Topic: Liverpool does not pay interest?

[Obviously]

Apparently money is not being taken out of the club to pay debt or interest. Or at least that's what i got from it. Can someone who's more capable of actually understanding this article please explain and give their views? when it comes to stuff like this i don't have a clue! But i guess it's bullshit!

some dizzy pointless gobshite's website/2010/05/revealed-proof-that-liverpool-fc-does.html

 Liverpool - kop . com

[Something Else]

obviously its bullshit

[Obviously]

Read some of his comments under the article, and i realized he was a proper c*nt!

[Zeb]

The interest owed on the money 'lent' by H&G' is not being paid. This is because:

1) We can't afford to.
2) We are struggling to pay the interest on the debt owed to the bank which has to be paid first. See point 1.

So instead that interest is added onto the debt owed to H&G where it all rolls up at 10% every year.

[ttnbd]

LFC as a club has paid only £4.1m of interest over the last 2 reported periods.  Neither has there been any cash loaned from the club to the holding companies in the last 2 reported periods.

As such the club has not paid any of the interest in relation to the purchase debt, nor has it's cash been paid to pay down the bank debt.  All that was done by loans from Kop Football (Caymen) Limited.

As for interest due on loans from the owners, this is unlikely to be paid whilst there is bank debt outstanding, it'll be part of the covenants placed on that money as it is the case that the loans cannot be demanded for repayment if it makes the companies insolvent.

And if you don't believe me then just read the accounts.

[lfctitch]

Wait I'm confused, so the profit we made last year went where, if it didn't go to paying the interest? Just how much do we owe the holding company for paying our debts?

[Graham Smith]

LFC as a club has paid only £4.1m of interest over the last 2 reported periods.  Neither has there been any cash loaned from the club to the holding companies in the last 2 reported periods.

As such the club has not paid any of the interest in relation to the purchase debt, nor has it's cash been paid to pay down the bank debt.  All that was done by loans from Kop Football (Caymen) Limited.

As for interest due on loans from the owners, this is unlikely to be paid whilst there is bank debt outstanding, it'll be part of the covenants placed on that money as it is the case that the loans cannot be demanded for repayment if it makes the companies insolvent.

And if you don't believe me then just read the accounts.

Meaning we are just rolling the debt up and up and the only asset avaialble to pay it off (other then the owners if they decided to do so from their own resources rather than more loans) is the Club?

[Dr. Beaker]

This was news a year or two ago.

[KiNki]

LFC as a club has paid only £4.1m of interest over the last 2 reported periods.  Neither has there been any cash loaned from the club to the holding companies in the last 2 reported periods.

As such the club has not paid any of the interest in relation to the purchase debt, nor has it's cash been paid to pay down the bank debt.  All that was done by loans from Kop Football (Caymen) Limited.

As for interest due on loans from the owners, this is unlikely to be paid whilst there is bank debt outstanding, it'll be part of the covenants placed on that money as it is the case that the loans cannot be demanded for repayment if it makes the companies insolvent.

And if you don't believe me then just read the accounts.

cheers tim.

[Chindits]

Yus thank fuck for Tim as all this new fangled money malarkey baffles me.

[Lenstar]

Yus thank fuck for Tim as all this new fangled money malarkey baffles me.

And me. Well and truly confuzzled

[No666]

Meaning we are just rolling the debt up and up and the only asset avaialble to pay it off (other then the owners if they decided to do so from their own resources rather than more loans) is the Club?

So why are we making a loss? where is all the money going?

[Lush is the best medicine...]

haha someone's dumb enough to visit that Antikop twat's site

[redrockydennis]

haha someone's dumb enough to visit that Antikop twat's site

i got a link to it off a google news alert for liverpool fc, gutted.

[Veinticinco de Mayo]

Big thanks for Tim's explanation but I don't think there is anything new here that cannot be discussed in the other "we're fucked" threads