Investment firm Rhone Group make offer to cut Liverpool FC's debts

Tom Hicks and George Gillett have been offered a way of relieving the financial pressure at Liverpool after global investment firm the Rhone Group made a £100million-plus offer for a 40% stake in the club.Liverpool's co-owners have been looking for an injection of cash to help reduce the current level of debt leveraged on the club.When they successfully renegotiated the terms of their loan with the Royal Bank of Scotland last summer one requirement was that they had to cut £100million off the £237million debt.Liverpool chief executive Christian Purslow set a deadline of Easter to have secured new finance.After much speculation over the source of potential investors, it is understood the submission from the Rhone Group is the first genuine offer to be received.If the offer is accepted by Hicks and Gillett it would considerably strengthen the club's financial position.The people behind the Rhone Group bid have been keen to stress that the offer comes in the form of fresh money - not borrowed - which would immediately be used to slash Liverpool's debt by nearly half.That would have the effect of immediately making the Merseysiders a more attractive option for outside investment.It would also dramatically reduce the £30million a year interest payments to service the debt and improve the club's appeal to lenders, which could, in turn, lead to cash being secured to finally begin work on the long-awaited new stadium in Stanley Park.

Source: Liverpool_Echo