Rhone group in talks over 100mil takeover.

[BolshieBastard]

Liverpool co-owners Tom Hicks and George Gillett in London to discuss refinancing – Telegraph Blogs

 

As Liverpool prepare to try and stay in the Europa League this week the club’s owners Tom Hicks and George Gillett have been in London discussing their next financial move, and considering the implications should Rafael Benitez fail to deliver on his promise to steer the club into next season’s Champions League.

 

I understand that the American owners, enjoying a rare joint visit to the UK, spent yesterday afternoon at the London client offices of leading City lawyers Freshfields Bruckhaus Deringer. By co-incidence Freshfields partner Mark Rawlinson is one of the ‘Red Knights’ plotting the purchase of Manchester United from the Glazers.

 

Hicks and Gillett have faced similar supporter disquiet over their ownership of Liverpool and are attempting to re-finance the club’s £237m debts. RBS, their principle lender, has requested that they reduce the debt by £100m ahead of a refinancing deadline in the summer.

 

Rothschilds and Merryl Lynch, the advisors retained by Gillett and Hicks respectively, and club managing director Christian Purslow have been engaged in a global search for third-party investment for months but a deal is yet to be struck. The deadline for a £105m offer from New York-based investors the Rhone Group, who were hoping to secure a 40% stake in the club, passed on Monday.

 

Sources close to the owners say that yesterday’s talks were a general discussion of the owners’ options rather than focused on a specific deal. “There’s nothing imminent,” said one.

 

Purslow has previously said that five or six interested parties are still in play but it appears that all are some distance from meeting the Americans’ valuation. Hicks and Gillett have previously maintained that any third-party investor would have to pay a price that reflects the club’s potential increase in value after the new Anfield, which is yet to leave the drawing board, is built.

 

With the credit markets still depressed and the RBS deadline looming it may be harder for the owners to meet their valuation, but that does not mean refinancing will fail.

 

While RBS would like to see the debt come down it is still highly likely that the bank would offer the Americans a fresh deal. The downside for Hicks and Gillett, as they seek yet another short-term fix to their problems at Anfield, is that such a deal would cost significantly more in fees and interest.

 

If they succeed it will be the third time in as many years that they have had to strike a new deal with the banks, racking up fees every time. The need for a long-term solution that allows work on the new stadium to begin remains.

 

This is what I've been saying for some time now but some people have insisted RBS will not refinance or that those two will have other options.

 

As gut wrenching as that is, fans need to realise the owners will only go when they want or someone offers them what they want.

[PaulMcC]

So we're still fucked and they're staying long term?

[BolshieBastard]

So we're still fucked and they're staying long term?

 

Unless they get what they want, in a nutshell, yes.

[navbasi]

Unless they get what they want, in a nutshell, yes.

 

Yep, agree with you. We'll always generate enough money to cover the interest payments, CL or no CL.. And if they can't then there is always the safety net of selling one of Torres/Gerrard/Javier/Pepe.

[Liverpool lad]

such a fucking cheek for the owners to ask potential investors/buyers to meet a price of what the club 'can be' rather than what the club 'IS'.

 

G&H - 'we want 500m because *one day* the club will have a huge stadium *cough* that'll you'll have to build yourself once we've sold to you *cough*

 

I noticed that as well, worragangofcunts

[bobhorse]

The Rhone group won't get the slice they want this is the same bunch of Vultures that Tom Hicks made is money with

That would make GG a minority share holder as Rhone and TH unite wont happen just yet more bolloxs to keep the wolves from the door for another 6 months untill the next transfer window closes bunch of lying bastard the lot of them

[Chinandeler Bong]

From The Times

April 8, 2010

Liverpool need cash to compete, says Rafael Benitez

 

Rafael Benitez questions whether Liverpool can legitimately compete with the other "big four" clubs if there is no significant investment in the playing staff

Tony Barrett

 

Rafael Benítez believes that he has taken Liverpool as far as he can unless the club’s long-running search for investment bears fruit. The Liverpool manager, laying bare his frustration at seeing the Rhône Group’s deadline for the club to accept its offer lapse on Monday, said that it had caused his optimism to turn to fears of stagnation.

