Glazers seek fresh funds to see off Red Knights and reduce Man United debt

18 March 2010 09:07
The Glazer family are looking at new ways to remove Manchester United's huge debt burden, it has been reported.

A move to refinance high-interest loans could help to see off a takeover bid by the Red Knights, the group of high-rolling United fans.

The owners could further anger supporters by again raising ticket prices.United have already raised £500million in a controversial bond issue earlier this year, which reserved the right to sell Old Trafford and the club's Carrington training base among other measures.

Fresh funds: The Glazer family, with Avi (C) and Joel (R) alongside chief executive David Gill, want to reduce Manchester United's debts

And now The Times reports that the Glazers' inner circle have begun discussions on how to get rid of 'payment in kind' (PIK) loans that the newspaper says could total £588m by the time they are due to be repaid in 2017.

The PIK debt, set at £202.1m in the latest accounts, is increasing at a painful annual interest rate of 14.25 per cent.

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Source: Daily_Mail

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