story was given as news flash on Five Live - said would go into admin today (go it from their finance dept) but that we would be bought back by Bates !! This is what YEP said would happen yesterday Dave
Here is article By David Parkin Business Editor AS Leeds United chairman Ken Bates remained locked in talks with his legal and financial advisers last night, speculation mounted about how the next chapter in the club's increasingly complex story will unfold. Bates and his lawyers at Walker Morris in Leeds have been in discussions with insolvency experts at accountancy firm KPMG which may lead to them being appointed as administrators of Leeds United. Despite an appeal for potential buyers to come forward with offers, Bates is not believed to have held discussions with any of the interested parties this week. He is said to want around £20m for the club, and that, coupled with its still heavy debts, is a figure that any would-be buyer is unlikely to stump up for a club facing a future in League One. But if administration happens then it will not necessarily spell the end of the former Chelsea chairman's two-year reign at Elland Road. Bates could make an offer to the administrators which they must consider on behalf of the club's creditors. That cash offer would be to buy the club out of administration, having shed its debts. It is known as a 'pre-packaged phoenix'. What the administrators must consider is whether they believe they can get a better offer than the 'pre-pack' deal on the table. What Bates must consider is whether anyone will top his offer. Sources say that at least one potential buyer is ready to make a better offer for the club than the one Bates may lodge if the club is in administration. Charles Escott, managing partner and corporate recovery partner at accountants RSM Robson Rhodes in Leeds, has worked on the administration of both Bradford and Bury football clubs. "A creditor, debenture holder or director of a company can apply to court for an administration order. That can be done by lodging a set of papers with the High Court. However, the Enterprise Act has streamlined the process by allowing a fax to be sent for an administration order out of court hours." So the tense discussions over the club's future could continue into the bank holiday weekend. If a pre-pack deal is accepted then Mr Escott says that the insolvency practitioner must be "pretty sure" he has achieved the best price. "And that is down to professional judgement," he adds. If Leeds did go into administration then the estimated £30m of debt which it is carrying including more than £10m of loans from the Swiss registered Fortress Sports Fund could be shed. Bates is believed to have put money into Leeds United through Fortress Sports Fund which would make him the club's biggest creditor so giving him influence over the administration. Other creditors include the Inland Revenue. Administration may also allow the club to renegotiate the lease on its Elland Road ground. That was sold to Manchester property magnate Jacob Adler in November, 2004 by the former board, led by then chairman Gerald Krasner. Elland Road is owned by a British Virgin Islands-registered company called Teak Trading Corporation. Leeds United leases the stadium and its Thorp Arch training ground and retains an option to buy both back for around £18m. A debt-free Leeds United would be a much more attractive proposition for the clutch of groups which remain interested in buying a club which was a Premiership and Champion's League force only six years ago. Last Updated: 04 May 2007 Tim Geldard <[EMAIL PROTECTED]> wrote: Think I just caught radio five saying we're in Admin _______________________________________________ the Leeds List is an unmoderated mailing list and the list administrators accept no liability for the personal views and opinions of contributors. Leedslist mailing list [email protected] http://list.zetnet.co.uk/mailman/listinfo/leedslist The Leeds List - "where never is heard a discouraging word..." _______________________________________________ the Leeds List is an unmoderated mailing list and the list administrators accept no liability for the personal views and opinions of contributors. Leedslist mailing list [email protected] http://list.zetnet.co.uk/mailman/listinfo/leedslist The Leeds List - "where never is heard a discouraging word..."
