Author Topic: Liverpool owner Hicks selling Texas Rangers shares  (Read 275981 times)

Online HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #840 on: April 20, 2009, 08:32:06 pm »
I believe the gist of that report is here:

Monday, April 20, 2009, 2:04pm CDT
Hicks Sports Group's problems date to last summer
Dallas Business Journal - by Daniel Kaplan SportsBusiness Journal

A federal bank regulator last summer, before the credit markets imploded, downgraded the $515 million of debt carried by Hicks Sports Group, which owns the Texas Rangers and Dallas Stars, financial sources said, signaling that the problems at the financially troubled company predated last month’s loan default.

HSG failed to make an interest payment on March 31. While tight credit markets are a major factor in the inability of team owner Tom Hicks to get banks to relax loan terms, HSG’s problems were festering before the economy tanked last fall, the financial sources said.
 
Last summer, the Office of the Comptroller of the Currency downgraded the loans to nonperforming, sources in the HSG bank group said. The OCC conducts periodic reviews of syndicated loans on bank balance sheets, known as Shared National Credits.The OCC declined a Freedom of Information Act request by this publication to see the downgrade, saying loan actions were not public information. A Hicks spokesman declined to comment on the downgrade.

An OCC downgrade to nonperforming means “the borrower is highly unlikely to support the underlying obligation,” said Irwin Kishner, chairman of the corporate practice at New York-based law firm Herrick Feinstein. As part of its mandate to regulate banks, Kishner said, the OCC reviews loans at banks and, as with the case of HSG, can judge them to be in trouble. That means the banks in the syndicate have to set aside more cash to cover potential losses.

Hicks has been funding operating losses for HSG’s teams out of his own pocket at least since the summer and likely far longer. Like many wealthy owners, the stock market declines have eaten into his fortunes and have made him more reticent to continue covering his teams’ red ink.

In a statement, Hicks said he voluntarily missed the interest payment to force the lenders to allow him to tap an interest reserve and to modify covenants.

Already having had to set aside cash because of the OCC downgrade, twinned with the clenched credit markets, the banks are unlikely to greet Hicks’ pleas for leniency with much sympathy.

“It’s one of the more foolish moves I have ever seen,” said one banker from a bank in the loan group who requested anonymity because he was not authorized to speak, of Hicks voluntarily defaulting on the loan.

Financial institutions in the syndicate include JPMorgan Chase and Galatioto Sports Partners. A spokesman for JPMorgan did not return calls. GSP declined to comment.

One banker not in the bank group suggested that what Hicks might be trying to do is force the banks to sell the loans at a discount, and he could then swoop in to buy them. But Hicks also has nearly half of each of the Rangers and Stars on the market and may be just trying to buy time to raise the money to pay off the debt.

Hicks’ half-ownership of Liverpool FC is not housed in HSG.

At the end of the month, the banks could move to foreclose on the teams if they do not reach agreement with Hicks. To do so, however, would require going through the leagues, which historically have been opposed to banks taking possession of teams.

The NHL referred questions to the Stars. MLB executives declined to comment.

http://www.bizjournals.com/dallas/stories/2009/04/20/daily10.html
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Offline west_london_red

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #841 on: April 20, 2009, 09:47:10 pm »
How can the banks be unable to foreclose unless the league lets them? The league dont own the club.
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Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #842 on: April 20, 2009, 10:10:12 pm »
So basically he's in deep shit. Should we send this to the UK papers? RBS anyone? The Kuwaitis?   :wave

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #843 on: April 20, 2009, 10:20:51 pm »
From the article above:
Quote
One banker not in the bank group suggested that what Hicks might be trying to do is force the banks to sell the loans at a discount, and he could then swoop in to buy them.

How can the banks allow Hicks to do this? It's implying the banks must be mentally deficient.
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Online HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #844 on: April 20, 2009, 10:21:57 pm »
So basically he's in deep shit. Should we send this to the UK papers? RBS anyone? The Kuwaitis?   :wave

Good idea. Are you able to contact Oliver Kay?
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Offline west_london_red

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #845 on: April 20, 2009, 10:42:10 pm »

How can the banks allow Hicks to do this? It's implying the banks must be mentally deficient.

Might not be a bad thing for us. If he tries doing that in the US and gets away with it, I can see RBS runing a mile in case the same thing happens to them and he decides hes going to stop paying the loans back volunteerily to back the banks into a corner.
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Offline belfast-connection

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #846 on: April 21, 2009, 12:28:10 am »
Might not be a bad thing for us. If he tries doing that in the US and gets away with it, I can see RBS runing a mile in case the same thing happens to them and he decides hes going to stop paying the loans back volunteerily to back the banks into a corner.

very good point actually

imagine the press if we default on loans to RBS

imagine the press if did it deliberately in order to back them into a corner

'Liverpool owners think they're better than the man in the street ' etc. etc. etc.
HE SAID ‘BIGGER’ PEOPLE ‘BIGGER’. OK, MOVE ALONG PEOPLE, THERE’S NOTHING TO SEE HERE

Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #847 on: April 21, 2009, 08:02:02 am »
I could spend an idle moment sending that article to a few journos of my acquaintance, though I imagine quite a few might have seen it already. Anyone got access to the original Sports Business News report?

Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #848 on: April 21, 2009, 09:13:08 am »
Quote
One banker not in the bank group suggested that what Hicks might be trying to do is force the banks to sell the loans at a discount, and he could then swoop in to buy them.

Quote
Quote from: west_london_red on Yesterday at 10:42:10 PM
Might not be a bad thing for us. If he tries doing that in the US and gets away with it, I can see RBS runing a mile in case the same thing happens to them and he decides hes going to stop paying the loans back volunteerily to back the banks into a corner.

Except he can't do that in the UK. He won't be able to buy the loans on LFC for a discount because he will be competing against other buyers for them - £300m for LFC - £150 for a half-share. Even Gillett could buy out half the loan at face value.

Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #849 on: April 21, 2009, 11:38:59 am »
Did you do it to The times address Harry? It's not the best one to contact him at. If you don't have an acknowledgement in a day or two let me know.

Offline Sing A Song of Torres

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #850 on: April 21, 2009, 05:35:50 pm »
A question for Harry, 666, WLR and anyone else who can shed light on this...

Back when H&G first got the £350m loan from Wachovia/RBS there was a lot of speculation that the poorer-of-the-two Gillett was the one who had to scramble to pull together more personal guarantees for the banks to agree to the deal. But (and this is a big assumption), if Gillett sells the Canadiens and the Bell Centre before July and Hicks continues his mucking about with the forty lenders, it will likely reverse the perceptions of who's the lower risk of the pair.

Any idea of the mechanics of what happens in terms of control of shares if say Gillett can meet the guarantees for renewing the loan and Hicks can't? Or even the other way around? Do the banks have any authority to force one to sell to the other, quite apart from selling to a third party?
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Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #851 on: April 21, 2009, 05:56:01 pm »
I know not, Songful Torres. I suspect this is in the fine print none of us is party to.

Offline west_london_red

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #852 on: April 21, 2009, 06:01:36 pm »
A question for Harry, 666, WLR and anyone else who can shed light on this...

Back when H&G first got the £350m loan from Wachovia/RBS there was a lot of speculation that the poorer-of-the-two Gillett was the one who had to scramble to pull together more personal guarantees for the banks to agree to the deal. But (and this is a big assumption), if Gillett sells the Canadiens and the Bell Centre before July and Hicks continues his mucking about with the forty lenders, it will likely reverse the perceptions of who's the lower risk of the pair.

Any idea of the mechanics of what happens in terms of control of shares if say Gillett can meet the guarantees for renewing the loan and Hicks can't? Or even the other way around? Do the banks have any authority to force one to sell to the other, quite apart from selling to a third party?

The club is owned by Kop holdings so as long as it can get the gurantees together (be that between G&H or a 3rd investor) the banks would probably renew.

However, if one owner gets his half of the gurantees together and one doesnt, and no one (including the other owner is willing to help out) that would mean the gurantees have not been met. If one owner puts up more then 50% of the gurantees because the other cant raise enough, they would have to decide between them any transfer of shares to compensate for putting up more of the gurantees.
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Offline Sing A Song of Torres

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #853 on: April 21, 2009, 06:25:13 pm »
Thanks to you both for the replies. With the accumulation of information shared and learned during this fiasco, I wouldn't be surprised if we all immediately qualified for honorary MBAs.
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Offline Stevie07

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #854 on: April 21, 2009, 07:14:45 pm »
Apparently Hicks is at Anfield tonight, maybe something is afoot?

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #855 on: April 21, 2009, 07:16:15 pm »
Apparently Hicks is at Anfield tonight, maybe something is afoot?

yep, there is a game on

Offline Stevie07

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #856 on: April 21, 2009, 07:21:03 pm »
yep, there is a game on

I bet he couldn't care less about that

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #857 on: April 21, 2009, 07:23:13 pm »
I bet he couldn't care less about that

He will be over hear showing strength i imagine.

Cant see news on new owners just yet

May 25th more likely

Offline Stevie07

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #858 on: April 21, 2009, 07:26:34 pm »
If true, I find it strange the echo haven't said anything, there is usually mention of it when one or both of them come over. I just wish they'd fuck off to be honest.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #859 on: April 21, 2009, 07:27:59 pm »
If true, I find it strange the echo haven't said anything, there is usually mention of it when one or both of them come over. I just wish they'd fuck off to be honest.

with a chance that they could be the proud owners of the EPL champions.... they will cling on

Offline Stevie07

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #860 on: April 21, 2009, 07:36:14 pm »
with a chance that they could be the proud owners of the the league champions.... they will cling on

I know what you mean but surely they'd be cutting it fine if they didn't find some form of investor/buyer before then?

