. However, I can state we are in serious negotiations with both the club and the bondholders."

"We had further discussions this morning (with the club) and both sides know where they stand. We know what we have to do and they know where we are coming from.

"Our objective is to avoid administration at all costs. I don't think the public realise just what administration would mean for Leeds United."

Despite 54-year-old Krasner's line of work, he has made it clear the group "would not be looking to do anything on the insolvency front with Leeds."

Due to reasons of confidentiality Krasner, a Whites fan of almost 30 years, refused to divulge the names of the other members of the group, although speculation is rife as to who is fronting the bid.

Former Bradford chairman Geoffrey Richmond continues to be touted, but he reiterated yesterday he has "nothing whatsoever to do with it," while ex-Huddersfield chairman Terry Fisher has also ruled himself out of the picture.

Two other names to have been mentioned are local property developer Simon Morris and entrepreneur Melvyn Levy.

Birch, though, is known to still be looking at alternative ways of raising the £3.5m to £5m needed to see Leeds through to the end of the season should talks collapse.

Leeds, meanwhile, are still unsure whether striker Mark Viduka will be available for this Saturday's Elland Road clash against Middlesbrough. Viduka has been at the bedside of his critically ill father Joe since flying home to Australia immediately after the 1-0 home defeat to Spurs 11 days ago.

Although caretaker-boss Eddie Gray has been in contact with Viduka since then, the 27-year-old has so far given no indication as to when he will return.