Sky Bet Championship: Leeds United settle shirt sponsor debt
Leeds' shirt sponsor has withdrawn its winding-up petition against the club after announcing it's been repaid the debt.
Last Updated: 27/02/14 10:19pm
Enterprise Insurance had been due to challenge the football club in court on March 17, after loaning Leeds a seven-figure sum in 2012.
But it confirmed on Thursday it has settled its money dispute with Leeds, who paid the full sum claimed by Enterprise Insurance, plus interest and the costs of a hearing at Manchester's High Court Chancery Division. The money owed to Leeds was paid to the shirt sponsor prior to the hearing, Enterprise Insurance said.
Enterprise Insurance managing director Andrew Flowers recently abandoned a bid to buy the West Yorkshire club.
Solicitor Michael Ozon, representing Enterprise Insurance, said in a statement on Thursday: "Enterprise Insurance acted responsibly and with great care for the club. It offered to withdraw its petition on the basis that the club agreed to comply with its contractual obligations in relation to the payment of certain monies due. Despite repeated requests, no undertakings were given and the club simply failed to engage. Enterprise was left with no choice but to take action seeking injunctions to compel the club's owners to comply."
Italian Massimo Cellino is awaiting the go-ahead from the Football League to take control at Elland Road.
The Football League confirmed on Wednesday it is still in talks with Leeds over the club's proposed £25million takeover by the businessman.
Cellino's company Eleonora Sport Ltd exchanged contracts with Leeds' owners Gulf Finance House Capital on February 7 for 75 per cent of the club's shares and the Cagliari football club owner has since been waiting for the Football League's approval.