Hicks Aiming To Take Control Of Liverpool Again

Liverpool co-owner Tom Hicks
will attempt to refinance debts
of £237 million with Royal Bank
of Scotland in an effort to
remain in control at Anfield,
Telegraph Sport can disclose.
Hicks flew to London earlier this
week and met with Liverpool
chairman Martin Broughton and
the club management team on
Wednesday. He is understood to
have told them that raising fresh
finance to buy out the RBS debt
is one a number of options he is
considering ahead of the Oct 6
refinancing deadline set by the
bank.
It is unclear whether Hicks is yet
in a position to buy out the RBS
loans, incurred in the acquisition
of the club in 2007.
The Texan is not thought to have
held talks with RBS during his UK
visit, but the bank is considering
extending its financing to Hicks
and co-owner George Gillett in
order to provide Broughton with
more time to secure a buyer for
the club.
Such a move would undoubtedly
prove unpopular with supporters
hopeful that Oct 6 would see the
bank call time on owners who
have become deeply unwelcome
on Merseyside.
Perhaps significantly Gillett has
not been part of the talks in
London this week and his
precise role in the negotiations
remains uncertain. His position
may be complicated by the fact
that he used his 50 per cent
stake in the club as security
against borrowings he made in
order to meet RBS ’s demand for
personal guarantees in a
previous refinancing round in
2008.
Were Hicks to be successful in
raising the money to buy out
RBS, Broughton and his
colleagues on the club board
would have to decide whether to
attempt to block the deal.
Broughton, managing director
Christian Purslow and
commercial director Ian Ayre
blocked the American ’s last
attempt to refinance in June.
They did so only having taken
legal advice from Slaughter & May
that they were able to do so.
Company law requires directors
to act in the best interests of the
shareholders - in this case Hicks
and Gillett - but in some
circumstances they can over-ride
those concerns if it is deemed to
be in the company’s interests.
If Hicks returns with a
refinancing deal before Oct 6
they will face the same choice.
Broughton is understood to have
told Hicks on Wednesday that the
board remain open-minded and
will listen to any proposal he
places before it.
Broughton, who was appointed
in April as a condition of RBS
extending the financing to the
Americans for six months, has
made it clear that he considers
the sale of the club to an owner
who removes the club’s debt and
allows investment in a new
stadium to be the best deal for
Liverpool ’s future.
The absence of any buyers
willing to meet Hicks ’ and Gillett’s
valuation has placed RBS in a
deeply uncomfortable position,
and despite pressure from
supporters there appears to be
little appetite within the bank to
force the American ’s into default.
Bank sources have told
Telegraph Sport that taking
control at Anfield is their least-
favoured option, and that they
will consider extending the
current financing arrangement if
required.
They have also suggested that
they will take a “more active” role
in the sales process, though with
just three weeks until the
refinancing deadline and a
shortage of interested parties
that appears to be positioning
ahead of a deeply sensitive
period.
While RBS has moved the loans to
its “bad bank”, the global
restructuring group, Hicks has
consistently maintained that
Liverpool is a growing and
increasingly profitable company
rather than a distressed asset.
His pursuit of a potential
refinancing deal indicates his
determination to remain involved
and recognise value from the
club.