Times Online - Newspaper Edition
Leeds get another week to chase bid
By Russell Kempson
LEEDS United have been granted a further extension to their standstill agreement by the principal creditors who are continuing to mull over a buy-out bid from a Yorkshire-based consortium. The deadline has been extended by a week after Trevor Birch, the Leeds chief executive, raised enough funds to ensure Leeds remain in business over the closing weeks of the campaign.
Yesterday, a statement to the Stock Exchange said: “The board of Leeds United plc confirms that its major finance creditors have today granted an extension to the existing standstill agreement until 5pm on Friday, February 13, pending the outcome of negotiations with interested parties and further discussions concerning the longer-term restructuring of the group.
“On the basis of the current discussions, the board of the company does not believe that there will be any realisation of value for shareholders from the offers being contemplated.” Negotiations continue with the consortium, which confirmed that talks are “at an advanced stage” with the club and creditors. Although an initial offer was apparently rejected because it did not meet with the approval of the bondholders, the consortium has, it seems, increased its bid.
Birch, Eddie Gray, the caretaker manager, Kevin Blackwell, the first-team coach, and the playing staff last Thursday agreed to a 25 per cent wage deferral, amounting to around half the £5 million that had been needed. Birch, also the acting chairman, had previously explored other avenues, with David O’Leary, Terry Venables and Peter Reid, the former managers, agreeing to defer severance payments owed in the wake of their dismissals in the past 20 months. Birch also received a timely windfall of £1.5 million from Manchester United nine days ago as full and final payment for Rio Ferdinand’s transfer to Old Trafford in July 2002.
Leeds get another week to chase bid
By Russell Kempson
LEEDS United have been granted a further extension to their standstill agreement by the principal creditors who are continuing to mull over a buy-out bid from a Yorkshire-based consortium. The deadline has been extended by a week after Trevor Birch, the Leeds chief executive, raised enough funds to ensure Leeds remain in business over the closing weeks of the campaign.
Yesterday, a statement to the Stock Exchange said: “The board of Leeds United plc confirms that its major finance creditors have today granted an extension to the existing standstill agreement until 5pm on Friday, February 13, pending the outcome of negotiations with interested parties and further discussions concerning the longer-term restructuring of the group.
“On the basis of the current discussions, the board of the company does not believe that there will be any realisation of value for shareholders from the offers being contemplated.” Negotiations continue with the consortium, which confirmed that talks are “at an advanced stage” with the club and creditors. Although an initial offer was apparently rejected because it did not meet with the approval of the bondholders, the consortium has, it seems, increased its bid.
Birch, Eddie Gray, the caretaker manager, Kevin Blackwell, the first-team coach, and the playing staff last Thursday agreed to a 25 per cent wage deferral, amounting to around half the £5 million that had been needed. Birch, also the acting chairman, had previously explored other avenues, with David O’Leary, Terry Venables and Peter Reid, the former managers, agreeing to defer severance payments owed in the wake of their dismissals in the past 20 months. Birch also received a timely windfall of £1.5 million from Manchester United nine days ago as full and final payment for Rio Ferdinand’s transfer to Old Trafford in July 2002.