<table cellspacing="0" cellpadding="0" width="629" border="0"><tbody><tr><td colspan="3"><div class="mxb"><div class="sh">HM Revenue to challenge Leeds Utd </div></div></td></tr><tr><td style="width: 416px" valign="top"><font size="2"><table cellspacing="0" cellpadding="0" width="203" align="right" border="0"><tbody><tr><td><div> </div></td></tr></tbody></table>Ken Bates' proposed buyback of Leeds United is to be challenged by HM Revenue & Customs. The announcement comes a day after the news that the administrators at the football club had persuaded Mr Bates to raise his offer to creditors. </p> A Leeds United spokesman said it did not yet have all the details but it was "confident of a positive outcome". </p> Leeds went into administration on 4 May, before Mr Bates narrowly won backing to buy it back on 4 June. </p> 'Business as usual' </p> While Mr Bates, the club's chairman, was able to get the backing of creditors to buy back the club, it seems HM Revenue & Customs, which is owned £7.7m in unpaid taxes, was far from happy. </p> Its challenge to the plan was made just before a 1600 BST deadline. </p> "The club can confirm that the Inland Revenue have served notice of their intentions to challenge the CVA [Creditors' Voluntary Agreement]," said a Leeds United spokesman. </p> "We do not have all the details as yet and do have a number of options available to us. </p> "We remain confident of a positive outcome, despite this disappointing news, and will carry on with business as usual in the meantime." </p> Monday's announcement that Leeds was increasing the amount of money it was offering creditors from 1p in the £1 to 8p has been seen by commentators as a failed move to try to persuade HM Revenue & Customs not to call in the lawyers. </p> 'Liquidation risk' </p> With its debts of £35m, Mr Bates has previously claimed that any legal challenge by HM Revenue & Customs could force the club into liquidation. </p> Earlier on Tuesday, he told Yorkshire Radio: "If there is a legal challenge, it could take two or three months to get to court and be decided. </p> "In the meantime, who is going to pay to run the club?" </p> Leeds United's administrators at accountancy giant KPMG have insisted throughout that they have acted within the laws of insolvency. </p></font></td></tr></tbody></table>
