Leeds granted extension on repayments

Leeds United have been given a one week extension on the debt repayments that chairman Trevor Birch hopes will prevent the club…

Leeds United have been given a one week extension on the debt repayments that chairman Trevor Birch hopes will prevent the club falling into the hands of administrators.

In a statement to the Stock Exchange, Birch revealed the week-long extension to their `standstill agreement' with the principal creditors who are owed a combined £82million.

Birch now seems certain to turn to the club's highly-paid stars and ask them to defer a portion of their wages - likely to be around 30 per cent - until the end of the season, which would provide Leeds with the £5million needed to see them through the next four months.    

Birch has also managed to agree the possibility of a further two-week extension up to February 6th, however, that will only be allowed on certain financial conditions being met.

The statement to the Stock Exchange tonight read: "The Board of Leeds United PLC announces that the company's principal finance creditors have today agreed to extend the standstill period (announced on 4th December 2003) by a week, to midnight on 26th January 2004.

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"This agreement also provides for a further two-week extension to 6th February 2004, conditional on achievement of certain financial and other covenants."

Birch has long maintained a healthy relationship with the creditors - bondholders MetLife and Teachers in the United States and British firm M&G, along with player-leasing agents Registered European Football Finance Ltd - and it is that which has led to the stay of execution.

Yet while the club have confirmed talks have been held with "interested parties" in the last seven weeks since the initial agreement was arranged, no-one has so far stepped forward.

The crux to Leeds' problem remains their plight at the foot of the Barclaycard Premiership, for Leeds have slipped a place in the intervening period and are now closer to being relegated to the Nationwide League.