Liverpool owners warned over debt

Liverpool's two American owners, Tom Hicks and George Gillett, are on the brink of endangering their holding in the club unless they can refinance their debts, it emerged yesterday.

Their parent company, Kop Football (Holdings) Limited suffered a £42.6m loss last year, forecasted their accountants KPMG LLP, despite a record turnover of £159m for the year and a profit of £10.2m for the year.

KPMG warned that the levels of debt "may cast significant doubt on the group's and parent company's ability to continue as a going concern". Hicks was in trouble earlier this year after he defaulted on quarterly interest payments of $10m.

WHAT THEY ARE SAYING
Andy Hunter, the Guardian: "Hicks and Gillett are believed to be close to finalising a refinancing deal with the RBS, but it is dependent on both increasing their personal guarantees on the debt. The pair are in the process of selling various assets in the United States with this aim in mind and believe the promise of significant extra revenue from the new stadium will reassure the banks. Extending the refinancing deal will also enable the pair to continue setting their valuation on Liverpool to any prospective investors."

Oliver Kay, the Times: "There is an acceptance within Anfield that the club are not generating enough money to cover the interest payments of Kop Football (Holdings) Ltd, the club’s holding company. Despite being unable to compete with Manchester City in the race to sign Gareth Barry from Aston Villa this week, Rafael Benítez, the Liverpool manager, has been assured that the owners will provide funds for him to spend in the transfer market this summer." ·