• Premier League

Hicks and Gillett lift Reds restraining order

ESPNsoccernet staff
October 15, 2010
Tom Hicks and George Gillett are keen to see hedge fund Mill Financial take control of Liverpool © Getty Images
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Tom Hicks and George Gillett have dropped the Texas court restraining order preventing the Royal Bank of Scotland (RBS) from completing the sale of Liverpool and have completed a deal with Mill Financial in order to pay off the £280 million debt.

Hicks has already signed a deal with Mill Financial - an arm of US hedge fund Springfield Financial Company, based in Virginia, which already owns Gillett's 50% of the club after he defaulted on payments two months ago - to pay the £237 million debt owed to RBS, which has now risen with penalty fees.

If RBS agree to take the money, Mill Financial would effectively become the owners of Liverpool and the move would scupper the New England Sports Ventures (NESV) takeover, but board approval would be needed for Hicks to sell his shares - which of course would be rejected by a margin of three to two.

Therefore, Hicks has agreed a refinancing deal for Mill to pay the RBS debt, with an agreement put in place for repayment at a later date. Indications are, though, that RBS has been advised by their legal team against accepting Mill Financial's offer.

ESPNsoccernet also understands NESV has a banker's draft ready to dispatch to RBS before the 1700 BST deadline on Friday to erase any lingering concerns about Liverpool going into administration, but their hopes of owning the club are hinged on the bank refusing to sanction any payment from Mill and Hicks.

John W Henry arrived at the London offices of Liverpool's lawyers, Slaughter and May, at lunchtime on Friday as he looks to finalise the deal.

The Premier League are already considering NESV's application for the 'Fit and Proper Persons' test. However, a stumbling block for Hicks and Mill Financial is that they will not speak to anyone who is not put forward by the Liverpool board.

A Premier League spokesman said: "We will continue to deal with the legally constituted board of Liverpool Football Club."

© ESPN Sports Media Ltd.
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