Leeds stave off administrators again

Leeds have today been granted a further extension to their standstill agreement by the principle creditors who are continuing to mull over a buy-out bid from a Yorkshire-based consortium.

The deadline has been extended by a week after chief executive Trevor Birch last week raised enough funds to ensure Leeds remain in business over the closing weeks of the campaign.

A statement to the Stock Exchange read: “The board of Leeds United plc confirms that its major finance creditors have today granted an extension to the existing standstill agreement until 5pm on Friday, February 13, pending the outcome of negotiations with interested parties and further discussions concerning the longer term restructuring of the group.

“On the basis of the current discussions the board of the company does not believe that there will be any realisation of value for shareholders from the offers being contemplated.”

Negotiations continue with the consortium who yesterday confirmed talks are “at an advanced stage” with both the club and creditors, although Birch is intent on making sure no stone remains unturned before going through with the deal.

Although an initial offer was apparently rejected as it did not meet with the approval of the bondholders, the consortium have apparently increased their bid.

Birch, caretaker-boss Eddie Gray, first-team coach Kevin Blackwell and the playing staff last Thursday all agreed to a 25% wage deferral, amounting to around half of the £5m (€7.3m) that had been needed.

Leeds’ acting-chairman had previously explored all avenues, with former managers David O’Leary, Terry Venables and Peter Reid agreeing to defer severance payments owed in the wake of their sackings in the past 20 months.

Birch also received a timely windfall from rivals Manchester United nine days ago as full and final payment for Rio Ferdinand’s transfer to Old Trafford in July 2002.

Leeds would have received further cash from the sale of keeper Paul Robinson to Tottenham on Monday, only for the deal to fall through due to Premier League transfer regulations.

Despite that, Leeds have again temporarily satisfied the creditors, bondholders M&G, MetLife and Teachers, along with player-leasing agents Registered European Football Finance Ltd, as well as the Inland Revenue and Customs & Excise.