English Premiership strugglers Leeds United have earned a reprieve in their fight to avoid falling into administration, it was reported on Thursday.
Leeds, £78-million in debt, are set to announce an agreement with their American bond holders.
It is believed the bond holders, owed £60-million pounds, have agreed to free up funds.
But Leeds are still waiting for news about a possible takeover by Bahrain-based Sheikh Abdul Rahman bin Mubarak al-Khalifa, who has denied he is waiting for the club to go into administration before making a move.
”I am not a vulture,” he told BBC Radio.
”It is very important the fans know I have the club at heart, and my intentions are to move forward, because it looked like administration was just around the corner.
”We have a team working, negotiations ongoing and a consortium ready if things go according to plan — and that is, I hope, to avoid administration.”
Leeds said they had yet to hear from the sheikh, whose own financial muscle was questioned after he revealed he would not be using any of his personal wealth to finance a takeover.
The sheikh is the brother of Bahrain’s finance minister and has been a Leeds fan for 25 years since going to Elland Road when he was studying in the city in the 1970s.
Reports said on Thursday the American bond holders had given Leeds six to eight weeks to find new owners or arrange a further restructuring of their debt.
Leeds made it to the semifinals of the Champions League only three seasons ago, but in October announced an annual loss of just less than £50-million, the largest to date for a quoted English football club.
The financial woes are the result of former chairperson Peter Ridsdale’s attempts to propel the club back into the top level of British football by spending heavily on players and wages.
Ridsdale resigned in March, and his replacement, John McKenzie, later slammed ”indulgent spending”, which included heavy outlays on company cars, private jets and even leased goldfish for offices. — Sapa-AFP