Leeds United have secured a temporary lifeline after reaching an agreement with their major creditors which should ensure they are not forced to call in the administrators.
Deputy chairman Alan Leighton is also expected to confirm he is stepping down from the board to avoid any accusations that he may have a conflict of interests should he consider leading a takeover bid.
An agreement is believed to have been reached with the three biggest creditors, giving the club more time to restructure their finances. Leeds are expected to be given until mid-January to try to sort out their debts by their major creditors.
Leighton has pledged to loan the club £2.2m, but is also looking for other investors to come forward.
Meanwhile, the role of Sheikh Abdulrahman bin Mubarak Al-Khalifa’s negotiations with Leeds remains unclear.
He told the Bahrain daily Al-Ayam yesterday: “We are working hard with some interested parties in order to find a positive outcome to the club’s financial crisis, near the upcoming weekend or so we hope.”
There have been doubts raised about the Sheikh’s own financial standing with observers suggesting he does not have the resources to buy the club outright nor the cash to satisfy the creditors. However, it is understood that he has been exploring a number of options including an attempt to put together a consortium to buy the ailing club.