Friday, April 3, 2009

Quick Throw: Hicks Defaults on Loans

Developing... Conflicting reports indicate Liverpool co-owner Tom Hicks may have defaulted on some of the loans secured by his sports franchises. It is not clear whether these are loans secured by Hicks' interest in Liverpool FC. Hicks denies the default or at least that the banks may soon own the clubs.

All of this may explain the earlier reports that Hicks was seeking buyers for a minority interest in the Texas Rangers baseball team he owns.

UPDATE: This report indicates the loans where an interest payment has not been paid are not connected to Liverpool FC. It is also said that Hicks is attempting to renegotiate terms on these non-Liverpool loans. This does not mean it does not affect Hicks' financing of the Liverpool debt as the debt still needs to be serviced and a default could crimp his cash flow. I really wish I knew what I was talking about.

1 comment:

Mike Georger said...

I saw last week he was trying to sell part of his stake in the Rangers, so I'm not shocked.

He should do what I just did, take a massive loan from Citi and hope they collapse. BULLETPROOF!

.. speaking of which, I'll paypal my money for Baltimore when Citi's check clears on Monday.