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£10m a month interest?


dave u
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Guest the boy

True. I still can't imagine it. If their business plan revolves around waiting it out before monopolising the tv market a la Juve, Barca or Madrid, then this would severely limit their options. If Hodgson's implications are to be believed and no club was willing to stump up 'Kaka money' for Torres this season, then £120 million vaguely reflects the value of our entire squad, not to mention contracts belonging to Itandje, Degen etc. which plainly we can't shift. Are the pair of them chancers to such a degree?

 

I'd loathe for Bascombe to prove me wrong as, at that rate, come next year we would be looking down the barrel, and 7th place, 4 place, Europa league or whatever else pales into insignificance. Flip-side, of course, is that a near-sale is inevitable, that this club is unsustainable under the Americans, that their plans have been built upon sand.

 

My instinct would be that they wouldn't have placed themselves in such a precarious position, leaving no leeway in their ownership whatsoever. But then I, just as everyone else on this forum and everyone else in the press, am clueless.

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If this is true (and it won't surprise me if this is true), I don't think its RBS who is charging all this interest. They have rules and they simply won't be able to fuck someone over like this.

 

I will be very interested to find out the interest the club is paying for the £100m the two cunts have "lent" to the club through Kop Holdings. 80% interest rate? Again, I won't be surprised at all.

 

We will get sold one day and at least one of the cunts will suffer a horrible death. And you won't want to see how much I drink that day, laughing all the way.

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THE delay in selling Liverpool FC is costing the club's American owners a staggering £2.5million a week.

 

Tom Hicks and George Gillett will see their huge debts increase to £282.4m by August 31 unless they sell the club.

 

 

That's a shocking rise of £45.4m since their last refinancing deal in April.

 

And that's why the duo are set to walk away with nothing when Chinese businessman Kenny Huang ends their reign.

 

 

Under the terms of an agreement with the Royal Bank of Scotland and Wells Fargo named 'Project Langworth', the owners' are accumulating escalating multi-million pound PIK fees - payments in kind - charged at a daily rate of 9 per cent per year from April 6, 2010.

 

 

The rates for borrowing money this way are far higher and riskier. Interest isn't paid annually. In this case, repayments are being triggered every fortnight and their weekly interest bill is a staggering £2.5m.

 

 

PIK fees are at the heart of what made the Glazers' Manchester United takeover so controversial, and explain why Hicks and Gillett are being forced out by the bank. It wasn't publicly known until now that Hicks and Gillett had such an agreement.

 

 

The refinancing of £110m of the Americans' debts was agreed following the refusal by Hicks and Gillett to sell a 40 per cent stake to New York-based Rhone Group. If the club doesn't change hands by next Sunday, Hicks and Gillett (below) will pay another £7.5m. Their debt will rise by another £7.5m on August 31.

 

 

On April 5, Kop Holdings owed £237m. On July 31, they owed £266.6m. On August 31, the figure will be £282.4m.

 

Weep

A Liverpool spokesman said: "This simply highlights why a sale is in everyone's interest."

 

 

Liverpool fans can only weep at the thought of how that £45.4m since April could have revamped their squad.

 

 

The financial implications of Hicks and Gillett refusing to accept their board's decision on who takes over are potentially catastrophic.

 

 

Despite this, they are privately resisting the £450m buy-out by Huang's QSL group because they won't make a penny on the deal - getting only enough money to clear their debts.

 

 

"There are people at Liverpool ready for the mother of all battles to get rid of them," a source told Sport of the World.

 

 

"But this is no false dawn. It's the endgame for Hicks and Gillett now."

 

 

A spokesman for Huang said: "All Kenny wants to do is close the deal and that's all he will be focused on for the next few days."

 

 

Huang will immediately pay off the debt. He must then commit £135.9m equity to start work on the Stanley Park stadium, and has promised a minimum £50m initial transfer kitty.

 

KOP LOSS SHOCKER | News Of The World

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If this is true (and it won't surprise me if this is true), I don't think its RBS who is charging all this interest. They have rules and they simply won't be able to fuck someone over like this.

 

I will be very interested to find out the interest the club is paying for the £100m the two cunts have "lent" to the club through Kop Holdings. 80% interest rate? Again, I won't be surprised at all.

 

We will get sold one day and at least one of the cunts will suffer a horrible death. And you won't want to see how much I drink that day, laughing all the way.

 

We're being charged 10% compound interest for the inter-company loan from our holding company in the Camen isles, but as of yet they haven't made the club pay, but of course they will do so.

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Its Bascombe so - a little knowledge is a dangerous thing.

 

I've made the point before, there is no way, short of a court order, that H&G will abide by a vote of the board that they sell their shares for a price that does not cover all their debt and give them at least a nominal profit.

 

For them debt includes all their own personal money they have "invested " in LFC. That means the loans they have advanced through Kop Holdings. They borrowed most of that money. They are, in fact, lending it to LFC at a higher rate of interest (10% p.a.) than they are paying the people they borrowed it from.

