Leeds United have reached a deal which will lift a winding-up order from the club’s former parent company, Leeds City Holdings (LCH).
LCH, which holds a minority stake in Leeds United, is currently in liquidation after the High Court approved a winding-up petition served on it by one-time club solicitor Mark Taylor.
Taylor brought the petition over a bill of £45,000 owed for work carried out by him in 2012, around the time that Leeds United were sold by Ken Bates to Gulf Finance House.
LCH – incorporated in April 2006 – was United’s parent company for most of Bates’ reign as club chairman and owner but the majority stake controlled by Massimo Cellino and his family is now held by Eleonora Immobiliare SPA, an Italian firm based in Milan.
Taylor’s winding-up order was challenged in court a fortnight ago and the case adjourned.
The two sides, however, are understood to have struck an agreement in the meantime which will settle their dispute.
The deal is now waiting to be signed off by the High Court.
United disputed Taylor’s original claim, with current club chairman Andrew Umbers saying: “The debt is a solicitor’s bill which is incapable of founding a winding-up order.
“LCH is now taking the appropriate action.”