Liverpool FC Forum

by **Benny The Noon** » Tue Aug 03, 2010 3:57 pm

Investors deem Liverpool shares ''worthless''

By Harry Harris, Football Correspondent

August 3, 2010

Liverpool's potential investors, a Far East Sovereign Wealth Fund that includes Kenny Huang, are looking to secure a takeover of the club at a knockdown price.

The investors intend to use their funds to pay for the new stadium and new players rather than line the pockets of owners George Gillett and Tom Hicks as the shares are "worthless".

"The owners will be a Far East Sovereign Wealth Fund of which Kenny Huang will be one of two main partners and owners of Liverpool football club,'' a source close to the talks revealed. "The Sovereign Wealth Fund has been in touch with the Royal Bank of Scotland and the Liverpool board to inform them that they do not value the equity of the company higher than the debt.

"The debt stands at around £350 million and at the moment the valuation is based on between 80p to £1 in the pound, but no more. In layman's terms the shares are worthless, and therefore there is no offer to the current shareholders."

That means that the offer from the Sovereign Wealth Fund is to cover all of Liverpool's current debts, most of which are with the RBS at close to £240 million. A guarantee that RBS will get its money back is extremely appealing to the bank, but not to Hicks and Gillett.

"The problem for the bank is that if this offer is not accepted soon, then the value drops, it drops if it goes past the point where investment cannot be made in new players, and to persuade the best players to stay,'' the source added. "You can understand why Gillett and Hicks would say no, because they want some value from their shares.

"It has been suggested there are alternative bids, but from the Sovereign Wealth Fund's perspective, that's fine. If they do not materialise there is a danger that the financial crisis will depend upon the extent that Liverpool go into distress.

"The new chairman was appointed by the bank as part of their agreement to extend the loan facility, but it has now emerged that the bank can call in part of that loan in October. If Liverpool do not accept this deal which is on the table, then the alternative could be dire, if they cannot find an alternative buyer.

"The board are faced with a stark choice, they could be faced with a sharp dip in valuation of the company, top players leaving and little funds to buy new ones. What this takeover will provide is the funds to start construction on a new stadium which is long overdue. This is crucial. You are not in the game if you do not have a modern stadium.''

by **Benny The Noon** » Tue Aug 03, 2010 3:59 pm

Oh BTW it seems there is a board meeting this afternoon and another one tommz as the yanks cant get a conference call for today so have to do it tommz ?!

by **Reg** » Tue Aug 03, 2010 4:02 pm

You can trust 'Kenny the Spiv', we're safe in his hands. :;):

by **roberto green** » Tue Aug 03, 2010 4:06 pm

TBH I like Lakes,OK sometimes I do wonder about his unofficial BBC Sports gossip from the chef tea lady at the BBC but it's no more than the :censored:

we read on the back of the tabloids and Lakes has had a few right in his time.This forum needs people like him and I have noticed how some are ganging up on him.

Give him a break!!

by **lakes10** » Tue Aug 03, 2010 4:13 pm

Reg wrote:You can trust 'Kenny the Spiv', we're safe in his hands.

funny that. i dont

I am getting the feeling that theres a better offer on the table and this Keeny got wind of it and run to the press to say he is buying to try and put the others off.

by **devaney** » Tue Aug 03, 2010 4:18 pm

roberto green wrote:TBH I like Lakes,OK sometimes I do wonder about his unofficial BBC Sports gossip from the chef tea lady at the BBC but it's no more than the we read on the back of the tabloids and Lakes has had a few right in his time.This forum needs people like him and I have noticed how some are ganging up on him.

Give him a break!!

Fk orf he's an annoying g.it !!!!!!! LOL

by **Johnny Boy** » Tue Aug 03, 2010 4:20 pm

I honestly think if there is a proper offer being made we would not know about it.
Broughton has said as much in the past, that a serious bid would never be made public.

It could be there is one or maybe more than one - but I think it wouldn't be made known if there was.

by **lakes10** » Tue Aug 03, 2010 4:23 pm

Johnny Boy wrote:I honestly think if there is a proper offer being made we would not know about it.
Broughton has said as much in the past, that a serious bid would never be made public.

It could be there is one or maybe more than one - but I think it wouldn't be made known if there was.

I know one thing..Broughton is not happy that some have gone to RBS and not the board, and i would not be shock if he puts their offer to the back of the line.

by **Aussie Style** » Tue Aug 03, 2010 4:36 pm

boodiddy1 wrote:Do your self a favour, go to your mates car park. I hope its a multi-storey. Throw yourself off. there's a good boy:)

Pull your head in mate, that's going way too far.

You could always hide his posts..

by **Roger Red Hat** » Tue Aug 03, 2010 4:47 pm

you keep posting whatever you know lakes and to fk with the bully boys. freedom of speech and all that. rubbish or truth it all adds to the story mate.

keep on posting

by **devaney** » Tue Aug 03, 2010 4:50 pm

Lee - you must be a journo !!!

by **lakes10** » Tue Aug 03, 2010 4:53 pm

devaney wrote:Lee - you must be a journo !!!

back off he is my snout

by **SouthCoastShankly** » Tue Aug 03, 2010 5:00 pm

My concerns about the Huang deal centre on his method, or reported method to be more accurate, to obtain the club.

As the times newspaper rightly points out, if Huang purchases the debt only (directly from RBS) then they can forcibly take control of the club by forcing the debtors (H&G) to pay up.

This obviously won't and cannot happen so Kop Holdings Ltd (LFC) will be declared bankrupt and suffer the mandatory 9 point deduction by the FA. Huang's final task will to convince the FA to allow him to take full control of the club.

by **lakes10** » Tue Aug 03, 2010 5:08 pm

SouthCoastShankly wrote:My concerns about the Huang deal centre on his method, or reported method to be more accurate, to obtain the club.

As the times newspaper rightly points out, if Huang purchases the debt only (directly from RBS) then they can forcibly take control of the club by forcing the debtors (H&G) to pay up.

This obviously won't and cannot happen so Kop Holdings Ltd (LFC) will be declared bankrupt and suffer the mandatory 9 point deduction by the FA. Huang's final task will to convince the FA to allow him to take full control of the club.

as the loan has not been called in by RBS no deal on the debt can be done, i do fear that 30th july date may have come into play and thats why he spoke to RBS before going to the club.

by **NANNY RED** » Tue Aug 03, 2010 6:34 pm

ive got a new mate called Dave , :;):

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