Reds seal refinancing deal with RBS and Wachovia
LIVERPOOL’S owners have ended months of uncertainty by refinancing £290m of debt they accrued in buying the club.
The deal with Royal Bank of Scotland and Wachovia is believed to have extended Tom Hicks and George Gillett’s repayment period for a year.
The Americans are also thought to have agreed to pay back £60m of the debt, with at least half upfront and the remainder later in the year.
Fears grew that the banks might call in the loan as last week’s deadline for the refinancing passed with no announcement of a fresh agreement.
Auditors KPMG warned last month that the looming deadline cast “significant doubt” on the future of the club’s parent company Kop Football Holdings. Hicks and Gillett’s investment vehicle lost more than £40m in the year ending August 2008, with interest payments alone accounting for more than £36m. Despite spending £17m on full-back Glen Johnson, boss Rafael Benitez’s budget has been limited by the club’s repayments.
The owners, who bought the club for £174m in 2007, have since searched in vain for an investor to take a minority stake.