Liverpool FC

[kinboshi]

http://www.guardian.co.uk/football/blog/2010/oct/14/liverpool-fc-sale-live-coverage?CMP=twt_gu

Watch the live updates here! (edit: apparently there'll be a new URL for Friday's fixture.  It's like a bloody test match this!)

Think proceedings start at about 1pm UK time.  Got a horrible feeling Hicks might get hold of the money somehow and keep hold of the club.  Then he'll somehow be able to do what he wants with it and offload it to Mill/Huang or someone.  Sigh.

[The Camel]

Are Mill Financial offering to pay the RBS loan back in full?

[kinboshi]

Today's circus is here:

http://www.guardian.co.uk/football/blog/2010/oct/15/liverpool-fc-sale-live-coverage-dallas-hicks-henry

[kinboshi]

Are Mill Financial offering to pay the RBS loan back in full?

RBS turned down their money yesterday.

[boldie]

Sky news on yahoo;

A restraining order blocking the sale of Liverpool FC has been lifted, clearing the way for the club to be sold.

Liverpool Owners Lift Block On Sale Of Club

The decision by the club's American owners Tom Hicks and George Gillett comes just hours before the deadline to settle its more than £230m debt expires.

A hearing to determine whether a restraining order brought by the pair could be upheld was due to be heard at 1pm today in Texas, where they have been attempting to block the sale of the Reds.

However, it is still not clear who might end up buying the club.

A spokesman for Mr Hicks has previously denied rumours the Texan had sold his share of the club to US hedge fund Mill Financial.

Reports had suggested the group, a branch of Washington-based Springfield Financial, had acquired Mr Hicks' 50% share having already taken ownership of Mr Gillett's half.

If Mills Financial are looking to take over, they would be competing with the £300m offer from New England Sports Ventures (NESV), the owners of the Boston Red Sox.

NESV is reported to have a banker's draft ready to dispatch to Royal Bank of Scotland (RBS) today - the deadline for the repayment of the club's debt.

The threat of administration looms over the club if a sale is not agreed soon, which could lead to the Premier League handing out a nine-point deduction to Liverpool, which is already in the relegation zone.

Liverpool chairman Martin Broughton sent the club's lawyers to Texas to ask for the temporary restraining order on the sale of the club to be lifted today.

The High Court in London ruled the initial restraining order issued by the Dallas court was invald, saying it did not apply in the UK.

The judge gave Mr Hicks and Mr Gillett until 4pm to comply with his orders and remove the restraining order.

However, the American duo instructed their legal team to return to the 160th District Court in Dallas and the case was adjourned until 1pm.

More follows...

[boldie]

this just gets crazier by the day...surely Hicks can't sell his shares to Mill?

[kinboshi]

Mill approached Premier League seeking to go through the fit and proper test. Premier League refused stating the request must from the LFC board.

From Paul Kelso on Twitter.


I think the only way Hicks can retain the club is if he gets the cash from somewhere to pay off the loan, and then he's free to sell it to whoever as he'll be able to change the board, etc., then.  However, even then he might have problems selling it (Premier League test, possible legal action by NESV and others).  Would probably be a nightmare scenario for LFC if Hicks paid off the loan and retained the club.

Seriously though, who in their right mind is going to lend hundreds of millions to someone like Hicks thinking it's a good idea? 

Springfield Financial Companies - sounds like some fictional outfit in the Simpsons.

[kinboshi]

"Mill Financial are an arm of the Springfield Financial Companies. That has been confirmed. In recent weeks, there have been reports that they lent George Gillett £75m to meet his further loan commitments at Liverpool, and that he defaulted on that loan, so they have in effect repossessed his shares. That has not been confirmed by Mill, who so far do not return calls. Gillett has not returned a call for some weeks now.

