Leeds United: Club clear £1.5m Enterprise Insurance debt

Elland Road, home of Leeds United

Leeds United's shirt sponsor has withdrawn a winding-up petition against the club after a £1.5m debt was repaid.

Enterprise Insurance, whose managing director Andrew Flowers was part of a group trying to buy Leeds, were due to contest the debt in court on 17 March.

Leeds' owners GFH capital had said they would challenge the winding-up order but have now cleared the debt in full.

The Football League is in talks with Leeds over the proposed £25m takeover by Italian businessman Massimo Cellino.

Also the owner of Italian side Cagliari, Cellino has agreed to buy a 75% stake in the club after Sport Capital consortium - of which Flowers was a part - could not raise the funds to take over.

The Financial Times reportedexternal-link that the petition to recover Enterprise's debt was filed on 29 January, the day after Sport Capital's bid fell through.

Leeds borrowed £1.7m from Gibraltar-based Enterprise Insurance in 2012, at a 7% interest rate, with the debt due for repayment in 2015.

On Thursday, Enterprise's solicitor said the company had been left with "no choice" but to seek a legal outcome.

Leeds' owners, GFH Capital, have insisted the Championship club will not go into administration while they are in charge.

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