28 Jul 2009Liverpool owners secure new debt financing deal

Football Clubs News | Football Finance News

Liverpool owners Tom Hicks and George Gillett have renegotiated a deal to pay back debt owed to the Royal Bank of Scotland and Wachovia.

Recent reports have suggested that the banks could call in their loans at any time, but the US duo have agreed to pay back £60 million from their own funds to extend the arrangement.

This means that the English Premier League club's debt will be reduced to £230 million, with the bank continuing to hold the loan for a further 12 months.

An initial £350 million loan was set to expire last week, with many of the club's fans concerned that Liverpool could end up in the hands of the government.

James McKenna from the Liverpool supporters' union Spirit of Shankly told the Liverpool Daily Post: "This is just an extension, we don't anticipate anything changing in the next 12 months.

"It gives Hicks and Gillett more time to make as much money as possible. We believe the government should have intervened and said 'enough is enough'."

Hicks and Gillett bought the club in 2007 for £174 million, taking on £44.8 million of liabilities, and put the club on the market last year for a reported £500 million, although no sale was concluded.

Written by Paul Roberts

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