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Leeds could be back up for grabs
England - 05 July, 2007
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Ken Bates' frantic effort to avoid a date with HM Revenue and Customs was snuffed out with a high court hearing ser for Friday, and English Leeds United could be placed back under KPMG's care.
Bates, who again took control of Leeds United after placing the club into administration, upped a 1p on the GBP offer to creditors to 8p per GBP. But that was not enough to stop the government from stepping in.
Not only might Bates face court, but there also is a possibility that administrator KPMG might nullify the buyback by Bates and his group. During the re-purchase, Leeds United's largest creditor – an offshore company – threatened to hold out and block any sale if Bates was not allowed to re-purchase the club.
KPMG had cleared the offshore company from any ties to Bates before the credit voting. With th4e offshore company holding a bloc on anyone but Bates because of its 40percent plus stake in the debt, it was allowed to dictate matters.
The Football League, which was not for Bates' 1p on the GBP offer, now might play a bigger role in the direction of the club.
Bates still was playing up that Leeds United could die off without leadership. Whether that is a claim with or without merit could be determined by KPMG's ability to find a new owner.
"If there is a legal challenge it could take two or three months to get to court and be decided," Bates said. "In the meantime who is going to pay to run the club? So far it's been funded by the 'new Leeds' but, if there is a challenge, the 'new Leeds' won't do it because it's a risk. The implications are that the club would close down. It's not about personalities, it's about Leeds United and the many people who support the club on and off the field."
KPMG might have to restart the administration process and, therefore, get better offers for creditors. With a "golden share" administration hearing, KPMG would be allowed to sell to the highest bidder without worries of creditors voting on which offer is in their best interests.
At least one other group that did not win creditor support said it still was interested in the club.
Bates, who again took control of Leeds United after placing the club into administration, upped a 1p on the GBP offer to creditors to 8p per GBP. But that was not enough to stop the government from stepping in.
Not only might Bates face court, but there also is a possibility that administrator KPMG might nullify the buyback by Bates and his group. During the re-purchase, Leeds United's largest creditor – an offshore company – threatened to hold out and block any sale if Bates was not allowed to re-purchase the club.
KPMG had cleared the offshore company from any ties to Bates before the credit voting. With th4e offshore company holding a bloc on anyone but Bates because of its 40percent plus stake in the debt, it was allowed to dictate matters.
The Football League, which was not for Bates' 1p on the GBP offer, now might play a bigger role in the direction of the club.
Bates still was playing up that Leeds United could die off without leadership. Whether that is a claim with or without merit could be determined by KPMG's ability to find a new owner.
"If there is a legal challenge it could take two or three months to get to court and be decided," Bates said. "In the meantime who is going to pay to run the club? So far it's been funded by the 'new Leeds' but, if there is a challenge, the 'new Leeds' won't do it because it's a risk. The implications are that the club would close down. It's not about personalities, it's about Leeds United and the many people who support the club on and off the field."
KPMG might have to restart the administration process and, therefore, get better offers for creditors. With a "golden share" administration hearing, KPMG would be allowed to sell to the highest bidder without worries of creditors voting on which offer is in their best interests.
At least one other group that did not win creditor support said it still was interested in the club.
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