Leeds hopeful of last ditch rescue
LEEDS, England -- Leeds United's hopes of staving off financial collapse rose on Tuesday when a consortium bidding to take over the cash-strapped club said they were in "serious" negotiations with creditors owed more than $120 million.
Gerald Krasner, a corporate recovery specialist acting for the consortium, said the potential new owners of the club, whose identity has not been revealed, were determined to avoid administration at all costs.
Creditors have agreed to a "standstill" accord to give Leeds more time.
It leaves the club until the end of the week to find the estimated $7.5 million the club needs to survive until the end of the season.
The Premier League strugglers were sufficiently confident that a takeover deal could be worked out to rebuff offers for goalkeeper Paul Robinson and teenage forward James Milner last week.
"I can confirm there's a consortium that I have been asked to represent, but we've signed all sorts of confidentiality agreements," Krasner said.
"However, I can state we are in serious negotiations with both the club and the bondholders which will be ongoing throughout the day.
"Our objective is to avoid administration at all costs. I don't think the public realise just what administration would mean for Leeds United."
Leeds have also insisted that prize asset Alan Smith will not be sold, despite the marked reluctance of the first team squad to agree to defer part of their wages.
Such a move would tide the club over to the end of the season without any player sales, giving Leeds the best possible chance of avoiding relegation, which will almost certainly mean administration with or without a takeover.
