THE FATE OF LEEDS UNITED LIES IN THE HANDS OF TRAVEL AGENTS AND A MOBILE DJ

Last updated : 23 May 2007 By editor

The Times reports:

'The Battle of Leeds United took another twist last night when Duncan Revie said that he would not be tabling a takeover bid before the meeting that will determine the future of the troubled club.

'However, Gerald Krasner, the former chairman and an insolvency expert, denied that Ken Bates's offer to creditors was a done deal. He has appealed to the 1,350 businesses and individuals owed money by the club, who were relegated to Coca-Cola League One this season, to present a united front against Bates if they want to stop him buying Leeds for what will amount to £500,000.

'Revie's decision not to offer creditors an alternative removes a significant obstacle standing in Bates's way. Another is Simon Morris, the former director, who has tabled a £10 million bid with the promise of a further £25 million investment to stabilise the club's finances and a commitment to building a multi-purpose arena at Elland Road.

'Krasner served on the same Leeds board as Morris but says that he is not involved in any bid. However, he has been advising creditors free of charge and has told them that if the CVA is voted down, he believes that fresh investment will be forthcoming.

'Krasner described Bates's offer of a penny in the pound for unsecured creditors as "derisory", but the trouble for any rival bid is that the CVA states that Bates will have the "unqualified support" of the club's major creditors, Astor Investment Holdings Ltd, Forward Sports Fund (FSF) and Krato Trust, who are owed close to £18 million.

'The potential stumbling block for Bates will be if Astor, FSF and Krato Trust are deemed to be connected creditors. That will mean he needs to secure 50 per cent of the vote from unconnected creditors. These include 184 season ticket-holders, a travel agent and mobile DJ.'