 

That is also what David Moores did. All the money he gave to the club to purchase players was in the form of loans and he recouped all of it plus interest when he sold to H&G. So in that sense, those Moore loans have been rolled over by G&H just as all the money they paid Moores is now a loan on the club.

 

I find it hard to believe that G&H have agreed to daily compound interest since April. If they have, they ought to have disclosed it. And if they have they must have been desperate. But it does not make sense. If they were that desparate they would have accepted the offer of 100 million for 25% from the Rhone Group.

 

However, the more desperate they become the less likely they are to cooperate with any sale that does not help them out. They are more likely to apply for bankruptcy or administration and let LFC go to hell in a handcart.

 

RBS is crucial. As I have said before, banks tend to be the first to blink in a stand-off with large borrowers, and in this case the bank may calculate it may lose its profitable business as LFC's banker if it takes on the owners. But the Texas bankruptcy proceedings has added another dimension of urgency and risk and that might tip the RBS into calling the loan if, in fact, H&G do not accept a bid that at least clears all outstanding debt to the bank.

 

My guess is that Broughton will try to avoid a legal challenge from the owners by getting a bidder also to cover all the Kop Holdings loans, with interest and give G&H a nominal profit.

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Well it is Bascombe like, good chance anything he writes up is completely made up.

 

Now you are entitled to your opinion about Chris Bascombe as everybody is but why can't you look at the facts a little and put your dislike of him to one side and look at the bigger picture there where the club is concerned.

 

This is massive news and frankly downright disgusting that we are in this predicament and it is even worse than what was originally feared considering the consensus was that we were paying 110,000 a day interest. This is like more debt on debt and more interest on interest. It is fucking scandalous and I am glad Chris has gotten this story out. It is three and a half times the interest we thought we were paying which is a scary and sobering thought when you stop and think about it.

 

Do you think Chris would run something like this without checking the facts first and if he is just making this up as he goes along I am pretty sure he could expect a response off RBS and maybe them suing him and the NOTW for putting false information about them in the biggest selling Sunday paper in the country.

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Having read Bascombe's article, the figures are so precise for it not to be true. Said this in the Huang takeover thread, that I was intrigued by the fact that Bascombe had said "when chinese businessman Kenny Huang ends the reign of hicks and gillett" know something we dont I wonder??

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It can't believe the interest is 10 million a month and 120 million a year. Even if our debt was a combined total of 480 million (which it probably isn't) that would mean we're paying 25% interest, seems a little steep. The club would go broke very fast.

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Pushing the envelope on the fictitious statements stakes now. Not for a second do we pay £120 million interest a year to RBS. Yet, I wouldn't advocate 'cutting them slack', all the same.

 

Yeah theres no way thats a true figure. Hes pulled that out of his arse. Still would interesting to hear from him why we should cut them some slack.

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Now you are entitled to your opinion about Chris Bascombe as everybody is but why can't you look at the facts a little and put your dislike of him to one side and look at the bigger picture there where the club is concerned.

 

Its too bad you could not follow your own advice when it came to Rafa. You seem to have special devotion to Bascombe mainly because he is anti Rafa.

 

Bascombe gets paid somewhere like 70,000 pounds a week to report on LFC which means to write about 300/400 words on Saturday afternoon.

 

He does far less than a Jim Boardman or the many other site owners who have been investigating the owners and this bid. In fact Bascombe relies on their sites to find material to recyle. It explains why he rarely provides quotes or names his sources.

 

I guess he got his little snippet about compound interest from someone else but does not fully understand what he wrote. It is unintelligible in the way he presented it.

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Where are people getting the '£120m a year' from.

 

Read what Bascombe has printed which is the interest is charged from April this yearwhen RBS agreed to extend the laon until when the extension expires which is at the start of October.

 

If this is true then its RBS way of forcing out the owners.

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Where are people getting the '£120m a year' from.

 

Read what Bascombe has printed which is the interest is charged from April this yearwhen RBS agreed to extend the laon until when the extension expires which is at the start of October.

 

If this is true then its RBS way of forcing out the owners.

 

And sucking more blood out of the corpse coop, they are not doing it out of the kindness of their hearts. It probably just about covers the cost of opening all those envelopes from RAWK.

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And sucking more blood out of the corpse coop, they are not doing it out of the kindness of their hearts. It probably just about covers the cost of opening all those envelopes from RAWK.

 

RBS want their money and they want Gillett & Hicks off their books.

 

Of course RBS are not doing it for the benefit of the Liverpool fans they are doing purely for their own self protection.

 

The guarantees that Gillett and Hicks put up as part of the inital purchase loan are worthless now as Hicks and Gillett are selling/sold what they used.

 

The debt is worth more then the value of the club so of course they are going to panic.

 

If RBS just left things as they are then Gillett and Hicks would just keep ticking over knowing that the club can afford the interest payments.

 

By increasing this over a short term it means the club can not afford it and Gillett and Hicks would have to find the money from elsewhere.

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