Leeds United face administration crisis

Cash-strapped Leeds United have revealed they could soon be forced into administration if negotiations with their creditors fail…

Cash-strapped Leeds United have revealed they could soon be forced into administration if negotiations with their creditors fail.

The Yorkshire club were today hoping to announce details of a radical restructure of their debts following talks with the American bondholders to whom they owe almost stg£60million, and a Guernsey-based finance company who helped fund a number of player purchases, with the club owing a further £21million.

But those discussions have so far failed to reach a satisfactory conclusion, with the club confirming in a statement to the Stock Exchange this morning they "may be forced to seek the protection of an administration order".

Talks with creditors had failed to meet a deadline and it may be forced to seek creditor protection if it cannot get an agreement, sending its shares down.

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The club also said it would not go ahead with a planned subscription for shares. Shares were off 17.9 per cent at 2.975 pence after the announcement.