Wednesday, October 13, 2010

Hicks and Gillett lose High Court Case.

The High Court has granted injunctions that could open the way for the prompt sale of Liverpool FC.
The club's owners Tom Hicks and George Gillett asked a judge to delay the hearing of an application by creditors Royal Bank of Scotland (RBS)for mandatory orders paving the way for a possible sale this week.
But the plea was rejected by Mr Justice Floyd, sitting at the High Court in London.
At RBS's request, the judge imposed injunctions on the two men requiring them to restore the original constitutions of the companies and managing directors.
This removes the final stumbling block to a £300 million takeover by New England Sports Ventures (NESV), which will see the RBS recoup its original £237 million loan to Mr Hicks and Mr Gillett when they bought the club in March 2007.
Mr Justice Floyd rejected applications by the owners for an injunction to halt the sale negotiations until they had attended a board meeting and there be further discussions over any sale agreement. "I am not prepared to grant any relief. If I did it would risk stopping the sale and purchase agreement going ahead." He said this would result in potential serious damage to the club and RBS.
The owners were refused permission to appeal. The judge said it would be "inappropriate in the circumstances" for him to grant leave, and they would have to apply to the appeal court for permission.
There were chaotic scenes outside the Royal Courts of Justice in the Strand when more than 100 Liverpool fans mobbed club chairman Martin Broughton, singing: "We love you, Martin, oh yes we do."
Security guards tried and failed to move the crowd blocking the entrance as they then broke into the Liverpool anthem You'll Never Walk Alone.
Lord Grabiner QC, who represented the companies controlling the club, put the costs of the action at between £250,000 and £500,000.

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