Written by Football Talk.
Tom Hick’s and George Gillett are close to losing control of Liverpool FC after the Royal Bank of Scotland moved the club into it’s toxic-assets division.
The pair have have until the 6th October to refinance their loan agreement with RBS and it now looks like the American’s have less than a month left in charge at Anfield. Initial attempts to refinance their loans were rejected in June and the banks decision to move the debts into their Global Restructuring Group is a clear sign these loans will not be extended.
It’s not thought that RBS have plans to place any of the companies associated with Liverpool or it’s holding companies into administration due to the 9-point penalty the Premier League would have to enforce.
Liverpool fans are counting the days until the 6th October, at which point its expected that RBS will look to sell the club at a knock down price as soon as possible. But any takeover won’t be a simple process as the Americans are not prepared to just walk away from Anfield without a fight, and a long drawn-out court battle could ensue, delaying any prospective take-over.
Stephen Schechter, experienced football financier and chief executive of London-based Schechter & Co, said of the move:
“The roulette wheel stops spinning on October 6.
“If you were a prospective buyer, I would call RBS and say I’m interested in buying your loan.
“I would notify Gillett and Hicks that I’m the new lender and there will be no extensions, renewal or modifications of the loan: It is due and payable in full on October 6.
“What that does is stop the game.”
