Owners granted extra time to repay loan

Tom Hicks and George Gillett have been granted a six-month period of grace to repay £350.5m to Liverpool's lenders. Those funds, provided last January as "working capital" to run Liverpool and including £60m towards constructing a new stadium, were due to be repaid or refinanced by 25 January. But the banks – the government-owned Royal Bank of Scotland and the US investment bank Wachovia – have deferred the deadline.

That came following a written request from Liverpool's American co-owners and their holding company, Kop Football, with the new deadline now set at 24 July. "The loan does not mature on 24 January," said an insider involved in the deal.

The Anfield club are currently the Premier League leaders but with £30m in annual interest repayments required, the supplementary income from Champions League participation is critical to their business. By July, Liverpool hope, those revenues will be guaranteed.

Although this provides breathing space in the short term, it is unclear how RBS-Wachovia will deal with the loan in the summer. The loan currently earns little more than 5% a year in interest, despite the risk involved with football clubs. City sources expect that even if RBS-Wachovia agree to renegotiate the debt in July they are likely to demand a very large fee, which will further increase Liverpool's indebtedness.

Another imponderable is the financial health of George Gillett's portfolio. Reports in the US say his Nascar team has been scaling back its activities after a drop in sponsorship. His Booth Creek Management Corp is exposed to the ailing automobile industry as the owner of dealerships. Although both Hicks and Gillett regularly stress their continued commitment to Liverpool, one route out of repaying the debt has now closed. Takeover interest from Dubai has been withdrawn following the collapse in the world economy


http://www.guardian.co.uk/football/2009/jan/05/liverpool-premierleague

Not to worry, we aren't short of potential suitors.

Can't believe that RBS re-financed them though ... after all those e-mails we sent. Wankers.

I'll remain optimistic about this situation (where I can, anyway), and say that they're at least keeping their mouths shut and trying to organise (a) new contract(s).

The original loan was until July but RBS had THE OPTION of asking the yanks to pay it back in January.

Therefore this article is flawed.

No 6 month extension - just the banks haven't called in the repayment early.  And with recommendations by the Government for the banks to be more lenient with business debt this was entirely expected I would have thought.

I still expect SOS to call for a boycott of RBS and it's subsidiaries.  It was what they threatened - surely they have to follow through.

Watch this space.

July will be very interesting.

As I have said before some bank will lend them the money.  Ironically interest rates are now at their lowest and I would have thought, regrettably, that now would possibly be a good time for the Yanks to refinance again.

Not to worry, we aren't short of potential suitors.

Can't believe that RBS re-financed them though ... after all those e-mails we sent. Wankers.

I'll remain optimistic about this situation (where I can, anyway), and say that they're at least keeping their mouths shut and trying to organise (a) new contract(s).

the only thing I remain optimistic about is the institution of LFC ,Hicks & co. are dragging the club through the dregs of financial insecurity and are surviving by the fingertips,it is ironic that measures adopted worldwide to help ailing companies will prove to be their saviour in the short term,that dreaded phrase "short term" appears again but it is the only description that is adequate to describe the actions of Hicks & co.

when will the yanks get the message and sell up if they want to leave with there dignity they have to sell to shareliverpool fc the way the yanks are going we could end up like leeds

July will be very interesting.

As I have said before some bank will lend them the money.  Ironically interest rates are now at their lowest and I would have thought, regrettably, that now would possibly be a good time for the Yanks to refinance again.

Totally agree JD, July will indeed be very interesting.IMO come July with economic instability at its peak, I would expect any bank financing such a big loan to demand persnal guarantees from H&G in the form of cash or assets.As we all know, there is no way that those two gobsh*tes will provide any, I just hope that an interested party is waiting in the wings and that the RBS does not gain ownership of our club.I don't fancy having Ken Bates as our new owner.I will be saving my pennies from now on so that if necessary I can support the fans "buy out" plans if the worst happens in July. By the way happy new year to everyone.

IRWT

I hate the 2 fu**ers as much as the next man but the positive about them being safe until July is it will keep the boat steady. If they arent pr**king about in the press or trying to sell players to get cash and leave Rafa alone well we might go on to become champions. Become champions and we become an even better option for possible buyers. The last thing we needed now was them 2 clowns under pressure and telling Rafa he needs to sell x y and z. At least now our squad is safe

In July they can f**k off   

I hate the 2 fu**ers as much as the next man but the positive about them being safe until July is it will keep the boat steady. If they arent pr**king about in the press or trying to sell players to get cash and leave Rafa alone well we might go on to become champions. Become champions and we become an even better option for possible buyers. The last thing we needed now was them 2 clowns under pressure and telling Rafa he needs to sell x y and z. At least now our squad is safe

In July they can f**k off   

they haven't got a clue about running a football club its to be hoped someone has word and tells them to leave it the hands of an expert namely Mr. Benitez if they want to emerge from this fu*k up with any credibility at all,or more important to them a bigger wedge than they put in.

Without Rafa them two would be right up creek alley, they need all the revenue they can generate and the main revenue is UCL cash as that generates the income to pay back the loan where it should in truth be going to Rafa to bring in new players. F***ing yanks would sell of every asset we have if they get no UCL cash and if they stay it just may come down to that because you cannot rely on one man year in year out without giving him the cash to run the club....

Without Rafa them two would be right up creek alley, they need all the revenue they can generate and the main revenue is UCL cash as that generates the income to pay back the loan where it should in truth be going to Rafa to bring in new players. F***ing yanks would sell of every asset we have if they get no UCL cash and if they stay it just may come down to that because you cannot rely on one man year in year out without giving him the cash to run the club....

Mr. Benitez is the only positive the yanks have got - a number of our Spanish internationals would no doubt follow Rafa if he left,that's to say nothing of losing an irreplaceable tactical genius .Asset stripping of LFC would be financial suicide ,the yanks know this and that is why they are ducking and diving ,taking out loans to pay loans because the imperative is to keep LFC as a going concern - but they are living and keeping people on a knife edge.

In theory a very good thing for us.

I have a question, if we're under ownership of RBS then would we be up for sale at a knock down price? I'd imagine so, which means DIC could finally takeover.

In theory a very good thing for us.

I have a question, if we're under ownership of RBS then would we be up for sale at a knock down price? I'd imagine so, which means DIC could finally takeover.

Totaly agree with you Crouchinho it could be a very good thing for us.

Totaly agree with you Crouchinho it could be a very good thing for us.

Interesting point made by crouchinho assuming DIC are still interested at that point. One other possibility as I was alluding to in my earlier post, it also opens the door to the likes of Ken Bates / Peter Risdale need I say anymore?

It kills me too think how much money has gone out of the club and how much more will go when these two idiots leave. Its difficult to put a figure on it but its likely to be about 5 or so Fernando Torres. How the F.U.C.K does Moores and Coco sleep and even have the face to show up at matches. Its like a neverending nightmare,I really feel for Rafa having to work with these morons.

In theory a very good thing for us.

I have a question, if we're under ownership of RBS then would we be up for sale at a knock down price? I'd imagine so, which means DIC could finally takeover.

DIC are not in a position to buy anything in the foreseeable future, they really are up sh*t creek, liquidity wise.
They are battling to keep control of their Emirates Airline, they are that cash strapped.
Who eventually owns us I don't know, but it won't be DIC, keep your eyes on the left field for an unknown.
I can't see Hicks and Co defaulting or unable to refinance and RBS auctioning us off, it defo won't come to that, Hick's is a whiley old fox believe me, he'll well have a plan A,B & C