Dubai International Capital (DIC) could find itself in a considerably stronger position than it had hoped in its takeover bid for English footballing giant Liverpool FC, with the current owners’ refinancing deal said to be on the verge of collapse.
American owners Tom Hicks and George Gillett Jr are attempting to refinance debt incurred in the takeover and running of the club.
The pair paid $340 million for the club at the beginning of last year and agreed to take over $87.7 million of debt, but the takeover was funded entirely with borrowed money.
Current market conditions have made refinancing difficult, but a deal with Royal Bank of Scotland (RBS) and investment bank Wachovia Hicks and Gillett had hoped would solve their problems has now hit a “last minute hitch”, the UK’s Daily Telegraph reported on Tuesday.
And according to the newspaper, the pair has less than two-weeks before the loan is due to be repaid, and not till the end of February as has been widely reported.
Hicks and Gillett are personally liable for the loan, which reports claim has swelled to around $685.2 million.
The situation could force the owners to consider a 350 million-British pound ($678 million) that DIC is reportedly preparing for Liverpool – a year after being squeezed out by the Americans.
The DIC has yet to make a formal offer for the club, although there have been tentative negotiations with Hicks, according to reports.
Hicks and Gillett insisted on Monday negotiations with RBS and Wachovia remained on course and that they were committed to the long-term future of the club.
The club’s growing debt and public disagreements with popular manager Rafael Benitez have led to criticism of the owners by fans, and Liverpool captain Steven Gerrard admitted on Monday that the off-field problems were affecting the team’s performance.
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