Sunday, 26 July 2009

Liverpool’s owners unable to meet Friday’s loan deadline

Liverpool Football Club’s American owners, Tom Hicks and George Gillett Jr. were unable to secure an extension to their £350 million loan before Friday night’s deadline.

The co-owners, had reached an agreement in principle two months ago with the Royal Bank of Scotland (RBS) and Wachovia about refinancing their existing loans. However Friday night’s deadline passed with Hicks failing to provide the guarantee, “a sum believed to be in the region of £70 million, that Wachovia had requested,” claims The Times.

“That deadline has been described by sources as “fluid”, with negotiations set to continue into next week,” adds the story.

Gillett has raised capital through the sale of his ice hockey franchise the Montreal Canadiens, However the story suggests Hicks who’s “sporting and business empire has been hit hard by the global credit crunch, has been forced to request extra time in his attempt to satisfy Wachovia.” However the American businessman “is said to be optimistic that a solution will be found.”

Uncertainty over the ownership of the club is bound to continue, even if Hicks and Gillett succeed in securing another short-term loan.

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