Leeds United: Club clear £1.5m Enterprise Insurance debt
Last updated on .From the section 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Leeds United's shirt sponsor has withdrawn a winding-up petition against the club after a £1.5m debt was repaid.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 reported 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.