Leicester City put into administration

Gary Lineker is leading a rescue consortium

Leicester City have been put into administration while the stricken football club seeks financial rescue.

Leicester have made a promising start to the season despite their financial woes

The club said on Monday that it had applied for the measure after it failed to reach agreement with its creditors.

Mr Justice Park, granting the administration order, said that the alternative of putting the club into liquidation would be "a disaster".

BBC television presenter and former England footballer Gary Lineker is leading a consortium bidding to take control of Leicester.

The club is thought to have debts of about £30m ($46.4m).

Protection

Administration will protect the club from creditors seeking repayment of debts and allow it to re-structure its finances.

Mr Dargan: Looking forward to talks with Gary Lineker's consortium

Administrators Nick Dargan, Dominic Wong and Andy Peters from Deloitte & Touche have been appointed to try and sort out the money problems and find a buyer for the club.

"The existing management team have worked incredibly hard to achieve a solvent restructuring," said Mr Dargan, who earlier this year was appointed administrator to ITV Digital when the broadcaster collapsed.

"However, the group's financial position is complex and it became clear that a successful conclusion to negotiations wouldn't be achieved without the protection administration brings.

"We welcome the news that at least one consortium is expressing a desire to invest in the club and we look forward to opening discussions with it," he added.

"Leicester City is a fantastic club, with a great new stadium and excellent supporters and we will do all we can to help Micky Adams and the Leicester City team build on their excellent start to the season."

Rescue bid

Gary Lineker began his professional career at Leicester City and is now heading a consortium to take control at the club.

The consortium also includes club chairman Martin George and Carphone Warehouse chief operating officer David Ross.

Leicester City were relegated to the First Division last season and have spent the past three months trying to reorganise their debts.

The club has suffered from the collapse of the League's TV deal with ITV Digital, and from the depressed state of the transfer market which means it has not been able to raise as much as it wanted through player sales.

Last week its players agreed to defer their wages to help cut costs.