Liverpool's Board Will Attempt To Block Tom Hicks' Attempts To Stay In Control At Anfield

Liverpool’s board is expected to attempt to block Tom Hicks’ efforts to remain in control at Anfield, but could be powerless to do so if the Texan refinances the club’s debt with Royal Bank of Scotland.

The board’s anticipated opposition to any proposal that involves continued debt and the involvement of the American owners signals that the club is effectively in a state of civil war.

As disclosed by Telegraph Sport, Hicks met Liverpool chairman Martin Broughton on Wednesday and told him that he was attempting to raise finance to buy out RBS, whose credit line to Hicks and co-owner George Gillett is understood to expire this month.

Sources said Hicks is understood to have been in talks with GSO Capital, a division of private equity giant Blackstone run by Bennett Goodman, about forming a consortium to buy out RBS.

Hicks’ move comes with Gillett attempting to retain control of his 50 per cent stake in the club after a $75 million (£48 million) loan secured against it was called in by lender Mill Financial.

Gillett is understood to maintain that he remains a controlling partner in the club and is supportive of Hicks’ refinancing efforts, but there are suggestions that any default by Gillett would leave Hicks in sole control of Liverpool’s Delaware-based holding company.

Any proposal that would mean Hicks remained in control using further debt would be resisted by Broughton and directors Ian Ayre and Christian Purslow. They blocked a refinancing attempt in June but if RBS is removed from the picture, their powers may be limited.

The board had to take independent legal advice in the summer before it opposed the owners, but it would have to have solid grounds for opposing the will of the shareholders.

Hicks and Gillett owe RBS at least £237 million, and Broughton has been engaged in a search for a buyer to remove them from the club. Thus far he has failed to find a credible bidder able to repay the debt, satisfy the Americans’ price expectations and put money into stadium investment and transfer fees.