Taxman to challenge Leeds deal

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Bates placed the club in administration on May 4, but with the administrators' approval immediately formed a new company to buy back the club.

The club's creditors narrowly accepted his initial 1p-in-the-pound offer at a controversial meeting last month, but had the option of mounting a legal challenge within 28 days.

The Inland Revenue, owed £7.7million in unpaid taxes, were left angry by the Creditors' Voluntary Agreement (CVA) and launched an appeal before Tuesday's 4pm deadline.

Leeds increased their offer to the Inland Revenue from £77,000 to £616,000 on Monday in a last-ditch attempt to avoid a legal challenge, which Bates claims could force the club into liquidation.