Joint administrators Richard Fleming, Howard Smith and Mark Firmin of KPMG LLP today announce the sale of Leeds United to Leeds United Football Club Limited, headed by Ken Bates, for an undisclosed sum.
The winning bid for the club was unconditional and follows the decision by the administrators to put the club up for sale outside of a Company Voluntary Arrangement ('CVA').
Joint Administrator Richard Fleming said:"We received several offers for the business which we considered carefully. The approved deal represents the best result for creditors in the circumstances and we believe provides the club with the best chance of survival."
The club had been widely marketed post administration and prior to the creditors' meeting held on June 1 2007.
Interested parties who were able to provide proof of funding were able to do extensive due diligence on all available information.
Such additional information as was available to the administrators was made available to the interested parties last Friday after Her Majesty's Revenue and Customs ('HMRC') issued a challenge to the CVA which had been approved by creditors.
Creditors were aware that any challenge would be likely to result in the failure of the CVA as the administrators do not have the necessary funding arrangements to trade the football club prior to any challenge being heard.
In addition, the Football League made it very clear to the administrators that it would not consider the transfer of the Football Share, allowing the club to play in League One next season to a new entity without an implemented CVA, except in exceptional circumstances.
The League does not consider such circumstances currently apply to Leeds United.
Subsequent to the Revenue's challenge, we have kept both HMRC and the Football League fully informed in order that both parties could continue to consider their respective positions.
It has not been possible to reach agreement with the Football League on any workable basis that would enable the administrators to sell the club with the benefit of the Football Share in the short term.
Richard Fleming added: "We understand this has been a difficult time for all those concerned about the future of Leeds United.
"This deal is a necessary step if the club is to have a chance of playing in League One in the 2007/08 season. We wish the club well in its endeavours to secure a transfer of the Football Share."
Comment from the club will appear on leedsunited.com shortly...
