Liverpool Football Clubs American owners have agreed a deal with both RBS and Wachovia to refinance the existing debt placed upon Kop Holdings LTD after the purchase of the Premier League club by the two businessmen.
The clubs owes two banks a grand total of £350m and has agreed to pay back £60m of the £290 owed to troubled UK bank the Royal Bank of Scotland.
Before the deal was struck this in the past week questions were asked about the two involved banks feelings on extending the loan in the current financial climate, especially considering both owners financial position. However, with promises of £60m to be paid back this year the two financial institutions agreed to refinance the debt that the two owners placed on the club when they took over in 2006.
Although business specialists in the city may say that this is a good thing, showing banks are slowly becoming more flexible with lending, many fans may feel unhappy that the owners who have failed to come up with the funds for a promised new stadium haven’t been called up on the huge debt they have placed on the clubs holding company.
For me this is bad for the club all round. Failure to secure refinancing would force Hicks and Gillett to sell, which now looks unlikely, at least for another year.