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Takeover turns nasty as Flowers issues Winding Up Petition
04/02/2014
As rumours continue about the various bids and takeovers surrounding Leeds United, a new fact has emerged this evening regarding one of the original bidders, Andrew Flowers.
Flowers was part of the original group that were granted exclusivity back in November, and who fell out of the process on January 29th when he issued a statement condemning the actions of GFH-C in entertaining talks with Massimo Cellino. Since then he has also stated that Pinnacle Insurance, who sponsor Leeds would be withdrawing support following the McDermott sacking (subsequently nullified).
It was known Flowers had pumped money into the club to support GFH-C with working capital whilst the sale went through. It has now been revealed that Flowers has served a demand for that money, and a subsequent Winding Up Petition. This was issued back on January 29th, when his proposed take-over failed.
In essence, this is an aggressive act against GFH-C, asking for courts to rule on whether the company should be allowed to continue to trade. A court can apply for the bank account and assets to be frozen pending a court hearing (scheduled for March) and this action may prevent the company from selling the club to any other party.The move has been met with anger by some fans, but is largely seen as a tactical move by a businessman who has used his own funds to support the club whilst a takeover was completed.
There is no real threat to Leeds United and its existence, but GFH-C may look to for protection with Administration and subsequent points deduction.If the matter did go to court, there are several options, at worst being ordered to sell the company to the highest bidder, which is what everyone wants anyway!
Whilst Massimo Cellino may want to purchase the club, there has to be some understanding and sympathy with Flowers who has invested time and money in trying to purchase the club, just for his offer to be gazumped at the last moment.
As time moves on, GFH-C are looking increasingley to blame for the whole fiasco, courting one businessman and taking his money, agreeing a seperate deal with another businessman and taking their money. Informing the second his take-over was successful when it wasn't and allowing the fiasco we saw last Friday and Saturday, all the time whilst running Leeds United at a loss.