Liverpool FC co-owners George Gillett and Tom Hicks have agreed a deal to repay £40 million of outstanding debt from their refinancing of the club.
The Americans, through the club's managing director Christian Purslow, have been in talks with the Royal Bank of Scotland and US-based Wachovia this weekend over repayments and are set to pay off the amount as part of the agreement for a £350 million loan last year. It is expected that the outstanding £20 million repayments will be paid later this year.
This has reduced the duo's remaining debt to £290 million and will ultimately be reduced to £230 million. It is claimed that the banks have demanded the repayments on the condition of extending the loan. Kop Football Limited - Gillett and Hicks' holding company - made a loss of made a loss of £42.6 million in the year ending July 2008, £36.5 million of which was interest payments on the loan.
It is expected that Gillett used part of the profits from his sale of ice hockey team Montreal Canadiens to fund the repayments.
Meanwhile reports in the US claim that Hicks has received a loan from Major League Baseball after the holding company who own the Texas Rangers, his baseball team, defaulted which could force the sports tycoon to sell his stake in the club.
Last week supporters' groups Spirit of Shankly and ShareLiverpoolFC launched a joint bid to take control of the club's finances in a supporter-led buy out of the club whilst talks between the Americans and RBS were ongoing.
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