I thought initially that they were trying this, to get together enough to put down as extra security for refinancing the loan for RBS/Wachovia. But Hicks has said himself that he wants investors to pay off the loans against the Rangers and the Stars.
Assuming that's true and the banks want extra security how easy will it be for them to refinance? RBS may not want to foreclose due to bad publicity but will they really let themselves be held over a barrel by them?
I posted this on the Hicks and Gillett Refinance thread, and I wonder how bad things could get should the 40 US banks refuse to restructure his interest payments for Texas Rangers and Dallas Stars. Since they all come under the umbrella of Hicks Holdings, and I believe that includes us (if not directly, for his 50% shares of LFC, did Hicks Holdings guarantee the loan to Kop Holdings), what would happen then?:
How much will this missed interest payment affect the rest of Hicks' empire? As far as I understand Hicks Holdings LLC is at the top of his business tree, and includes both his private equity businesses and his sports franchises. Hicks insists we are a seperate entity to his other sports business, but surely all his businesses, assets come under the same umbrella which is Hicks Holdings LLC. Therefore I ask the question, does Hicks Holdings act as collateral or guarantee for all his assets in the holding company?
Here is a list of Hicks' empire as it stands to date:
Hicks Holdings LLC, is a Dallas-based, family-owned private investment enterprise headed by Thomas O. Hicks.
1. Majority equity ownership of OCULAR LCD (
http://www.oculardisplaysystems.com/about/board-of-directors.asp)
2. ownership stakes in: ANVITA HEALTH (
http://www.anvitahealth.com/Board_Of_Directors/) an emerging leader in clinical decision support systems;
3. LATROBE SPECIALITY STEEL COMPANY (acquired by private equity companies Hicks Holdings and The Watermill Group in 2006) a leading producer and distributor of specialty steel alloys (
http://www.latrobesteel.com/index.cfm);4. DIRECPATH, a company jointly formed by Hicks Holdings and DIRECTV to provide bundled DIRECTV programming, broadband voice and data services, security and other locally based services to multiple-dwelling-unit residences (MDUs) across the United States.(
http://www.direcpath.com/about-us/corp-profile)
In addition to its private equity investments, Hicks Holdings assets include a number of sports and real estate assets, including majority ownership interest in the Texas Rangers and Dallas Stars, as well as a 50 percent ownership interest in the Liverpool Football League of the English Premier League; and a 50 percent ownership interest in the American Airlines Center. Additionally, Hicks Holdings specializes in urban mixed-use developments and high-end hospitality and residential projects and, through Hicks Trans American Partners, selectively makes corporate and real estate investments in South America.