From The Observer. Not sure if this has been posted.
http://football.guardian.co.uk/News_Story/0,,2247768,00.html"DIC 'still intent' on Liverpool takeover
Duncan Castles
Sunday January 27, 2008
The Observer
Dubai International Capital remain intent on a takeover of Liverpool, regardless of their disappointment with the nature of the £350million refinancing deal with which the club's American owners have secured their immediate tenure there.
Tom Hicks and George Gillett Jr announced the new 18-month 'market-rate' loan on Friday, the former describing it as 'a strong vote of confidence in the club's financial strength'.
DIC, however, regard it as an expensive holding measure that will cost the club around £28m a year in interest, yet fail to solve Liverpool's requirement for significant new capital.Article continues
Underwritten by the Royal Bank of Scotland and US bank Wachovia, the loan provides limited additional resources for a club in need of significant investment in the playing staff and a new stadium expected to cost a further £300m. As Liverpool's total debt stood at £297m before the refinancing package was agreed,
it delivers a maximum of £53m of new money. Around £20m is thought to have been used up by the arrangement fee on the new loan.While concerned club officials insisted that £245m of the debt was placed against Hicks and Gillett's holding company Kop Football Limited, it is understood that interest payments will be made entirely from club income. As such these will swallow up almost all of Liverpool's projected profits for the 2007-08 financial year.
Though the banks required Hicks and Gillett to increase their personal guarantees on the debt to £225m,
it is understood that the Americans have not spent any of their own money on the club with the £20m equity each had to inject into the new deal coming in the form of personal loans, repayable by the club to them in the event of a further takeover.The new 71,000-capacity stadium at Stanley Park will not be realised without another large tranche of debt. Though the stadium design announced on Friday has been downgraded from architects HKS' original proposal, it is still expected to cost a total of £350m. A spokesman for Hicks said that £50m of that sum has already been spent on consultancy and design. Further planning permission is required on the new structure.
DIC consider the refinancing a waste of club money that could have been spent on the team or the stadium and attempted to prevent it by offering to buy the club for £500m last week. Sources at the Arab investment group insist that Hicks and Gillett indicated their intention to sell during takeover talks, but only after the new loan had gone through.
Led by Liverpool supporter Sameer Al Ansari, DIC thought it had agreed a deal to buy Liverpool in late 2006, only for majority shareholder David Moores to sell to Hicks and Gillett. The Americans paid £174.1m for the shares, taking on outstanding debts of £44.8m and undertaking not to borrow any money against the club. On Friday, Kop Football Limited restated that debt at £60m.
Hicks also moved to reassure Rafa Benítez of his 'continuing and enthusiastic support' as manager, after earlier admitting that he had talked with Jurgen Klinsmann about replacing the Spaniard. Benitez has said little about the refinancing, though he suggested his desired £17m full transfer of Javier Mascherano would have to be partially funded by Mohamed Sissoko's proposed sale to Juventus.
Asked last night if Hicks now intended to sell Liverpool, his spokesman said: 'Tom Hicks is not a seller of Liverpool Football Club and he is certainly in it for the long term.' He declined to comment on how interest payments on the £350m would be funded, how much new money would be available to Liverpool, or whether the owners had invested any of their own cash in the club. Gillett, unhappy with some of his partner's recent actions, has yet to comment publicly on the revised plans."
I'm disgusted.
