Cant argue with that, lets hope it goes through, I'll take a nine point deduction, even though we were told it would'nt effect us if the bank run us as a going concern. i expect a bit of kicking and screaming from the yanks but the sums dont add up for them.
1 question why would the debt be put into a toxic debt before October 6th ? Would take a 9 point deduction as well if it means the only way to get them out with them screaming and us doing the kicking Wonder do we need a world wide campaign letting all financial institutions/backers etc know ..... stay away or we will make sure you lose your bollok
Andrew_Heaton Further to the earlier news from Bloomberg and The Guardian, apparently the #LFC account is now being personally overseen by Stephen Hester
http://www.bloomberg.com/news/2010-...tructure-as-hicks-gillett-deadline-nears.html Liverpool’s owners may struggle to get an extension on their 237-million pound ($366 million) loan after Royal Bank of Scotland Group Plc moved the soccer club’s debt to its restructuring team, two people familiar with the situation said. RBS agreed in April to extend the loan until Oct. 6 to give Americans George Gillett and Tom Hicks time to sell. By involving its restructuring team, the government-owned bank is signaling that it’s unlikely to give them further time and will probably take a role in finding a buyer, one of the people said. The two people declined to be identified because talks are continuing. Hicks and Gillett bought the club in 2007 for 219 million pounds, including debt, and their holding group now has debts of 351 million pounds. The 18-time English champion failed to reach this year’s Champions League, which can add more than 30 million pounds in revenue. While Hicks in April said he wanted as much as 800 million pounds for the team, no bidder has approached the asking price. “The roulette wheel stops spinning on Oct. 6,” said Stephen Schechter, founder and chief executive officer at Schechter & Co. in London, who has helped Newcastle, Southampton and Germany’s Schalke raise money. Penalties The loan extension had penalties for not selling the club by a deadline and the additional costs mean Kop Football (Holdings) Ltd, Liverpool’s parent company, owes about 260 million pounds to the bank, the people said. Hicks and Gillett tried to refinance the debt with other lenders in June. Those attempts were blocked by board members Chairman Martin Broughton, Commercial Director Ian Ayre and Managing Director Christian Purslow. Jonathan Brill, a spokesman for Hicks and Gillett, declined to comment. RBS Spokeswoman Aiofe Reynolds wasn’t able to immediately comment. The bank has faced protest from Liverpool’s supporters. They’ve sent thousands of e-mails to bank executives, including CEO Stephen Hester, urging them not to extend the Americans’ credit facility. Under the terms of the deal, RBS may take control of the club if a new buyer isn’t found by the time the debt matures. Interested Parties Prospective buyers were told they would have to pay off RBS debts in full, finance a new stadium and improve the squad. The people said RBS would now accept a down payment of between 100 million pounds and 150 million pounds with an agreement to pay the remainder of the loan down over a longer term. Groups from India and Hong Kong linked with Liverpool have released statements saying they are no longer interested in bidding. Yahya Kirdi, a Canada-based Syrian investor, claims to represent a group interested in acquiring the team. “If you were a prospective buyer, I would call RBS and say I’m interested in buying your loan,” Schechter said. “I would notify Gillett and Hicks that I’m the new lender and there will be no extensions, renewal or modifications of the loan: It is due and payable in full on Oct. 6. What that does is stop the game.” In March, Hicks and Gillett turned down a 110-million pound offer from New York-based Rhone Group LLC for 40 percent of the club. The money would have been used to pay down the debt. To contact the reporter on this story: Tariq Panja in London at at tpanja@bloomberg.net
The only way the Yanks can get a loan now is if they secure their personal assets against it, i.e. their personal homes, properties and cash reserves. Even they are not that stupid. They took a punt and failed. Toxic loan = game over, nobody will lend to them now, those days are well and truly gone. I just hope RBS sell us to a suitable buyer and not just any chancer, that's the next worry.
Already done that to the tune of £185m If the yanks (Liverpool) can't afford the repayments on a 237m loan at a reasonable interest rate what chance have they got at a high interest rate if they refinance elsewhere Game over!!
yeah id imagine once one bank declares them toxic no bank will touch them at all.just hope the **** they hurry up and sod off and whoever takes over is a decent owner.
Wont the yanks not only make £0 from RBS calling in the loan but haven't they also put in over £100m a while back to reduce the debt to £237m ? or is it just guarantees ? This is brewing for the perfect storm ......
Liverpool loans shifted by RBS into 'bad debts' division By Paul Kelso Telegraph Published: 9:49PM BST 09 Sep 2010 Sources with knowledge of the deal told The Daily Telegraph on Thursday night that the decision was taken to shift the American’s £237 million loan to RBS’s Global Restructuring Group when Hicks and Gillett were in negotiations over extending their financing deal with the bank. The outstanding debt secured against Liverpool's holding companies was largely incurred in the purchase of Liverpool in 2007. When debts secured against the club are included the complete debt package totals £351m. By shifting management of the loans from the bank’s corporate arm in the spring, RBS may have effectively emphasised to Hicks and Gillett their growing impatience with the financial position at Liverpool. In the years following their purchase of the club RBS has demanded increasing levels of security from the Americans, including rising personal guarantees. The banks’ patience had worn thin by the spring, and the shift to the restructuring group was part of the negotiation process that culminated in Hicks and Gillett agreeeing to put the club up for sale and appoint Martin Broughton as chairman to oversee the process. In return RBS agreed to extend its financing deal to the American’s for a further six months, albeit on apparently more onerous terms. That deadline expires on Oct 6 at which point the bank will face a crucial decision. Attempts to sell the club have failed so far, with a flurry of activity at the start of August culminating in two apparently interested parties, Sahara and Chinese businessman Kenneth Huang ruling themselves out. RBS could extend the financing for a further term to allow Broughton to try and complete a sale, or sell the debt to a third party who could then call in the loan from the Americans. It could also call in the debt itself, effectively forcing the American’s out of the club and then run it for a period while it searched for a buyer. That would simplify the process and probably reduce the price, but it would still be a huge step for the bank given the pubic relations implications and the volatility involved in running a Premier League football club.
Sure if RBS tell the Yanks to **** off they will be hero's too Lets all forget about the millions they made from us in the process. Purslow and Broughton are presumed guilty until proved otherwise.