RBS Issue Statement On Liverpool Case

STATEMENT ISSUED BY ROYAL
BANK OF SCOTLAND IN
RELATION TO LIVERPOOL FC
OWNERS
RBS in its capacity as lender to
the Kop group of companies
received the benefit of various
contractual undertakings from
Mr. Hicks and Mr. Gillett in
relation to the corporate
governance arrangements that
Mr. Hicks and Mr. Gillett agreed
would apply to the Kop group of
companies with effect from April
2010.
Those undertakings provided
for the appointment of Mr
Broughton as chairman of the
board and the appointment of
the chief executive and
commercial director of LFC to the
Kop boards. As is well known,
Mr. Hicks and Mr. Gillett
purported to make changes to
those corporate governance
arrangements on 4 October. This
was in breach of those
contractual undertakings.
In light of that purported breach
of contract RBS sought and
obtained on Friday 8 October
2010 an interim injunction
against Mr. Hicks and Mr. Gillett
until a further hearing scheduled
for tomorrow.
Among other things, that interim
injunction prevents Mr. Hicks or
Mr. Gillett taking any steps to
remove or replace Mr.
Broughton from his position as
chairman of the board of the
Kop companies or from taking
any other steps to appoint or
remove any directors from the
board of the Kop companies.
The proceedings tomorrow
represent the continuation of
Friday ’s proceedings and relates
to breach of contract only. These
proceedings do not represent
steps by RBS to enforce its
security or to appoint an
administrator.
We are unable to provide any
visibility on timing for resolution
of these proceedings at this
stage.