A very useful Q&A from the Press Association tackles some of the complicated financial questions:
Q. Why are Hicks and Gillett so against the offer?
A. They believe the price of £300million grossly under-values the club - and because they would each take a massive financial hit.
Q. But £300million seems like a lot of money - isn't that far more than they paid for the club in 2007?
A. Yes, they paid £219million, funded entirely by bank loans, but since then the debt has swelled due to interest and other fees to £280million, and they have invested £144.4million into Kop Holdings via a company registered in the Cayman Islands, which was then lent to Liverpool.
Q. What would Hicks and Gillett be left with if the £300million buy-out goes ahead?
A. Around £200million would go towards paying off the Royal Bank of Scotland and Wachovia debts. RBS would be likely to leave around £30million of the debt as a credit facility for the new owners. Only after all the other creditors are paid would any left-over cash go to Hicks and Gillett towards the £144.4million loan they put in.
Q. What about the penalty fees that Hicks and Gillett have built up with RBS?
A. They total around £45million but they would no doubt be subject to legal challenges too.
Q. So what size of loss are Hicks and Gillett contemplating?
A. A sizeable one, even as much as £100million.
Q. What is the next step?
A. The lawyers have moved in with Hicks and Gillett trying to block the board's right to agree a takeover. If they sack the board, then RBS would claim that would put the Americans in breach of their refinancing agreement signed in April.
Q. What if they succeed?
A. Hicks and Gillett are caught between a rock and a hard place. Even if they succeed then unless they have raised funds to pay off their debts by October 15 then RBS will assume control of the club, put Kop Holdings into administration and sell Liverpool themselves - mostly likely to New England Sports Ventures.
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