Former Liverpool co-owner George Gillett has been sued for over $117 million [£73.2m] for allegedly failing to repay a personal loan he took to invest in the Merseyside club.
A hedge fund, Mill Financial, has made accusations that the American and 12 of his associates made guarantees that a $70m [£43.8m] loan extension in January 2008 would be repaid at an interest rate of 19 per cent, according to the court filing.
The court filing also shows that the lawsuit "arises from the defendants’ failure to honour their obligations pursuant to the unlimited, unconditional, and continuing personal guarantees which they executed in favor of Mill Financial," according to Bloomberg.
The last date for the complete repayment of the loan was reportedly August 13. And it is believed that by July 13 - which was the last time the loan was extended - Mill was already owed $89.9m [£56.19m]. Other fees in addition to legal expenses have taken this sum to £73.3m, which is the sum for which he has been sued.
Gillett and ex-Texas Rangers owner Tom Hicks only recently lost control of Liverpool, in a deal that is thought to have seen the pair lose about £140m.
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