The Redbus group are considering legal action against Ken Bates over the 2007 administration process.

Redbus were the unsuccessful bidders for the club when Pappa Smurf managed to retain control of the club as we came out of administration in 2007. They actually submitted the highest bid for the club, but lost out when Astor Investments agreed to waive their claim to the £17.6m they were owed, but only if Bates’ bid was successful.

This meant that the other creditors would get a higher payment if Bates kept control, and on that basis, administrators KPMG sold the club back to Bates. Astor’s generosity was all the more surprising when Bates had signed a sworn statement to confirm that he had no connection with Astor.

But as we reported yesterday, as a result of the court case currently taking place in Jersey, it has been revealed that Astor held shares in Forward Sports Fund in 2006, though Leeds claim this connection had been severed by the time the club went into administration. Now Redbus are seeking legal advice to see if they could overturn the decision that to allow Bates to keep control of the club. 

Redbus is exploring whether it can launch a claim against Astor, Bates, his Forward Sports Fund investment vehicle or the club executives who took Leeds United into insolvency and remain at Elland Road with the new company. Redbus are believed to have sufficient funding to buy the club according to the terms of their previous offer, and to then to invest in the playing squad.  

So maybe some good can come of this court case after all, provided it doesn’t lead to yet another points deduction by the league. If Redbus are able to take control of the club and have the resources to take the club forward, then we’d be better off without all the intrigue surrounding Mr. Bates’ rather complex financial arrangements.

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