Re: Merged Topics: Club Refinance Thread
[quote author=Judge Jules link=topic=41783.msg1176380#msg1176380 date=1284740411]
[quote author=localny link=topic=41783.msg1176363#msg1176363 date=1284738872]
Reports just in Hicks Failed in Refinancing Attempt - Soccernet/Harry harris
http://soccernet.espn.go.com/news/story?id=823998&sec=england&cc=5901
[size=11pt]Liverpool reject Hicks power play[/size]
By Harry Harris, Football Correspondent
September 17, 2010
Liverpool have rejected a proposed refinancing strategy from co-owner Tom Hicks that could have given the American increased control at Anfield
Liverpool chairman Martin Broughton turned down Tom Hick's proposal.
Hicks personally delivered his proposal direct to the Liverpool board in a showdown meeting ahead of the club's Europa League tie, and was told that his plans were not acceptable.
In fact, Hicks was left in no doubt of the board's resolve to find new owners and end his turbulent reign - alongside fellow American George Gillett - at the Premier League giants.
Hicks wants to buy out the £237 million Royal Bank of Scotland debt which is threatening to end his joint ownership of the club when the facility expires on deadline of October 6. He is hoping to raise funds from US banks to raise the funds to buy out RBS, possibly using the players and stadium as collateral.
Hicks has moved to thwart the possibility of RBS temporarily taking control of Liverpool and selling it off at a rock bottom price, far less than Hicks and Gillett believed it to be worth when they originally put the club up for sale at £800 million a year ago.
The price has since plummeted and might now be worth as little as £150 million. With no creditable buyer yet in public sight, Hicks is trying desperately to retain control, if not total control, and hold out in the hope of finding someone who will pay more later.
With Gillett's finances in a parlous state, and with the possibility that he might default on other loans and ultimately lose his 50% stake in Liverpool, his partner Hicks is attempting to refinance alone and gain total control.
The Liverpool board are having none of that, believing an extension of the Hicks and Gillett ownership, even if it reverts to Hicks, would only prolong the financial misery.
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If this is true, it's great news in a number of ways. Obv.it's a good thing that Broughton has what it takes to play hardball with that fat chancer, but it also suggests that the debt to RBS is owed (on paper at any rate) by the club, in which case Broughton, Purslow and Ayre do have the power to block refinancing, AND it would suggest that they've made their minds up not to be deflected from doing so by threats of legal action.
Please, please let this be true.
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I know mate. right now, it's just Harry Harris and soccernet (crossed fingers, toes, and 'ead)
