Bates Regains Leeds United Control
Ken Bates has regained control of Leeds United following the announcement of the CVA vote results.
Bates, who offered creditors a 1p in the £1 offer has won the 75% of votes required for him to buy the club back.
However this was not by any means an easy win, as the result is reported to have stated that Bates won 75.2% of the votes from creditors following the recount. Club administrators KPMG stated that 5 potential consortiums had expressed an interest and proved the required funds in a bid to purchase the club, but it is Bates that appears to have won, for now.
What happens to the club is up to Ken Bates and the newly formed Leeds United Football Club Ltd. It is too early to gauge a reaction from Bates` opposition bidders, nor from the big man himself. The acceptance of the offer could pave the way for Bates` consortium to now sell the club on in order to recoup losses and potentially, make a profit individually from the sale.
The statement posted on the Leeds United official website read:
Leeds United Association Football Club Limited (The) in administration: Creditors meeting vote 4th June 2007.
Following the Leeds United creditors meetings that have taken place on Friday 1 June and Monday 4 June, the Administrators of Leeds United Association Football Club Limited (The) can confirm the result of the vote on the CVA (company voluntary arrangement) proposal to sell the Club to a newly formed company, Leeds United Football Club Ltd.
Creditors have approved the CVA proposal, which means, subject to Football League and Football Association approval, the business and assets, including players, of the Club will transfer to Leeds United Football Club Ltd, the directors of which are Ken Bates, Shaun Harvey and Mark Taylor.
Richard Fleming, joint administrator and KPMG Restructuring partner said: 'I am satisfied that in voting to accept this CVA proposal the creditors have approved a solution that allows the Club to plan ahead for next season; reduces uncertainty for all those with an interest in Leeds United; provides some return for creditors; and avoids liquidation.
Leeds United Football Club Limited must now seek approval from the Football League and can begin to rebuild for next season. The supervisors can also begin the process of agreeing creditors' claims for dividend purposes.'
The CVA proposal was approved by 75.2 percent of the creditors who voted, by value. It required 75 percent of the vote.
The creditors will receive an initial dividend of 1p in the £ with a substantial additional dividend to follow in the event that the Club regains Premiership status within five seasons.
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