Ken
Bates is set to come under more legal scrutiny over the 2007 administration
process of Leeds United as a result of his court action in Jersey.
Redbus Group was the highest cash bidder in the administrator's
auction of the club nearly two years ago. But the surprise decision
by the offshore company Astor Investments to waive a £17.6m
debt owed by Leeds handed control to Bates's consortium.
In the wake of Guardian revelations of attempts in the Jersey
royal court to identify the ultimate beneficial owners of the
offshore companies around Leeds, Redbus has sought legal advice
to discover whether it now has an opportunity to overturn the
decision that led to Bates becoming the owner of Leeds two years
ago.
Redbus is exploring whether it can launch a claim against Astor,
Bates, his Forward Sports Fund investment vehicle or the club
executives who took Leeds United into insolvency and remain at
Elland Road with the new company. Mark Taylor, who is Bates's
solicitor and a Leeds director, has stated: "There is nothing
to investigate."
Those behind the Redbus attempts to take over the club are said
to be still smarting at the failure of the acquisition. Although
that deal was structured with a private-equity partner, it is
believed Redbus has sufficient funding to carry out the purchase
according to the previous terms and to invest in the squad independently
of any third-party involvement.
matt.scott@guardian.co.uk