Tuesday, April 13, 2010

RBS Sets Six-Month Deadline For Tom Hicks & George Gillett To Sell Liverpool

Liverpool owners Tom Hicks and George Gillett are set to be handed more time with which to find a buyer for the club, it seems, with the Royal Bank of Scotland (RBS) about to extend the deadline on the club's outstanding debt, according to a report from The Liverpool Echo.

The club has outstanding debts of £237 million and creditors RBS and American bank Wachovia had demanded a £100m repayment by July.

That deadline will be extended by six months though, allowing Hicks and Gillett more time in their search for a buyer for the Reds.

The Echo also reports that the Americans will this week confirm that the club is up for sale and that they do not intend to retain a stake for themselves, whilst the report also discounts weekend rumours that Barclays Bank were about to provide a refinancing package that would speed a change of ownership at the club.

Barclays Capital are set to search for new investors to buy the business and fund the development of the club's long awaited new stadium.

An extension to the loan repayment deadline by RBS would apparently remove the refinancing issue.

This should then enable the club to avoid a 'fire sale' situation when it comes to negotiating with any interested investors.

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