Leeds United In the case of Leeds United’s 2007 CVA proposal, HMRC was in line to receive around only £77,000 of the more than £7m tax bill it was owed, while Leeds’ football creditors would receive full repayment. HMRC refuses to agree to be paid only a proportion of the tax it is owed, while under the football creditors rule players’ wages and any money owed to other clubs are being paid in full. As a result HMRC tends to vote against CVAs proposed in relation to clubs. HMRC therefore challenged the Leeds CVA (which had the requisite majority agreement), which led to the administrators collapsing it and being forced to complete a private sale. Due to this legal challenge Leeds incurred the automatic 10-point penalty when the club went into ­administration, then accepted a further 15-point deduction in League One when it failed to achieve a CVA (HMRC did not eventually follow through with its challenge to the CVA). http://www.thelawyer.com/paying-by-the-rules/1003055.article CVA was approved for Leeds Utd, same as Rangers...Ooops.
No loose ends were left. For 6 years Leeds fans DID NOT know who owned the club. They still DO NOT KNOW who owns their ground or their training academy. They have still not paid HMRC. The only reason they achieved the necessary 75% was because Ken Bates "borrowed" that same amount from an offshore-company that would only agree the CVA if Ken Bates remained as chairman - This same company miraculously wiped off all that debt. This is STILL being investigated now - so to say no loose ends were left is pretty moronic even by your sloppy standards
Leeds were able to move all assets and liabilities from the old co to the newco. This is the idea bill miller had, ie newco let the oldco sort out a cva an then when agreed move the old co back to the new co to keep your history! You ran him out though
Well it was posted by you - are you saying that you just did a copy and paste from wiki again And yes - Leeds did move to a Newco without a CVA Leeds United CVA Challenge (copy and pasted Dev stylee) One day before the 28 day period was due to end, Bates altered his offer to ensure it was not challenged. He altered the clause stating that if Leeds made the premiership in five years then the creditors would receive an extra 30p in the pound, extending this period of time to 10 years, and increased the amount they would receive from 1p in the pound to 8p in the pound straight away.[24][25] The 28 day period was due to come to a close on 3 July 2007 at 4pm (BST).[25] With just minutes to spare HM Revenue & Customs challenged the CVA. This left a very uncertain future and possibly liquidation of the club.[26] Bates had previously stated "If there is a legal challenge, it could take two or three months to get to court and be decided. In the meantime, who is going to pay to run the club? So far it's been funded by the 'new Leeds', but if there is a challenge, the 'new Leeds' won't do it because it's a risk. The implications are that the club would close down. It would mean liquidation. Leeds United would cease to exist, and the loss of 500 jobs would be a further drain on government resources."[27] With the intention to challenge the CVA announced by HMRC, Simon Franks announced he was determined to buy Leeds United through his Redbus investment vehicle. He commented "We are absolutely committed to gaining control of Leeds United and to rebuilding the club, We have already told the liquidator that we will cover short term liquidity problems and that will be standing by our bid and will increase it given certain information. Our bid was significantly better than Ken Bates' and we are in a position to move very quickly if we are offered the right commercial terms."[28] Following the challenge by HMRC the club was put up for sale by KPMG, with only offers before 5pm (BST) on Monday 9 July 2007 being accepted.[29] Former Leeds commercial director Adam Pearson also stated he intended to make a bid for Leeds however Ken Bates has stated that he will take legal action if any other bid than his own is successful.[30] After the deadline had passed it was revealed that Simon Franks and Simon Morris had joined forces to bid for the club.[31] After Much deliberation KPMG revealed that once again they had chosen Ken Bates' bid.[32] The league eventually sanctioned the sale to Bates without the club going through a CVA under the "exceptional circumstances rule" but imposed a 15 point deduction due to not following football league rules on clubs entering administration.[33] On 31 August 2007 HMRC decided not to pursue their legal challenge any further therefore accepting Bates' final offe
But - Leeds renegaded on this final offer - They have only paid out £154,000 of the £7.7million it owes in tax Read more: http://www.thisismoney.co.uk/money/...e-taxman-40m-written-debts.html#ixzz1xgIjcnS9
The Portsmouth experience was quoted on Newsnight as one of the reasons HMRC knocked back Rangers CVA - they only received a pittance of what they were promised in the CVA.
Read the last line of your last post. Point 33. Hmrc decided not to challenge the cva. The £154k paid was Leeds offer v the £7.7m bill. The offer was accepted. Cva stood. Oldco not liquidated
Fucking dumb taffies. They're just jealous because we can attract tourists from all over the world while all they have is drunk tinks from Liverpool having stag and hen parties in Cardiff on Saturday nights.
What has that got to do with remaining the same club? So Leeds creditors agreed the CVA but this was haulted by HMRC. They shifted everything over to a newco and left the debt behind. Why are you telling me something I have already posted.
