Source: Telegraph
Liverpool takeover: Mill Financial approached Premier League to seek approval
The Premier League declined to consider whether Mill's representatives would be suitable directors because they did not have the authorisation of the Liverpool board. [LNB]Mill looked to seek pre-approval so that they were in a position to complete a deal for the club today. [LNB] Related ArticlesHenry vows to keep fighting for LiverpoolLiverpool future to be decided in DallasHicks and Gillett go back to Dallas courtHigh Court victory, again, for LiverpoolLim withdraws bid for LiverpoolLiverpool back in the High CourtA spokesman for the Premier League said: "We will continue to deal directly with the board of Liverpool Football Club and take direction from them with regard to any ownership issues."[LNB]This follows after uncertainty over Liverpool's future deepened this morning when Tom Hicks and George Gillett lifted the Texas injunction preventing the sale of the club. [LNB]The move opens the way for Hicks and US hedge fund Mill Financial, which is understood to have assumed control of Gillett's 50 per cent stake in the club, to attempt to derail the deal with New England Sports Ventures. The two sides are now appear to be engaged in a race against time to win control. [LNB]While the restraining order prevented NESV from doing a deal it also stopped RBS from doing a deal with anyone, so its removal was necessary to facilitate any kind of deal. [LNB]Hicks and Gillett are due to repay at least £200m of loans to RBS by close of business today. If they fail their leverage in the negotiations may be reduced, but RBS would have to exercise its security against the club, possibly by way of administration, to cut them out of the picture entirely. [LNB]Sources close to NESV and the club board said this morning that they believed the lifting of the order was intended to allow Hicks to launch a final effort to remain in control. [LNB]Hicks' and Gillett's London solicitors Peters and Peters emailed club directors and RBS this morning to inform them that their clients had complied with the order made by Mr Justice Floyd in the High Court yesterday. Their action appears to render this afternoon's Dallas court hearing into the case irrelevant. [LNB]Hicks and Mill are understood to have been in talks for some time over a deal, and their last-ditch efforts over night have unsettled NESV. In a tweet this morning John W Henry said he would fight for the club. [LNB]"We have a binding contract,' he said. 'Will fight Mill Hicks Gillett attempt to keep club today. Their last desperate attempt to entrench their regime." [LNB]NESV believe any such attempt by Hicks would have to be ratified by the Liverpool board and they would be prepared to return to the High Court to have their binding agreement, twice ratified by the board, upheld. [LNB]Hicks and Mill Financial's chances of success appear to rest on their finding a way of repaying RBS that the bank is obliged to accept and the club board cannot stop. [LNB]The terms of the club's financing with RBS, defined in a Corporate Governance Side Letter (CGSL), give Martin Broughton and his fellow non-English directors sovereignty over the articles of the companies and the sale process. [LNB]Mill Financial is understood to have already offered to repay the debts but was told by RBS that it had to first buy Hicks's shares. [LNB]Sources said today that Broughton and the board should be able to stop this transaction and yesterday sources close to Hicks said he had not sold them the shares. [LNB]That could leave Mill Financial having to repay the loans on a promise that Hicks would then sell them on his take in the club at a later date. If RBS were repaid in a way that bypassed the club board it is hard to see how the bank could impede the sale. [LNB]It is thought that any decision would still need to go before the club board, though with RBS repaid Broughton's sovereignty would be in doubt. NESV would also be certain to seek to invoke an agreement they believe is binding. [LNB]The club's fate now rests on the legal discussions taking place on London and Dallas. Ultimately it may depend on whether Hicks and Mill Financial are able to get £200m to RBS before NESV can. [LNB]
