Leeds' creditors to vote on club sale

The race to take control of Leeds could be decided at a creditors’ meeting early next month.

The club’s administrators, accountancy firm KPMG, have announced a meeting will take place on June 1 when creditors will vote on who they want to take the club forward.

Leeds went into administration on May 5 with debts of £35m (€51m) following a winding-up order issued by the Inland Revenue, who are owed £5m (€7.29m) in unpaid taxes.

The business was, with the administrators’ approval, almost immediately bought by a new company, Leeds United Football Club Limited, of which Ken Bates is a listed director.

But the sale is subject to approval by the club’s creditors who will be furnished with full details of takeover plans put forward by other consortia at the meeting.

Leeds property entrepreneur Simon Morris has declared his intention to launch a £10m (€14.5m) takeover bid and it has been reported former West Ham chairman Terry Brown, a Dubai-based consortium headed by former Leeds manager Don Revie’s son Duncan and two separate Irish consortia are also in the running.

Joint administrator Richard Fleming, a partner at KPMG Restructuring, said: “At this meeting I will outline the proposal to sell the club to Leeds United Football Club Ltd and will also inform the creditors of any other matters which could influence their decision; such as details of the level of interest from other potential buyers of the club and indeed any alternative bids.

“Creditors will then be invited to vote on the proposal and any modifications that emerge.

“The proposed sale enables the club to survive and offers a minimal return to creditors.

“We know from preliminary discussions that the deal is supported by some of the larger creditors by value, however it still requires a majority of 75% to be approved.

“If the proposal is carried, the CVA process will move forward, which will involve agreeing the club’s new ownership with the Football League and paying a dividend to creditors.

“If not, we will seek an alternative solution, and again request creditor approval.”

Morris, chief executive of SR Morris Group, plans to develop land around Elland Road and build a new 50,000 all-seater stadium as part of a £400m (€583m) entertainment complex.

Morris was the leading shareholder in the Yorkshire consortium that were in charge at Elland Road for 10 months from March 2004.

Another interested party fronted by Duncan Revie has confirmed they want to open takeover talks with Leeds chairman Bates.

Revie, son of legendary former manager Don Revie who moulded Leeds into one of Europe’s most feared teams during the 1960s and 70s, declared his interest in taking control at Elland Road last week.

Revie, who heads Soccerex, a football conventions and forums company, claims finances are not a problem as the Dubai-based Maktoum family are among his backers.

Morris has also written to Sports Minister Richard Caborn and Leeds MP Colin Burgon seeking a meeting with them to discuss his plans for Leeds.

Burgon, Labour MP for Elmet, has voiced his concerns to Caborn about the speed with which the club’s administrators agreed to sell the business and its assets to the new company headed up by Bates.

Morris said: “We’ve asked the sports minister and Mr Burgon for a meeting because we’re serious about our bid for Leeds United.

“We want to give them a full understanding of our position.

“I’ve been a Leeds fan all my life. We want to give Leeds a landmark stadium that will make the city the premier location for sport and leisure in the region.”