Leeds creditors halt standstill agreement
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Your support makes all the difference.Leeds United's major creditors have not renewed the 'standstill agreement', which ran out today, but have backed the club in its bid to finalise a takeover deal.
Leeds first announced the formal standstill arrangement on December 4 last year, now nearly three months ago.
A statement to the Stock Exchange read: "The board of Leeds United plc announces that following discussions with its major finance creditors, the existing standstill arrangements that expired at 2pm today have not been formally renewed.
"However, the board confirms that it continues to retain the support of these major finance creditors whilst it seeks to finalise its negotiations with interested parties relating to a long term financial restructuring of the group.
"In view of the fact that the group no longer has a formal standstill arrangement, the board has concluded that it is inappropriate for trading in the company's shares to continue and accordingly has requested that trading in its shares be suspended."
It had been hoped a second Yorkshire-based consortium would yesterday enter the race to buy the cash-strapped club, whose gross debts exceed more than £100million.
But, despite stating earlier this week they were hopeful of making an offer, the group - which included former Huddersfield chairman Terry Fisher - instead "reluctantly concluded" they would not be doing so.
It means the consortium represented by insolvency expert Gerald Krasner are now the only currently viable option for Leeds chief executive Trevor Birch and the creditors.
Talks have now been ongoing for more than five weeks between the club, consortium and creditors - bondholders M&G, MetLife and Teachers, player-leasing agents Registered European Football Finance Ltd, the Inland Revenue and Customs & Excise.
Krasner yesterday confirmed talks "are progressing" and that his group "are still optimistic" a deal will be concluded in due course, although it has since been made clear any takeover will not realise any value for shareholders.
And today the consortium represented by Krasner issued a statement of their own in which they insisted they have the club's best interests at heart and dismissing fears that they were looking to acquire Leeds as an asset stripping exercise.
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