Leeds United Football Club

• Nickname:The Whites
• Founded:1919
• Manager:Neil Warnock

• Ground:Elland Road
• Capacity:40296

Leeds face legal challenge

03 Jul 2007 - 16:42:26

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The Inland Revenue has confirmed it will launch a legal challenge to chairman Ken Bates' attempt to buy back Leeds United.

Bates placed the club into administration following their relegation to League One in early May, but immediately formed a new company to buy the club back.

At a stormy meeting last month the club's creditors narrowly agreed a 1p-in-the-pound offer as part of a Creditors' Voluntary Agreement (CVA) but had the option of mounting a legal challenge within 28 days.

The Inland Revenue, who are owed almost £8million in unpaid takes, have now decided to launch a challenge, despite Bates upping his offer to 8p-in-the-pound earlier in the week in a bid to avoid any such legal action.

"The club can confirm that the Inland Revenue have served notice of their intentions to challenge the CVA," confirmed a Leeds statement.

"We remain confident of a positive outcome despite this disappointing news and will carry on with business as usual in the meantime."