 

Club officials insist that Rhône’s offer — £100 million for a 40 per cent stake, with the cash being used to reduce the club’s £237 million debt at the behest of the Royal Bank of Scotland (RBS), the creditor — has not been withdrawn. However, it is understood that Tom Hicks and George Gillett Jr, the Liverpool owners, were not enticed by a bid that would have left them as minority shareholders.

 

With no other offer on the table, Benítez has made it clear that Liverpool’s malaise could become entrenched if investment is not forthcoming, supporting the view of Fernando Torres, the forward, that cash must be found.

 

“Some players have been talking about what we need for the future and I agree with them,” Benítez said. “They are working very hard, you cannot expect more from them and I agree that if we want to take the step forward that we need to take, we will need money to compete with the top sides.

 

“I agree with Fernando on a lot of things. That it is a pity that after finishing with 86 points last year we couldn’t progress. I agree with him that we need to sign some players. We need to invest and then we can challenge in a better way. While we don’t have the investor, it will be difficult to go one step forward. We balanced the books this year and now we need to go forward on the pitch.

 

“For six months I was really optimistic, especially about the Rhône Group, because they were one of the groups who were there. But they are not there now. For months I have been waiting for new investors and trying to focus on football and I will try to do the same thing now because that is best for the team and the club.”

 

Last summer, Benítez spent about £36 million on Alberto Aquilani, Glen Johnson and Sotirios Kyrgiakos, but his outlay was at least matched by the income from sales, the most significant of which were Xabi Alonso and Álvaro Arbeloa to Real Madridand others.

 

Furthermore, while Liverpool received a substantial downpayment for Alonso they paid only an initial £5 million on Aquilani with the remaining £12 million to follow in instalments, while Johnson’s £17 million fee was offset by the £10 million owed to the Anfield club by Portsmouth for the transfer of Peter Crouch in July 2008 and loan of Jermaine Pennant six months later.

 

Their spending power in the transfer market was restricted by the £30 million in interest they paid to the RBS as a result of the debts built up by Hicks and Gillett. The Americans have held talks with Freshfields Bruckhaus Deringer, the City lawyers, as they continue their attempts to refinance those debts.

 

Liverpool will attempt to overturn a 2-1 first-leg deficit at Anfield as they aim to reach the semi-finals of the Europa League at Benfica’s expense tonight, but it is their problems off the pitch that dominate the agenda.

 

Europe was captivated by Barcelona’s performance against Arsenal on Tuesday and Benítez’s thoughts were dominated by the Catalan club’s superiority to his team. “Barcelona are a massive club with a massive stadium,” Benítez said. “They can spend big money in the transfer window and they have a lot of players coming from the system.

 

“That is the way to do things if you want to compete at the maximum level. We have to be positive and think that the investors will come. All I can do is focus on [tonight’s] game. I am not happy with the situation but I will try to do my best.”

 

Benítez’s outburst also appears to have been provoked by the outcry that followed his decision to replace Torres with David Ngog in Liverpool’s 1-1 Barclays Premier League draw with Birmingham City on Sunday. “Every manager makes mistakes,” Benítez said. “But you can see the difference — at some clubs you can make two or three mistakes of £15-20 million every year and nothing happens; here, because of the situation, you can make a substitution and we can be talking for one week about the end of the world.”

 

• Pepe Reina, the Liverpool goalkeeper, has signed a new six-year contract until 2016. Reina has been Liverpool’s best performer this season and Benítez had been keen to tie the Spaniard down to a new long-term deal.

 

Liverpool need cash to compete, says Rafael Benitez | Liverpool - Times Online

[Guest The Chimp]

They'll be there. It's a big TV game. Shameless cunts.

 

It would be a real shame if a gang of scals smashed their faces in with bricks.

[Josef Svejk]

Depressing article, that... apart from the following, obviously:

 

• Pepe Reina, the Liverpool goalkeeper, has signed a new six-year contract until 2016. Reina has been Liverpool’s best performer this season and Benítez had been keen to tie the Spaniard down to a new long-term deal.

