Monday, October 11, 2010

Liverpool Face Bankruptcy As Kop Holdings Default On Loans

Liverpool could be placed into
bankruptcy protection as the
Royal Bank of Scotland take
their battle with Tom Hicks to
the High Court tomorrow
It has emerged that Kop
Holdings, the club's parent
company, have already
defaulted on their £282million
loan agreement with the high
street giant and San Francisco-
based Wells Fargo ahead of this
Friday's scheduled
repayment deadline.
This means that the threat of
Liverpool being hit with a nine-
point deduction by the Premier
League if Kop Holdings is placed
into administration is still a very
real threat although RBS are
reluctant to enforce this due to
the repercussions for the club.
RBS are understood to be
supportive of the proposed
£300million buyout by New
England Sports Ventures (NESV)
and will take their fight with
Hicks to the High Court
tomorrow morning, with the
case set to begin at 10.30am.
Questions over the shares of
George Gillett, the Texan's
fellow co-owner, after he
defaulted on a 75million loan
with Mill Financial, continue to
linger with no indication over
whether this will affect NESV's plans to assume total
control at Anfield.

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