With debts of around 80 million pounds ($138 million), the club -- which is at the bottom of England's Premier League -- has warned it might to have call in administrators.
"The board will seek to identify parties who would be prepared to make a substantial investment in, or offer for, the business, working in conjunction with the group's restructuring advisors," Leeds said in a statement.
The club said its shareholders might not realise value for the equity at the current share price, which closed up 8.11 percent at 4.995 pence.
It warned again that it could be forced into administration if it failed find financial supporters.
Leeds confirmed however that it had been approached by a company associated with Bahraini Sheikh Abdulrahman Bin Mubarak Al Khalifa, widely reported to be a supporter of the club.
The member of Bahrain's royal family said on Wednesday he was exploring ways to
"In addition, Allan Leighton has resigned from the board with immediate effect to avoid any conflict of interest should he decide to become involved in any future funding or purchase of the business," Leeds said.
Leeds said the standstill agreement was reached with the providers of 60 million pounds of senior unsecured notes and Gerling Insurance, the credit insurer of the Registered Football Finance Ltd which provides player finance lease agreements.
Some investors had expected a possible wave of takeovers for England's debt-ridden soccer clubs after Russian billionaire Roman Abramovich bought Chelsea, but the high debts of many teams have made similar deals tricky.
League champions Manchester United are often the subject of intense takeover speculation, but Manchester are far more attractive than their rivals as one of the few clubs that is actually making a profit.
In October, Leeds reported a pre-tax loss of 49.5 million pounds for the 2002-03 financial year. Like many clubs, its debts and losses have risen due to players' wages.