Can we just clear up one or two issues with regards to our New Trust Worthy owners

[MindGuerrillas]

I agree MG and all fair enough what I take issue with is the way these guys financed this deal in reality and how they assured us the fans it was going to be structured in public. As all proper business plans have exit strategies they also take into account market forces for very large projects whether that is on the finance side or the commodities side, I find it all highly questionable that the building costs has suddenly spiraled because of the "credit crunch"

agreed

[Tom]

bump

[Venton]

I agree MG and all fair enough what I take issue with is the way these guys financed this deal in reality and how they assured us the fans it was going to be structured in public. As all proper business plans have exit strategies they also take into account market forces for very large projects whether that is on the finance side or the commodities side, I find it all highly questionable that the building costs has suddenly spiraled because of the "credit crunch"

Parry said that it wasn't the credit crunch that has caused the costs to spiral. It's building costs and that isn't very surprising.

As for the original financing of the debt, the offer document dated 19 January states:

"To finance the consideration due under the Offer, including (if applicable) the acquisition of shares in Liverpool under the compulsory acquisition procedures set out in sections 428 to 430F of the Companies Act, to finance, after the Unconditional Date only, market purchases of shares in Liverpool, to provide working capital and financing for the general corporate purposes of Kop Football (Holdings) Limited and Kop after the completion of the Offer, to refinance certain existing indebtedness of Liverpool, to finance or re-finance certain pre-construction costs of the New Stadium and other agreed capital costs and to pay certain fees and expenses associated with the Offer, Kop Football (Holdings) Limited has put in place certain facilities.

The facilities (the “Facilities”) are provided under a £298,000,000 term and revolving facility agreement (the “Facilities Agreement”) which was entered into on 6 February 2007 between Kop Football (Holdings) Limited as the original borrower and the guarantor and The Royal Bank of Scotland PLC (the “Lender”) as mandated lead arranger, issuing bank, original lender and
facility agent.

The Facilities are guaranteed pursuant to a guarantee dated 6 February 2007 given by Thomas O. Hicks and a guarantee dated 9 February, 2007 given by George Gillett Jnr. and certain other related Guarantors (as defined in such guarantee).

The payment of interest on, repayment of or security for any liability (contingent or otherwise) due under the Facilities will not depend to any significant extent on the business of Liverpool.

Kop Football (Holdings) Limited entered into an intra-group loan agreement with Kop on 6 February 2007 pursuant to which Kop Football (Holdings) Limited has agreed to lend up to £298,000,000 to Kop. Amounts loaned will bear interest at the same rate as amounts loaned to Kop Football (Holdings) Limited under the Facilities."

So an original loan is taken out which isn't secured against the club itself but that is then refinanced - against the stadium I would imagine which would gain a better rate of interest. The debt was always on the club though.

[Dero]

If only the ****ing Americans had exit strategy, at least we would have something to look forward to.

Are we talking about the club or Iraq?