United told they must go through CVA process
Click on thumbnail to view image Click on thumbnail to view image Click on thumbnail to view image Click on thumbnail to view image « Previous « Previous Next » Next » View Gallery By Richard Sutcliffe Exclusive FRESH doubts were last night cast over the future of Leeds United after it emerged the administrator has been urged by the Football League to reconstitute the Company Voluntary Arrangement (CVA). Officials from KPMG and United met with League chairman Lord Mawhinney on Tuesday for four hours in an attempt to break the deadlock that has seen the club left in limbo since being sold to Ken Bates on July 11. The Leeds chief beat off a joint bid by Redbus and Simon Morris plus interest from former Hull City chairman Adam Pearson to regain control and it was expected that the League would rubber-stamp the deal at a board meeting 24 hours later by transferring the club's share to the new company, Leeds United 2007 Ltd. That did not happen, however, and last night the League reiterated their stance that Leeds must go through the same process as the other 41 clubs who have been in administration by completing a CVA, where a company agrees on repayments of debt to its creditors. Talking to the Yorkshire Post at the League's headquarters in central London, Lord Mawhinney said: "I spoke personally at length to the highest levels of KPMG and Leeds United 2007 on Monday and we then had a four-hour meeting here on Tuesday. "We all agreed that the best way to proceed was to try and reconstitute the CVA. This is the normal way we get clubs out of administration. "We have had 41 previous clubs who have been in administration and all of them have gone down this route, and I expect to hear back from KPMG their considered opinion by the end of the week. "You have to bear in mind that they are appointed by the law of the land and not by the law of football. So, we all have to live with their decisions. "We have to try and make progress, but they get to make the decisions because that is what the law says." The sale of the club to Bates last month was expected to make a legal challenge by the Inland Revenue to the original CVA – which was passed by a 75.2 per cent majority in June – redundant. A date had been set for the Revenue's case to be heard in the High Court for September, but it was claimed sufficient funds were not available to keep the club going in administration that long. Lord Mawhinney did confirm Leeds can kick off the season, which starts in just eight days, despite being in administration. However, when asked if he thought there was a chance United might not start the campaign he said: "If you are asking me to make a prediction, I don't have a crystal ball. But if you are asking me if I am an optimist or a pessimist, I am an optimist. "Part of our policy is to do whatever we can that is within the rules to ensure the continuation of our member clubs. That remains as true for Leeds United as it did for the other 41 clubs." When pressed further on what would happen if United had to be removed from the League One fixture list, Lord Mawhinney said: "We will go there when we have to." He added: "One of the issues we have been wrestling with is that the administrator sold to Leeds United 2007 certain assets and liabilities. These include Elland Road and the players' contracts. "But the player registrations remain with the old company. These are not in the gift of the administrator, these are a relationship between us and the club. That is what we have to resolve." The news that the possible transfer of the League share has been further delayed is yet another blow to Dennis Wise with the Leeds manager having been unable to sign any players this summer. Lord Mawhinney said: "We do understand the time pressures. The fact we spent four hours here on Tuesday should send some sort of signal to people that we are taking this extremely seriously. "We now have to wait to hear what they (KPMG) say and we can then look to make progress on the back of whatever they say. We have all impressed on them the seriousness of the time circumstances." A spokesman for KPMG said last night: "We are in dialogue with all interested parties including the Football League to try to bring things to a positive conclusion." Last Updated: 03 August 2007 8:38 AM _______________________________________________ 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
