Leeds consortium continues talks
LONDON, Jan 28 (Reuters) - A consortium of local businessmen in negotiations with debt-laden Leeds United said on Wednesday it was confident of reaching a deal to rescue the club.
Leeds, who have debts of over 80 million pounds ($146 million), have until Friday to secure a rescue plan to avoid going into administration.
"We're at a very delicate stage," the consortium's representative, Gerald Krasner, told Reuters on Wednesday.
"We are working on it every day -- it was 11 o'clock last night when we finished. We are still confident a deal can be done and our objective is to avoid administration."
Chief executive Trevor Birch needs to find five million pounds for the Premiership's bottom club to survive until the end of the season.
If he cannot find the funds or if a takeover is not accepted by the creditors, the club will be forced into administration, a form of creditor protection.
A source close to the negotiations said: "The bondholders are in constructive negotiations with the company. It's a day to day thing this week."
On Wednesday the club received 1.5 million pounds from Manchester United as a final settlement for the 30-million-pound transfer of defender Rio Ferdinand, less than half the full amount due.
Krasner, a specialist in corporate recovery, restructuring and insolvency at Bartfields Chartered Accountants in Leeds, said negotiations with Leeds were set to continue on Wednesday.
However, with thick snow in northern England, he was unsure whether all those involved would be able to get there and said the talks may have to continue by telephone.
Krasner said he could give no further details on the negotiations, nor the other members of the consortium, who have all signed confidentiality agreements.
Leeds were given a reprieve on Monday when their standstill agreement with creditors was extended until 1700 GMT on Friday.
Birch has asked players to help the club's survival bid by agreeing to a wage deferral of up to 30 percent. The squad said they would only accept the idea as a last resort.
The club is reluctant to sell players as their priority is avoiding relegation from the lucrative premier league. The team, already weakened after the exodus of a raft of top players, is rooted to the bottom of the table after winning only four of their 22 league games this season.
Champions League finalists in 2001, Leeds made losses of almost 50 million pounds last year after a high-risk player buying spree.
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