Source: Telegraph
Tom Hicks aims to refinance debts in an effort to remain in control at Liverpool
Hicks flew to London earlier this week and met with Liverpool chairman Martin Broughton and the club management team on Wednesday. He is understood to have told them that raising fresh finance to buy out the RBS debt is one a number of options he is considering ahead of the Oct 6 refinancing deadline set by the bank. [LNB]It is unclear whether Hicks is yet in a position to buy out the RBS loans, incurred in the acquisition of the club in 2007. [LNB] Related ArticlesGerrard and Torres to miss clashHodgson admits Liverpool are in 'transition'Beating United means everything, says TorresFernando Torres' faith testedHodgson defends 'diabolical' TorresBirmingham City 0 Liverpool 0The Texan is not thought to have held talks with RBS during his UK visit, but the bank is considering extending its financing to Hicks and co-owner George Gillett in order to provide Broughton with more time to secure a buyer for the club. [LNB]Such a move would undoubtedly prove unpopular with supporters hopeful that Oct 6 would see the bank call time on owners who have become deeply unwelcome on Merseyside. [LNB]Perhaps significantly Gillett has not been part of the talks in London this week and his precise role in the negotiations remains uncertain. His position may be complicated by the fact that he used his 50 per cent stake in the club as security against borrowings he made in order to meet RBS's demand for personal guarantees in a previous refinancing round in 2008. [LNB]Were Hicks to be successful in raising the money to buy out RBS, Broughton and his colleagues on the club board would have to decide whether to attempt to block the deal. [LNB]Broughton, managing director Christian Purslow and commercial director Ian Ayre blocked the American's last attempt to refinance in June. They did so only having taken legal advice from Slaughter & May that they were able to do so. [LNB]Company law requires directors to act in the best interests of the shareholders - in this case Hicks and Gillett - but in some circumstances they can over-ride those concerns if it is deemed to be in the company's interests. [LNB]If Hicks returns with a refinancing deal before Oct 6 they will face the same choice. Broughton is understood to have told Hicks on Wednesday that the board remain open-minded and will listen to any proposal he places before it. [LNB]Broughton, who was appointed in April as a condition of RBS extending the financing to the Americans for six months, has made it clear that he considers the sale of the club to an owner who removes the club's debt and allows investment in a new stadium to be the best deal for Liverpool's future. [LNB]The absence of any buyers willing to meet Hicks' and Gillett's valuation has placed RBS in a deeply uncomfortable position, and despite pressure from supporters there appears to be little appetite within the bank to force the American's into default. [LNB]Bank sources have told Telegraph Sport that taking control at Anfield is their least-favoured option, and that they will consider extending the current financing arrangement if required. [LNB]They have also suggested that they will take a 'more active' role in the sales process, though with just three weeks until the refinancing deadline and a shortage of interested parties that appears to be positioning ahead of a deeply sensitive period. [LNB]While RBS has moved the loans to its 'bad bank', the global restructuring group, Hicks has consistently maintained that Liverpool is a growing and increasingly profitable company rather than a distressed asset. [LNB]His pursuit of a potential refinancing deal indicates his determination to remain involved and recognise value from the club. [LNB]
