A statement to the Stock Exchange revealed Leeds' desperate attempts to stay afloat.
It said: "The directors have been negotiating the first phase of a complex debt restructuring of the group's finances with its principal finance creditors to provide the group with additional working capital and to give it time to implement a more permanent restructuring plan.
"We also referred to a commitment through a share issue to inject £4.4m from Allan Leighton and ARM Holdings Group Ltd.
"Unfortunately, after a long period of constructive discussions, negotiations have failed to reach a satisfactory conclusion.
"As a result, it has been decided not to go ahead with the planned subscription for shares.
"Nevertheless, the company continues to be in constructive discussions with a view to providing additional working capital and to give it time to implement a more permanent restructuring plan.
"But, if the negotiations referred to above are unsuccessful, the directors may be forced to seek the protection of an administration order.
"A further announcement will be made as soon as the Company is in a position to make one."