[sean_dundee]

sounds like rbs will bottle it

 

As Liverpool prepare to try and stay in the Europa League this week the club’s owners Tom Hicks and George Gillett have been in London discussing their next financial move, and considering the implications should Rafael Benitez fail to deliver on his promise to steer the club into next season’s Champions League.

 

I understand that the American owners, enjoying a rare joint visit to the UK, spent yesterday afternoon at the London client offices of leading City lawyers Freshfields Bruckhaus Deringer. By co-incidence Freshfields partner Mark Rawlinson is one of the ‘Red Knights’ plotting the purchase of Manchester United from the Glazers.

 

Hicks and Gillett have faced similar supporter disquiet over their ownership of Liverpool and are attempting to re-finance the club’s £237m debts. RBS, their principle lender, has requested that they reduce the debt by £100m ahead of a refinancing deadline in the summer.

 

Rothschilds and Merryl Lynch, the advisors retained by Gillett and Hicks respectively, and club managing director Christian Purslow have been engaged in a global search for third-party investment for months but a deal is yet to be struck. The deadline for a £105m offer from New York-based investors the Rhone Group, who were hoping to secure a 40% stake in the club, passed on Monday.

 

Sources close to the owners say that yesterday’s talks were a general discussion of the owners’ options rather than focused on a specific deal. “There’s nothing imminent,” said one.

 

Purslow has previously said that five or six interested parties are still in play but it appears that all are some distance from meeting the Americans’ valuation. Hicks and Gillett have previously maintained that any third-party investor would have to pay a price that reflects the club’s potential increase in value after the new Anfield, which is yet to leave the drawing board, is built.

 

With the credit markets still depressed and the RBS deadline looming it may be harder for the owners to meet their valuation, but that does not mean refinancing will fail.

 

While RBS would like to see the debt come down it is still highly likely that the bank would offer the Americans a fresh deal. The downside for Hicks and Gillett, as they seek yet another short-term fix to their problems at Anfield, is that such a deal would cost significantly more in fees and interest.

 

If they succeed it will be the third time in as many years that they have had to strike a new deal with the banks, racking up fees every time. The need for a long-term solution that allows work on the new stadium to begin remains.

 

 

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[redrosetints]

Christ imagine if Hicks keeps fucking about.

 

We'll end up having half the squad sold off.

 

Well if Hicks is working to his Corinthians plan, that is the next step. Promise a stadium, promise investment inplayers, sell off players, dont reinvest it, dont build stadium, repeat until club are relegated. Hicks wont go till were relegated.

[redrosetints]

Depressing article, that... apart from the following, obviously:

 

Great news, however, that and The Cheifs contract extensions will be the 25m net spend in the summer accounted for (now wages count from the same pot), so it'll be intersting to see what freebies we can pick up this summer. Sicknote Cole, Joe not Cashley, might be worth a punt.

 

Any decent bossie left backs availbel this summer, Aurelio apart of course.

[Guest LFD]

Don't worry Hicks said this summer will be big.

[zigackly]

He meant big loan repayments.

[piscinin]

Great news, however, that and The Cheifs contract extensions will be the 25m net spend in the summer accounted for (now wages count from the same pot), so it'll be intersting to see what freebies we can pick up this summer. Sicknote Cole, Joe not Cashley, might be worth a punt.

 

Any decent bossie left backs availbel this summer, Aurelio apart of course.

 

And don't forget another round of financing with no investment incurs fees that will pretty much account for everything we raised in the Jan window.

[Kopite Pete]

Liverpool owners Tom Hicks and George Gillett in London for significant talks over club's future – Telegraph Blogs

 

As Liverpool prepare to try and stay in the Europa League tonight the club’s owners Tom Hicks and George Gillett are in London conducting significant negotiations over the club’s future. Sources close to the owners have played down talk of an imminent deal in recent weeks, but there are growing suggestions that the Americans may be trying to push through a deal that would see them leave Anfield.

 

I understand that the Americans spent most of Tuesday afternoon at the London offices of leading City lawyers Freshfields Bruckhaus Deringer discussing a range of options including the imminent sale of the club, or a minority stake to reduce the club’s debt.

 

Those discussions are understood to have continued yesterday, and while the substance of the talks remains unclear at this stage the very fact both men are in London together is significant.

