Originally Posted by Tom R
This so-called "credit crunch" won't really make any difference unfirtunately.
It's not like he's borrowed on a variable rate or anything. It's a fixed rate, over a fixed period. So providing the money is coming in to the club then the debt is being serviced.
Basically, as SOS an many others keep saying, and everyone continually ignores, the only way to help the club is to STOP SPENDING MONEY THERE.
Lack of cash coming in = payments on loan in jeopardy = bye bye Tom Hicks.
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Sorry Tom, but that is bollocks. There is a much bigger chance the credit crunch will force their hands in 1 1/2 years time than people not buying from the club shop.
The debt being serviced is a small part in this, the big part is the £350m needs to be re-financed in a little less than 18 months. As long as the credit crunch is hitting the US so hard, the USD will continue to decline, especially seeing as they have now hit recession as well. This means that their assets is continues to be less worth in UK£, meaning they will have to put more of their assets in to get the refinance.