Maybe that's being hopeful though.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #861 on: April 21, 2009, 09:58:56 pm »
Hicks and Gillett next to each other, from sky sports

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #862 on: April 21, 2009, 10:14:53 pm »
Yeh I saw that, two guys who looked fucking awful, as if it's all crumbling around them

Offline 12Kings

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #863 on: April 21, 2009, 10:23:27 pm »
Liverpool owners sit together at Anfield for Arsenal game
43 minutes ago
LIVERPOOL, England — Liverpool's bickering American co-owners sat together at Anfield on Tuesday for the first time this season as their English football team hosted Arsenal in the Premier League.
Tom Hicks and George Gillett Jr. have been at odds over the direction of the club for much of the last two seasons. Tuesday's visit came as a July deadline approaches to refinance the loan that funded their takeover of Liverpool two years ago.
Also in the directors' box was Amanda Staveley, who was the chief negotiator for last year's failed takeover bid by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum. Staveley negotiated the Abu Dhabi United Group's buyout of Manchester City last year.
Hicks and Gillett have been assessing their personal financial situations amid the global economic crisis.
Gillett has appointed financial advisers to explore a recapitalization of his assets, which could include the sale of the Montreal Canadiens. And Hicks' company that owns the Texas Rangers and Dallas Stars has defaulted on about US $525 million in loans.
Copyright © 2009 The Canadian Press. All rights reserved.

Offline shelovesyou

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #864 on: April 21, 2009, 10:50:12 pm »
Staveley was at the game tonight .........

whats all that about ? ?
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Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #865 on: April 21, 2009, 11:09:27 pm »
Is there a pic of her there? I'd be interested to confirm this.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #866 on: April 21, 2009, 11:15:53 pm »
Expect a big announcement in the next day, thats the info i have recieved tonight.

Don't shot me just passing it on

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #867 on: April 21, 2009, 11:17:49 pm »
Is there a pic of her there? I'd be interested to confirm this.



Yup, sitting next to Hicks jnr.
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Offline electricghost

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #868 on: April 21, 2009, 11:18:31 pm »
Expect a big announcement in the next day, thats the info i have recieved tonight.

Don't shot me just passing it on

Cheers SL, can you give us any more info or is that it? You know we have to ask ;)
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Offline finchie

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #869 on: April 21, 2009, 11:21:17 pm »
Are we sure that's Staveley? I'm not.

Offline guyko21

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #870 on: April 21, 2009, 11:22:02 pm »
Yeh I saw that, two guys who looked fucking awful, as if it's all crumbling around them
Has to be said, I agree.  Hicks in particular looks palid. 

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #871 on: April 21, 2009, 11:22:07 pm »
Cheers SL, can you give us any more info or is that it? You know we have to ask ;)

Got told tonight prior to the game expect some kind of annoucement tomorrow reference the future of the club.

Offline chanti

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #872 on: April 21, 2009, 11:23:06 pm »
Tx SL, another sleepless night for me then. ;)

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #873 on: April 21, 2009, 11:23:40 pm »
Got told tonight prior to the game expect some kind of annoucement tomorrow reference the future of the club.

Cheers :wave
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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #874 on: April 21, 2009, 11:24:20 pm »
Got told tonight prior to the game expect some kind of annoucement tomorrow reference the future of the club.
shit


by the way, that was not meant as shit as in what you have said is shit but as in.... shit shitting hell..... wow.... hope so

Online HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #875 on: April 21, 2009, 11:24:23 pm »
Are we sure that's Staveley? I'm not.

Looks like her to me, and Getty Images said so anyway. Of course they may be wrong.
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Offline ShanksLegend

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #876 on: April 21, 2009, 11:26:13 pm »
Yes it was Staveley there was also an Arab there too.

Offline 12Kings

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #877 on: April 21, 2009, 11:27:33 pm »



Yup, sitting next to Hicks jnr.

Not me to speculate to be honest, and I'm sick to death of all this shite..... But

Is it some what symbolic that Staveley is the one wearing the red and whites and not Hicks or Gillett or any of their party..

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #878 on: April 21, 2009, 11:29:59 pm »
Expect a big announcement in the next day, thats the info i have recieved tonight.

Don't shot me just passing it on
Hear hear,next 24-48 hours,but then again,i don't know how many times these lying Kunts have made us look like mugs!!
« Last Edit: April 21, 2009, 11:44:58 pm by Gedo »

Offline wackyraces

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #879 on: April 21, 2009, 11:31:50 pm »
That doesnt look like Staveley unless she has aged 10 years ....in 6 months. 
woke up the next morning with my piss pipe was as hard as stale bread and i banged her like a silver back