 

Hicks’s presence suggests the talks are substantive. He has often delegated responsibility for negotiations to senior figures in his family company Hicks Holdings, including former executive vice-president Casey Coffman, who dealt with Rafael Benitez’s contract talks last year. Coffman has recently left the Hicks group to take up a senior role at Madison Square Garden in New York.

 

The London talks are taking place against the backdrop of the looming summer deadline for the owners to re-finance the club’s £237m debts with banks RBS and Wachovia. RBS, their principle lender, has requested that the owners reduce the debt by £100m ahead of the June 31 deadline.

 

With that in mind club managing director Christian Purslow, along with Rothschilds and Merryl Lynch, the advisors retained by Gillett and Hicks respectively, have been engaged in a global search for third-party investment for months.

 

New York-based investors the Rhone Group tabled a £105m offer for a 40% stake in the club but their deadline passed on Monday apparently without a deal being agreed.

 

Purslow has previously said that five or six interested parties are still in play and sources have suggested that as many as two are interested in a deal to buy the whole club. These offers are thought to have been discussed this week.

 

The price, as ever, will make or break any deal. Hicks and Gillett have previously maintained that any investor or buyer would have to pay a price that reflects the club’s potential increase in value after the new Anfield, which is yet to leave the drawing board, is built.

 

With the credit markets still depressed and the RBS deadline looming it may be harder for the owners to meet their valuation, but even if fresh investment or a new owner is not found before the end of the season it does not mean that refinancing will fail.

 

While RBS would like to see the debt come down it is still highly likely that the bank would offer the Americans a fresh deal. The downside for Hicks and Gillett, as they seek yet another short-term fix to their problems at Anfield, is that such a deal would cost significantly more in fees and interest.

 

If they succeed it will be the third time in as many years that they have had to strike a new deal with the banks, racking up fees every time. The need for a long-term solution that allows work on the new stadium to begin remains.

[Randy Marsh]

Where's the money Christian? What has happened, now we have once again passed another one of your self-imposed deadlines without a single penny entering the club and those two leaching bastards still bleeding us dry?

[zigackly]

Problem Purslow has, if you take him at face value, is that he can find investment but it's not his decision whether to accept the terms offered. It's ultimately the yanks playing brinkmanship with our beloved club and the banks.

[Duncan Clench]

Can anyone post the article about the parasites being in London to discuss the financing please? I missed it the last 4 times.

[redrosetints]

And don't forget another round of financing with no investment incurs fees that will pretty much account for everything we raised in the Jan window.

 

Indeed, thats where the whole 100m off the debt, refinancing etc becomes a grey area. Its in the best interst of the club to achieve some financial stability in order to do a longer deal and not have to pay 10m a pop to set up a new loan.

 

If we get no new buyer outright, then is it better to have another 100m off, even if it means the pair remain at teh club ?

[redrosetints]

Where's the money Christian? What has happened, now we have once again passed another one of your self-imposed deadlines without a single penny entering the club and those two leaching bastards still bleeding us dry?

 

he said Q1 2010 didnt he ? Q1 2010 start on April 1st and goes on till June. he is in finance so one assumes he's tlaking of teh financial year, since the quoe was third hand when regurgitated, its no surprise the financial year bit was dropped.

 

Its always been q1 2010 as that when the deadline for the new investment is up.

[Guest Ulysses Everett McGill]

Wonder whether Torres still thinks Purslow is doing "a great job"?

[hamstrung]

he said Q1 2010 didnt he ? Q1 2010 start on April 1st and goes on till June. he is in finance so one assumes he's tlaking of teh financial year, since the quoe was third hand when regurgitated, its no surprise the financial year bit was dropped.

 

Its always been q1 2010 as that when the deadline for the new investment is up.

 

"By Easter" I think he said.

[zigackly]

Yes, he did. And he found some in fairness.

[hamstrung]

Yes, he did. And he found some in fairness.

 

I am more inclined to agree with UEM, that he "found" a couple of Hicks' pals who agreed to front a "bid" to try flush out some real investors.

 

I am paraphrasing between the lines a bit there.