Petition is dropped in court as Leeds United pay back loan

Winding up order against Leeds has been withdrawn.

The petition from Enterprise Insurance – served on Leeds on January 29 – was dropped yesterday after a hearing at the High Court in Manchester.

The matter concerned a loan of £1.5m provided by Enterprise Insurance in 2012.

Leeds repaid the sum plus interest yesterday ahead of the hearing at which they were ordered to meet the costs of the legal case.

In a statement, Enterprise Insurance said it had taken action against Leeds after “the club’s solicitors claimed in correspondence that there was no debt to Enterprise”.

Leeds’s stance had been that the attempt to reclaim money owed was “an abuse of legal process” and prompted the petition for a winding-up order.

Enterprise’s solicitor, Michael Ozon, said: “While we are pleased the court ruled clearly in favour of Enterprise, it is regrettable this matter had to end up in a hearing before the court.

“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.”

Andrew Flowers, the company’s managing director and a man involved in a failed bid to buy Leeds last month, said: “Not only did they refuse to accept liability for the substantial sums owed but they challenged our petition on the grounds that it was an abuse of process.

“To add insult to injury, (Leeds) then told the High Court (yesterday) that Enterprise should have sought to appoint a provisional liquidator instead of pursuing an injunction.

“I was not prepared to act in this way out of a genuine concern and repercussions for the club.

“While I am bound to protect our company’s interests, I am nevertheless a lifelong supporter of Leeds United and would not want to damage the club in any way.”

The winding-up petition against Leeds was due to be heard in the High Court on March 17, but the case has been cancelled.