This is what I thought whilst I was in my Radox bath this morning: The Joint Administrators of Leeds United - Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring - have advised creditors of the club that the creditors meetings will be held at Leeds United, commencing at noon on Friday June 1 2007. That's tomorrow boys and girls.
The initial meeting enables the Administrators to fulfil their statutory duty to put their proposals for the administration to the creditors. The key activity at this meeting will be a vote to approve progressing the CVA (company voluntary arrangement) process. Bates can be present / represented at this and it needs a 75% Majority in favour. This is where he offers the creditors bugger all and his mates back him up. In anticipation of approval of this proposal, the Administrators have scheduled a second creditors meeting for 2pm on the same day at which the CVA proposal to complete the sale of the club to Leeds United Football Club Limited will be considered and is expected to be voted upon. Bates cannot be present at this and it needs a 50% majority of the creditors to go through. Any other bids the administrators have recieved may also be presented at this stage. If the CVA vote fails the club is handed back to the administrators and they have to start again. Their options are to sell on the club as a going concern or to sell off assets to pay the club's debts. Given that there are serious offers on the table at least fom Morris and probably from Revie. The administrators will have to look at/negotiate around these and then present them to the creditors along with any others that will doubtless come flying in. Meanwhile the club continues to exist until such time as the administrators can do no more and have to flog the team strip at a car boot sale in Batley. Yes there is an embargo on player transactions and no we will not be buying any goldfish during this period. What would be interesting is to know what people seriopusly think might happen if: a) Bates' CVA fails, b) It succeeds and the takeover vote fails c) It succeeds and the takeover vote succeeds In case a) I think Bates will have to regroiup but that the other bidders will walk all over him In case b) I think Morris will take over almost immediately with the shelter of a CVA In case c) I think it will only be amater of time before Bates sells up to anyone who will cross his palm with the correct quantity of silver. As far as the club is concerned it will continue in some battered form or other but it will not succeed until two key conditions exist - the first is transparency of financial operation and ownership and the second is where the community and supporters are meaningfully involved in the club. It is not possible to operate a beast such as a major football club through stealth and innuendo nor is it possible to ignore the one constant alongside which it exists. For the community's part (and again in this I include supporters and the City on even terms) I feel that it will not achieve meaningful involvement unless it is organised and well led. How this is achieved is a matter for the community, its representatives and those active within the community. Perhaps affected organisations might dwell on this. For the club's owners part (whoever that may be) I say just because others operate on a basis of obscuration and with a lack of clarity doesn't mean to say that Lees United should (or any other club for that matter). A statutory Disclosure regime for football clubs still looks a long way off to me but it should not be lost sight of as an ideal. Betty _______________________________________________ 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 Join The Leeds United Supporters Trust at www.lufctrust.org
