Quote:
Originally Posted by Kennys_spell
The point I made still stands - if there are two partners on the holding company (Gillett and Hicks) the loan couldn't be loaded onto the holding company unless BOTH partners agreed to it. The Banks are very unlikely to loan the odd £300 Mill to a pair of partners at Loggerheads. It would have to be taken out by Hicks against his own name.
Let him put himself further in debt and further at risk.
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Quote:
Originally Posted by Kennys_spell
I'm sure thats what he'll try - but like I said, he has to get the loan against his own holdings before he can buy Gillett' 50%. If he succeeds in doing that, Gillett will disapear and we'll all be paying through the nose.
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I could be missing your point here, so apologies if so.
He'll be borrowing the money against the new version of whatever actual company is up for sale. Say it's Kop Holdings, he'll buy Kop Holdings. When he buys it the current legal documents governing who can do what will either change by specifically being updated, or just by the fact that as Partner X and Partner Y are now both him he can authorise whatever he likes.
He can't technically borrow the money until he owns the club, but he can't own the club until he's borrowed the money. But that doesn't matter. If it did houses would never get sold, never mind big business deals go through so many times a day.
There will be a number of transactions that all technically happen at the same split second in time. I don't think it actually physically happens in that way, but for legal purposes it does.
All that Hicks needs is an agreement from Gillett to sell at a given price. Gillett can insist on proof from Hicks in advance that he's got all the money lined up.
The offer itself will probably be a good few pages long, and it will include conditions about Gillett revoking all his rights to votes in the club, rights to profits etc (unless it's an offer for part of the club in which case it will be pro-rata). That offer will also be part of the contract between Hicks and his lenders.
Gillett can only block the finance by not accepting the terms of Hicks' offer.