Exclusive: Takeover attempt loses lead financier with winding-up court date looming

Kevin Mundie, a senior executive at Certified Oilfield Rentals (COR), had been the lead financier in a consortium hoping to save the Owls from the threat of administration but he has now withdrawn his interest entirely.

The remaining group of investors are said to remain interested in putting together a takeover bid and intend to make a public statement in the near future.

But the loss of Mundie, whose business reputation Owls' chairman Howard Wilkinson placed great faith in, will be a major blow and could leave Wednesday hoping that interest from other avenues now comes to fruition.

A spokesman for Mundie said: "For business and personal reasons which are wholly unconnected with the club, Kevin Mundie and COR have regrettably felt they must withdraw from further involvement in the proposed purchase.

"Other consortium members are continuing to discuss further involvement and a statement will be made shortly."

The Mundie consortium had appeared to be on the brink of concluding a takeover three weeks ago when the Owls released a statement that 2m of funding was to be immediately advanced to the club to ease crippling cash flow problems. The 2m was seen as a down payment ahead of a full takeover.

But the money never materialised and the bid ran into more trouble when it was revealed that a former sports agent, jailed for 16 months for financial crime last year, had taken part in talks surrounding the deal and met Wilkinson.

The consortium stated Russell Morgan would not be providing any funding or taking any part in the financial or management side of the investment and he was subsequently completely sidelined from any involvement.

Wednesday are facing a winding-up petition over unpaid tax which is due to be heard in the High Court on November 17.

In September, the club's bank, the Co-operative, provided 800,000 to bail the Owls out on the eve of a court hearing over a first winding-up petition from HM Revenue and Customs.

The bank is thought to be reluctant to find what is understood to be in the region of 1m to rescue the Owls a second time and without a takeover Wednesday could face administration.

But a senior club source source has today said: "Today's developments are being painted in certain quarters as a major blow for the club.

"But the reality is that we are in same position as we were two weeks ago, namely that a number of parties are in detailed talks with the Co-operative Bank over a long-term investment plan for Sheffield Wednesday.

"Everybody involved in this process wants to see a successful conclusion that ultimately leads to the end of the club's financial worries."

In a separate development, former Owls chairman Dave Allen told the Yorkshire Post he was prepared to give away his remaining shareholding for free and would give up his entitlement to interest on outstanding loans in the club.

Allen, now majority owner at Chesterfield Football Club, insisted he presented no block to investment in the club but added that, in any case, he had not been approached by any investors over a potential deal.

The casino owner retains a 9.5 per cent shareholding in Wednesday and is owed in the region of 2.4m, which includes interest on outstanding loans of 1.5m.

He said: "If I get the 1.5m I loaned to the club back, without interest, I will give them my shares. In total, I'm owed about 2.4m but I'm prepared to take 1.5m."

Allen said he was prepared to take staged payments and did not require the full 1.5m up front. He said his shareholding had cost him around 500,000 to acquire.

The former chairman made his comments after supporters groups suggested the club's major shareholders should offer their shares in return for an investor settling the debt with HM Revenue and Customs.

Fans' group Wednesdayite, which owns just over 10 per cent of the club's shares, said it would ballot its members if a firm offer was made.