Let's all laugh at Leeds Part 1,123

[bocadillo]

What is this all about: http://www.leedsunited.com/page/NewsroomDetail/0,,10273~1066701,00.html

CVA = Company Voluntary Agreement. A CVA is a deal between an insolvent company and its creditors; it forms a contract which allows the company to repay some or all of its debts from future profits. It also allows a company to go on trading when it might otherwise have to go out of business.

A certain percentage of the creditiors have to agree to the CVA - I think it's 75% of the money owed. In the case of Leeds United the amount was initially set at 1p in the £ and they managed to get the necessary number of creditirs to agree to it. This has since been increased to 8p in the £, with more to come on a conditional basis.

The Inland Revenue - isn't now HMRC (Her Majesty's Revenue & Customs)? - are obviously not happy about it and have appealed against the CVA.


Pity innit?

 

[OldGit]

The revenue are not happy that they (ie we!!) are only getting £70,000 of the £7million of unpaid tax, with the possibility of a little bit more if Leeds get back to the prem within 5 years.

It is a lot smaller proportion of the debt than has been the case in other rescues from administration.

I assume they will challenge it on the grounds that the vote on acceptance was not all it seemed to be.

 

[Matt_B]

The revenue are not happy that they (ie we!!) are only getting £70,000 of the £7million of unpaid tax, with the possibility of a little bit more if Leeds get back to the prem within 5 years.

It is a lot smaller proportion of the debt than has been the case in other rescues from administration.

I assume they will challenge it on the grounds that the vote on acceptance was not all it seemed to be.

I would gladly give up my £6,930,000 to see then not make it back to the premin 5 years!

 

[drew]

Even their website is third tier now, hahahah.

 

[bocadillo]

I would gladly give up my £6,930,000 to see then not make it back to the premin 5 years!

But this appeal is even better than that. If the HMRC's challenge is upheld, it will mean that there is no CVA and Leeds will be back in administration - with all the dangers that that brings to their continued existence.

 

[OldGit]

And we might miss the spectacle on 25 August of Nottingham Shrubbery v Leeds Disjointed.

 

[four king power]

But this appeal is even better than that. If the HMRC's challenge is upheld, it will mean that there is no CVA and Leeds will be back in administration - with all the dangers that that brings to their continued existence.

Do we really want them to go out of business?

Although they are the scum of the earth and some of their fans are moronic beyond beleif, there are a lot of normal fans who just enjoy following their football team and have the misfortune of living in Leeds. Rotting in League 1 will do me just fine

 

[Biff]

Do we really want them to go out of business?

Although they are the scum of the earth and some of their fans are moronic beyond beleif, there are a lot of normal fans who just enjoy following their football team and have the misfortune of living in Leeds. Rotting in League 1 will do me just fine

yes. f*ck em

 

[drew]

yes. f*ck em

Short and sweet, i like it.....:icon_lol:

 

[Matt_B]

But this appeal is even better than that. If the HMRC's challenge is upheld, it will mean that there is no CVA and Leeds will be back in administration - with all the dangers that that brings to their continued existence.

If they go back into admin, is it a new admin, or a revert to the same admin? If it is a new one, do they get deducted 10 points next season?

 

[Steven]

What is this all about: http://www.leedsunited.com/page/NewsroomDetail/0,,10273~1066701,00.html

Some words I thought I would never say, I love the Inland Revenue.

 

[SwedeFox]

You would think that Leeds have had enough of misfortunes the last few years, but there are more to come. If karma exists, Peter Ridsdale and Ken Bates must have had two interesting previous lives! :icon_eek: Or can't they just be in charge of a football club? More likely perhaps.

 

[bocadillo]

If they go back into admin, is it a new admin, or a revert to the same admin? If it is a new one, do they get deducted 10 points next season?

Nice idea - but I would expect it to be the same admin, on account of the fact that the basis for them coming out of admin doesn't hold.

 

[SJN-Fox]

Whilst this appeal is pending I think that they should have a transfer embargo imposed upon them. How can they only afford to repay 8% whilst at the same time be spending money on players, fees and wages. That is not only immoral (sp) it should also be illegal.

After all, the football league were only too quick to curtail our activities. Why should Leeds be any different.

 

[SwedeFox]

I don't think they are allowed to sign players until the judgement is decided.

 

[SJN-Fox]

I don't think they are allowed to sign players until the judgement is decided.

Well, according to what Master Bates was saying in todays papers, an embargo would only come into play if they were to go into admin again.

 

[Dour]

Well, according to what Master Bates was saying in todays papers, an embargo would only come into play if they were to go into admin again.

Well, since they won't even be allowed to play in League One until this is sorted, an embargo is fairly meaningless. No player is going to join them without at least the prospect of some sort of league football.

Reckon this'll be sorted with RedBus or someone else taking over and paying off the creditors (with an additional behind the scenes bung to Bates).

 

[Lako42]

lovely stuff

 

[Nottingham Fox]

From Leeds OS

COURT DATE

A court date has been set for September 3 to hear the HMRC's challenge to the CVA, following a directions hearing in Leeds on Friday morning.

It is obviously disappointing that this will take place after the start of the football season.

The club will now discuss all available options with the relevant parties, including administrators KPMG.

 

[SJN-Fox]

This from the BBC

http://news.bbc.co.uk/1/hi/business/6277752.stm