Leeds United pays off creditors

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Administrators acting for the club have settled with the final creditors still owed money from the period of its administration. This includes a £30,000 pay-off to former chairman, Professor John McKenzie. Leeds United plc, originally a main market listed company was placed into administration as part of the deal agreed in March 2004 with Gerald Krasner's consortium.

Garry Wilson, the Ernst & Young partner appointed as administrator stated yesterday according to the Guardian that out of £500,000 secured at the time, all the smaller creditors who were still owed money had been paid off in full. The 30 to 40 small creditors included catering companies, former employees, consultants and other providers.

After all the debts had been cleared £100,000 remained and this sum has now been returned to the club. Ken Bates, the acquirer of the club from Krasner's consortium is believed to be ready to allow manager Kevin Blackwell to use it to strengthen the team. "It's the curtain coming down on the saga," said Wilson. "The football club can now look to the future rather than the past. It's a happy ending to a sad tale in that the creditors have been paid in full and some money has been returned to the club." The club's bondholders and the firm with which Leeds effectively mortgaged their players – (REFF) Registered European Football Finance, backed by the insurance company Gerling -agreed to a settlement of £22m at the time of the takeover while claiming they were creditors to the tune of more than £82m.