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T'is a shame.

 

Mill Financial Sues George Gillett Personally For $117 Million Over Liverpool Loan

Nov. 19 2010 - 3:20 am | 2 views | 0 recommendations | 0 comments

 

Image by AFP/Getty Images via @daylife

Lending firm Mill Financial has sued George Gillett Jr. for breach of guarantee, claiming the Colorado financier personally owes $117 million that was connected to his investment in the Liverpool Football Club.

 

In a 12-page complaint filed on Thursday in Manhattan’s New York state court, Mill Financial claims Gillett is personally liable, together with some of his business entities, under a guarantee of a loan that Mill Financial alleges has come due. Mill Financial filed in court a copy of an unlimited guarantee signed by Gillett in 2008.

 

Mill Financial, which is based in Springfield, Virginia, reportedly refinanced a loan used by Gillett to buy a big stake in the famous Liverpool Football Club of the English Premier League in 2007. Gillett’s partner in the deal was Texas businessman Tom Hicks. According to the lawsuit, Gillett Football LLC borrowed $70 million in a January 2008 term loan from Mill Financial.

 

Mill Financial says in the court document filed Thursday that the loan became due on August 13 but had not bee paid in full. In the complaint, Mill Financial claims that Gillett and some of his business entities, like Booth Creek Management, issued guarantees that “‘unconditionally and absolutely guarantee[d]’ the “payment in full, promptly on demand.”

 

It appears, according to the lawsuit, that Gillett entered into a high yielding term loan that carried a 19% annual interest rate. In the month before the loan allegedly came due in August, the amount owed by Gillett Football LLC was $89.8 million. Mill Financial notified Gillett in August that the loan was in default. In early September Gillett Football LLC did make a $431,000 payment, but Mill Financial claims “this amount was not sufficient to cure the default.” After tacking on extra fees, Mill Financial claims the amount now due is $117 million.

 

Gillett, reached on Thursday night, declined to comment on the lawsuit. Mill Financial could not be reached for comment.

 

The potential of massive personally liability to businessmen stemming from personal guarantees made on corporate loans has become an issue recently. As I reported earlier this month, Moses “Mark” Stern, a little-known commercial real estate investor, personally owes Citigroup $126 million under guarantees for which the bank has recently obtained court judgments.

 

For Gillett, the Mill Financial lawsuit is the latest development in a saga that has gone on for months in courts from London to Texas. Gillett, together with Hicks, lost control of Liverpool FC in recent weeks, unable to stop the Royal Bank of Scotland, which financed their original purchase of the team, from selling Liverpool FC. The bank, which was able to sell the team because it served as collateral for the loans used to purchase it, sold Liverpool FC to Boston Red Sox owner John Henry’s New England Sports Ventures at a price that was lower than expected.

 

Mill Financial had reportedly emerged at one point with a bid of its own to purchase Liverpool FC, but was unsuccessful. Mill Financial’s loan to Gillett Football LLC was collateralized by Gillett Football’s interest in Football Investments LLC, court documents say, but it appears that collateral may have disappeared when the Royal Bank of Scotland sold the team.

 

At the same time as the Liverpool issue has been going on, Gillett’s Nascar venture, Richard Petty Motorsports, has reportedly been in financial trouble. Gillett did make a fortune selling hockey’s Montreal Canadiens in 2009.

Forbes

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Guest davelfc

He's got to be fucked now, I mean who on gods earth would be stupid enough to loan him any money or help him?

moores-said-gillett-vouched-hicks.jpg

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According to the lawsuit, Gillett Football LLC borrowed $70 million in a January 2008 term loan from Mill Financial.

 

It appears, according to the lawsuit, that Gillett entered into a high yielding term loan that carried a 19% annual interest rate.

 

 

A term loan for $70m at 19% p/a. What a fucking cunt. The cunts deserve everything they get.

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This is just priceless.

 

The people predicting Tom & George would end up as beggars on the street might have been right all along.

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This is great news that that lying horrible **** has got what he deserves, i only hope it gets worse.

 

But could this have a affect on us. With all the sale etc going through I lost count of things i missed.

 

At one stage after the sale they were going to sue, then they decided (or where told not to) so they pulled it.

 

Could they not try and relight the fire and try and get the money from our club and this whole horrible process start again?

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A piece in todays echo too. Couldn't have happened to a nicer cunt.

 

 

FORMER Liverpool FC co-owner George Gillett is reportedly being sued after failing to repay a debt he owed connected to his investment in the club.

 

It has been reported Virginia-based Mill Financial is claiming the Canadian businessman owes the company $117 million (£73m).

 

According to Forbes in a 12-page complaint filed on Thursday in a New York state court Mill Financial claims Gillett Football LLC borrowed $70 million in a January 2008 term loan.

 

Mill Financial says in the court document that the loan, used to secure his share of the Liverpool club, was due on August 13 but had not been paid in full.

 

It appears that Gillett entered into a high interest loan that had a huge 19% annual interest rate.

 

Court papers show that in September Gillett Football LLC paid $431,000.

 

But Mill Financial says "this amount was not sufficient to cure the default".

 

After adding on extra fees Mill Financial claims the amount now due is $117m.

 

For Gillett the Mill Financial lawsuit is the latest dramatic twist in a saga which has dragged on for months in courts from London to Texas.

 

Gillett and co-owner Tom Hicks lost control of Liverpool in a bitter courtroom battle which ended with the club being sold to New England Sports Ventures for £300m in Octobe

 

Former Liverpool FC co-owner George Gillett reportedly being sued over failure to pay debt - Liverpool Local News - News - Liverpool Echo

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As a person I genuinely never get off on peoples downfalls but I know some that seem to thrive on it.

 

I do however have a few exceptions to the rules and Tom and George are at the top of the pile, may long it continue.

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This is yet more evidence of how fucking retarded Moores and Parry were. The guy had to get a loan less than a year after he bought the club.

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