Source: Team_Talk
Broughton admits administration fears
Chairman Martin Broughton says Liverpool could end up in administration next week if Tom Hicks and George Gillett win their High Court battle.[LNB] The Reds' future will be decided in the High Court on Tuesday, as Broughton battles with the club's owners Hicks and Gillett over the proposed sale of the club to New England Sports Ventures.[LNB]Broughton was hired by Hicks and Gillett earlier this year as club chairman, with his main job being to find a new owner.[LNB]He has now set up a £300million sale to NESV, but Hicks and Gillett are not happy with the price and are now taking the issue to court.[LNB]If Hicks and Gillett win their case, then Broughton says the club could very well go into administration as the club's main financial backers Royal Bank of Scotland are due to call in their debt of £280million on October 15.[LNB]Should RBS call in their debts, then that would see Liverpool enter administration which would also see a nine-point deduction in the Premier League.[LNB]"It [administration] could happen, yes," Broughton told the Daily Telegraph. [LNB]"This is all part of why it is important that we made the decision on Tuesday to accept one or the other of the two very acceptable bids. Heading for administration was a very likely outcome if we didn't.[LNB]"Even now with the court case looming, administration cannot be ruled out. It is not inevitable, and I am not going to start giving percentages of how much it is possible. That is why we are going to court to clarify our position on the sale of the club, and we have to win in court, and we will win in court."[LNB]Broughton admits the consequences of administration would be 'catastrophic' [LNB]"Going into administration needs to be avoided at all costs, as the negative impact would be catastrophic," he said.[LNB]"Setting aside the nine-point deduction, it would have an impact on Liverpool's value and be wide open to predators, whereas we have what we believe is the right new owners to take the club forward."[LNB]Should Hicks and Gillett fail, NESVs takeover could be completed shortly afterwards as their proposed directors John W Henry and Tim Werner, have been cleared by the Premier League to take control of the club under its Owners and Directors test.
