Jun 7 2007 - Yorkshire Evening Post

The buy-back deal agreed between KPMG and Bates, who placed United in administration on May 4, is under heavy scrutiny with a growing number of the club's creditors considering whether to mount a legal challenge before the sale is completed at the start of next month.

Individuals and businesses owed money by Leeds have a 28-day window in which to contest the Company Voluntary Arrangement (CVA) drawn up by Leeds United Football Club Limited, which was narrowly accepted by creditors on Monday morning, and three separate groups are understood to be assessing the possibility of preventing the takeover.

The Inland Revenue, who are owed close to £7m but would receive around £70,000 through Bates' offer of a penny in the pound to unsecured creditors, are "considering the implications" of the CVA, while the chairman of one of the companies who bid for control of Elland Road last month is also threatening to fight the sale in court.

Simon Franks, the founder of London-based rescue firm Redbus, confirmed today that a challenge from his company was "a real possibility".

Redbus Group submitted proof of funds to KPMG ahead of last week's CVA meeting, which Franks attended, but his attempt to purchase United was blocked by the buy-back agreement reached between Bates and United's administrators.

Redbus are privately owned, and specialise in reviving the financial fortunes of struggling businesses. They were previously involved with Charlton Athletic as the London club's shirt sponsors.

At least four other offers from different consortiums were also rejected by the creditors' ballot, which showed a 75.20 per cent vote in favour of Bates and Leeds United Football Club Limited.

Franks, 35, insisted he was confident that a legal challenge could prove successful, but admitted his willingness to contest the deal in court was being tempered by his fears over the damage a disrupted pre-season would do to United's forthcoming campaign in League One.

Leeds are still hampered by a transfer embargo imposed by the Football League and are unlikely to have the restriction lifted before Dennis Wise's players return for pre-season training on July 2.