Hicks Texas Rangers seized by authorities

[zigackly]

At the end of the last financial year the club stood to owe them £144 million.

 

That figure will rise the longer they are here.

 

How much of that do you reckon they will see if the banks call in the debt though? Also they have to sell at some point even if the debt never gets called in, or they'll never see any of it.

[Coro]

How much of that do you reckon they will see if the banks call in the debt though? Also, they have to sell at some point or they'll never see any of it.

 

They'll get it regardless as far as i'm aware.

[zigackly]

They'll get it regardless as far as i'm aware.

 

Pretty sure they wouldn't get anywhere near the full amount in a forced sale by the banks. Nor would RBS either. It's in the interests of both parties to sell before that happens.

[Coro]

Pretty sure they wouldn't get anywhere near the full amount in a forced sale by the banks. Nor would RBS either. It's in the interests of both parties to sell before that happens.

 

A total of £233.996m is owed to RBS, in addition to an inter-company loan of £144.441m owed to “Kop Cayman”; a company owned by Gillett and Hicks based in the Cayman Island for tax reasons; a company that have loaned Liverpool FC £144.441m at an interest rate of 10%. This is the “own money” that Gillett and Hicks claim to have put into the club. In reality, they’re just charging the club 10% interest for lending that money through an offshore limited liability company that they aren’t even personally liable for – Liverpool FC are.

 

 

From what i gather the club will owe them that money regardless of a forced sale or whatever.

[zigackly]

From what i gather the club will owe them that money regardless of a forced sale or whatever.

 

If the banks call it in they'll sell it for whatever they can and the yanks would get some of that as a creditor AFAIK. Hopefully someone better informed than me in these matters can confirm or deny that.

[Trucker Paddy]

From what i gather the club will owe them that money regardless of a forced sale or whatever.

 

They would'nt, the RBS are the main creditors to the club, they'll get paid and the yanks will get scraps and nothing like the £140m, if the club is'nt sold by March there gona lose everything with the way the debt is building up, we're gona lose £70m for the year ending July 2010, they know they have to get out now, its just a case of who blinks first, and hope our players see the big picture and refuse to move unless they want to.

[Coro]

They would'nt, the RBS are the main creditors to the club, they'll get paid and the yanks will get scraps and nothing like the £140m

 

A total of £233.996m is owed to RBS, in addition to an inter-company loan of £144.441m owed to “Kop Cayman”;

 

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Yes, they are owed much less than the bank, therefore in a fire sale they get paid after AFAIK.

[Coro]

Yes, they are owed much less than the bank, therefore in a fire sale they get paid after AFAIK.

 

I'm still trying to get my head around all this and it's ridiculous how us mere football supporters now need a degree in business to discuss relevant matters about our club, but from what i'm led to believe if it gets to a point then the bank seizes control of the club and the pair of cunts walk away with what is owed to them, regardless.

 

Head hurts.

[zigackly]

Mine too.

[Trucker Paddy]

Yes, they are owed much less than the bank, therefore in a fire sale they get paid after AFAIK.

 

I'm more concerned about them trying a firesale before the summer is out, this will be there last transfer window. the legalities of that cayman loan are very questionable, there basicly loaning money from a company that they chair to another company they chair that they are allowing to go bust and charging massive intrest, which has'nt been paid and is gathering up, i'm no legal expert but i cant see them getting that money back.

They know the game is up, the leverage buyout will only work with a succesful team, if we can just get through this summer i think we'll see the back of them.

The future income from the stadium is what they want, I think if they broke even now or got a £20m profit, providing they get a cut of the stadium for a set period they'll go.

[Trucker Paddy]

Mine too.

 

Mine to, i'm thinking of going to night college in September if there still here, gona get a maths degree.

[Durango]

I'm still trying to get my head around all this and it's ridiculous how us mere football supporters now need a degree in business to discuss relevant matters about our club, but from what i'm led to believe if it gets to a point then the bank seizes control of the club and the pair of cunts walk away with what is owed to them, regardless.

 

Head hurts.

I think the Kop Holding debt is artificial (it's like me borrowing money from myself,do I have to pay myself back) the £237m outstanding is approx £15m above the original purchase price.

 

I convinced the Club will be sold for approx £275-350m,that's approx 50% more that what H&G paid for the Club 3 years ago,minus CL revenue.

[aws]

I think the Kop Holding debt is artificial (it's like me borrowing money from myself,do I have to pay myself back) the £237m outstanding is approx £15m above the original purchase price.

 

I convinced the Club will be sold for approx £275-350m,that's approx 50% more that what H&G paid for the Club 3 years ago,minus CL revenue.

 

The debt is artificial and is not worth getting too excited about. Parent company debt like this is standard practice for private equity investors because it allows them to take their profit out by way of "interest" and the company earning their profit can get tax relief on that interest because it's a "legitimate" business expense.

 

If the club is sold it will either get written off or its value will get deducted from the price. If the bank sells the club the bank will pay off its own loan and then any extra will be used to pay off the Kop debt and if the Kop debt is not cleared the balance will get written off.

Edited May 13, 2010 by aws