Monday, October 11, 2010

RBS vs Hicks Set For Tomorrow

THE battle for ownership of
Liverpool FC will begin in
London's High Court after it was
confirmed proceedings are
scheduled to begin tomorrow.
Royal Bank of Scotland, the club's
major creditors after lending
owners Tom Hicks and George
Gillett the money to buy the club
back in March 2007, have
submitted an application to the
Royal Bank of Scotland PLC v
Hicks & others is among a
number of cases to be heard by
Mr Justice Floyd at 1030.
The dispute to be settled revolves
around whether chairman Martin
Broughton has the authority to
sell the club to New England
Sports Ventures (NESV) - with
whom a £300million deal has
been agreed - against the wishes
of Hicks and George Gillett.
Broughton claims when the
owners decided to put the club
up for sale in April RBS requested
undertakings from them that
only he, as independent
chairman, could make changes to
the club's board.
That was to prevent the two
Americans blocking any sale as
the format of the board meant
Broughton, managing director
Christian Purslow and
commercial director Ian Ayre
could outvote the Hicks and
Gillett three to two.
However, minutes before a
meeting last week to discuss the
bid by NESV, which will clear all
debt but leave the owners with
losses of £144million, Hicks tried
to sack Purslow and Ayre and
install his son, Mack, and Lori
McCutcheon, who works for
Hicks Holdings.
Broughton rejected the proposal
and continued with the meeting,
with the England-based board
members coming down in favour
of the NESV bid.
Hicks, however, has denied there
are such undertakings in place,
insists Broughton's actions were
illegal and therefore the sale is

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