If those reports are true, that means if Liverpool is sold to NESV for the agreed £300m, to repay all Liverpool's debts owed to the banks (except for £30m to finance stadium development), it is Mill Financial which will lose that £75m, along with Hicks losing his around £70m."

goes on

"That means a US hedge fund, based, like Hicks, in southern USA - Springfield, Virginia - have a £75m loss to protect. That helps to explain why they should now be apparently working desperately with Hicks to avoid a sale to NESV. If they lend Hicks the £200m to repay RBS, the scenario being discussed at the moment by the participants, and Hicks does so, he could stay in control of Liverpool, because RBS is repaid and their hold over the board via the undertakings falls away. Hicks would owe Mill £200m, at whatever rate of interest he has had to agree to. The "payment in kind" loans from the US hedge funds at Manchester United currently charge 16.25% interest, a year, so that would be £32.5m a year interest, and there would likely be very large costs to add to it - financial institutions like to charge for the right to lend their money.

There seems little doubt that Hicks would make Liverpool itself, out of its income - fans' money, TV, commercial revenues - pay that interest and harges and service the debt, as he and Gillett did with the RBS loans. That is a major financial reason why Liverpool fans will be desperate the Mill/Hicks eleventh hour bid does not succeed.

NESV, have committed, to clearing the £300m of debt, and not loading the club with any more debt, or making the club in any way pay any of the costs associated with buying it.
NESV are saying very firmly they will sue because they have a binding agreement with the board to buy the club - as Henry has reiterated on Twitter."

[Bongo]

Hasn't the deadline to pay RBS passed yet?

[kinboshi]

Hasn't the deadline to pay RBS passed yet?

Sort of.  But they've said they won't bring the club into administration as they have NESV's offer to buy the club and pay off the debt.  Which I guess they'd prefer.  Even if Hicks somehow raises the funds, avoids all the legal stuff and manages to retain hold of the club - that will mean that the debt to RBS will have to be paid off in full.  So for them, it's best to wait.

[Bongo]

I was thinking that if the deadline has passed surely they can tell Hicks to do one even if he has the cash.

[AndrewT]

Premier League have told Mill Financial to GTFO - they won't let them take the 'fit and proper' test.

[kinboshi]

"We are getting word that the NESV is about to GO THROUGH. BUT Hicks is planning $1.6billion lawsuit."


♫ "We're gonna bounce in a minute....." ♫

[kinboshi]

1.45pm: Has Tom Hicks thrown in the towel? This statement from Hicks (in full):

LFC owners to pursue $1.6 billion from "epic swindle"

Hicks and Gillett withdraw TRO blocking sale of Liverpool Football Club. Action prevents RBS from needlessly putting Club into administration. RBS rejected owners' pledge to pay off all debts by October 15. Attorneys say ludicrous, self-serving and illegal behavior from directors and outsiders to hinder Club for years.

"It's an extraordinary swindle and it will result in exactly the wrong thing for the Club and the fans."

Those were the words used by attorneys representing Liverpool Football Club owners this morning when they announced they would apply all of their legal energies toward securing at least $1.6 billion in damages they expect will result from the proposed illegal sale of the Liverpool Football Club.

Attorneys also stated that protracted litigation concerning the Liverpool transaction will now cause even more uncertainty for the LFC.

"This outcome not only devalues the Club but it also will result in long-term uncertainty for the fans, players and everyone who loves this sport because all legal recourses will be pursued," said Steve Stodghill, the Texas attorney representing the Liverpool owners. "Mr. Hicks and Mr. Gillett pledged to pay the debt to RBS so that the Club could avoid administration that was threatened by RBS. That offer was rejected. It is a tragic development that others will claim as a victory. This means it won't be resolved the way it should be resolved. My clients worked tirelessly to resolve these issues but RBS would not listen to any reasonable solution and the Directors acted selfishly and illegally."

Stodghill said the owners have no choice but to pursue every legal avenue possible, and they will.

"Mr. Hicks and Mr. Gillett wanted to position this club for the future, but others have a different agenda," said Stodghill. "In truth, there is nothing positive from these events for Liverpool Football. That is exactly the opposite of what my clients wanted to achieve. "

Tosser.

GTFO HICKS

[kinboshi]

In other good news, Carra has signed a two-year extension and Kuyt might be back playing as soon as the end of November.