The extent to which Royal Bank of Scotland is losing patience with Liverpool is emphasised by the revelation that it is placing the club’s debts in its Global Restructuring Division which is its home for toxic assets. It takes a much more ruthless approach than the corporate banking department. It increasingly looks as if Tom Hicks and George Gillett will be out of the door on 6th October when their pe
The extent to which Royal Bank of Scotland is losing patience with Liverpool is emphasised by the revelation that it is placing the club’s debts in its Global Restructuring Division which is its home for toxic assets. It takes a much more ruthless approach than the corporate banking department. It increasingly looks as if Tom Hicks and George Gillett will be out of the door on 6th October when their personal debts are due for re-financing.
RBS would be able to foce Liverpool’s UK parent and associated companies into insolvency. In the event of default it has the power to place Kop Football and Kop Football (Holdings), as well as Gillett’s loan-security vehicle, Football UK Ltd, into administration. However, that would incur a nine-point penalty from the Premier League, virtually eliminating the chances of European qualification and reducing the sale value of the club.
The minimum sale price for the club would be its debts which are estimated at between £350m and £380m. There are some credible buyers on the horizon who would be prepared to pay £400m.