Leeds face winding-up order from shirt sponsors

Leeds United will go to court to contest a winding-up order over an alleged unpaid debt of £1.8m owed to their shirt sponsors, according to the Daily Mail.

Enterprise Insurance have issued the order following the failed takeover of the side by the sponsor’s managing director Andrew Flowers last week.

“The winding up petition issued by Enterprise Insurance, a sponsor whose managing director, Andrew Flowers, claims to support the club, is misconceived and an abuse of legal process. It is being vigorously contested by the club’s lawyers,” said a statement on the club’s website.

“As there were no valid grounds to issue the petition, we can only assume that Mr. Flowers is seeking to influence the deliberations of the club’s owners and management in relation to the take-over negotiations.”

The proposed takeover by Sports Capital involving Flowers fell through due to a lack of financial backing.

Italian club owner Massimo Cellino has since agreed to buy a 75% share in the club with current owners GFH Capital, subject to the deal being approved.

The 57-year-old has insisted that part of their deal includes settling the debt with sponsors Enterprise Insurance.

In 2012 Leeds borrowed £1.7 million from Enterprise Insurance at an interest rate of 7%, a loan that was due to be repaid in 2015.

“Under the ownership of GFH Capital Leeds United has always met its financial obligations, and it will continue to do so,” the club added.

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