Source: Team_Talk
Glazers to pay off £220m debt
The Glazer family are set to shock Manchester United fans by paying off £220million of their high-interest PIK loans out of their own pockets.[LNB] Co-chairman Joel Glazer has issued a 'voluntary free-payment notice' to the lending houses that stumped up the loan confirming it will be paid off in full.[LNB]Under the terms of the £500million bond which is United's responsibility, the Glazers could take £70million out of club funds to pay part of the PIK debt, which is lodged against the family.[LNB]However, it does not appear this is the case, even if there has been no comment from United about how the money to pay off the PIKs has been raised.[LNB]It is possible the Glazers could have sold a chunk of the club or sold off other business interests, which include their Tampa Bay Bucaneers NFL franchise, or they might have refinanced.[LNB]More may become apparent later on Tuesday when are due to publish their results for the last quarter to bond holders.[LNB]They are likely to be asked to address the issue in a conference call with investors.[LNB]Many supporters will remain sceptical about the news, which in theory confirms Sir Alex Ferguson's previous claims that he has a large transfer kitty at his disposal.[LNB]Supporters opposed to the Glazers have always claimed that such talk was false, with the money being earmarked for the PIK loans, which are now attracting interest at an eye-bulging 16.25%[LNB]Last month United reported losses of £83.6 million, with more than £40 million attributable to interest payments on the £500 million bond issue, and accrued interest on the PIK loans.
