4.30 is the deadline by which RBS need to be paid before Liverpool is sent into administration due to its outstanding debts. Administration would mean a 9 point penalty for the club leaving them clinging on at the bottom of the premiership.
The clubs sale to NESV, whose £300m would pay off the debt, was blocked despite British judge ruling in Broughton and RBS’s favour over Hick’s attempt to disrupt the sale. The judge said that it would be ‘inappropriate’ for Hicks and Gillett to appeal against his decision. Hicks and Gillett instead of appearing in the UK to defend their position went to a court in Texas to obtain an injunction. In a development that shocked NESV and the Liverpool board who appeared to be meeting to finalise the sale, Judge Jim Jordan gave a temporary injunction against the sale until a hearing had taken place on the 25th of October.
Hicks and Gillett also wanted to claim $1.6bn (£1bn) in damages from the board, rbs and nesv, calling the sale an ‘epic swindle’. The injunction has been provided on the argument that Broughton and his board have ‘seriously undervalued the club’ in their sale for £300m to NESV. Hicks and Gillett appear to have done some creative calculating of their own to inflate estimates of the clubs value despite no offers being made beyond the £300m bid by NESV and the £320m late offer from billionaire Singapore business man Peter Lim, which was later withdrawn. The Texan judge seemed to have been given an extremely partial version of events, with Hicks being rather economical with the truth of the situation.
The Liverpool board vowed to overturn the injunction and was due in the Dallas court today at 1pm to provide their arguments against the ruling. A British high court judge condemned Hicks and Gillett for obtaining a restraining order in a Dallas court. Judge Floyd said their actions were ‘unconscionable’.
The UK Judge went on to say, ‘I take RBS’s point that this case has no real connection with Texas. They are right that the commencement of proceedings in the Texan court is an attempt by the owners to depose them of their gains so far in English litigation.’
Judge Floyd ordered them to withdraw the US petition blocking the sale by this afternoon which may be too late for the paperwork for the sale to be processed in time for Liverpool to avoid administration. NESV hoped that if they were able to present the Texan judge with the ruling of the UK court he could throw it out and allow the sale to complete this afternoon.
There are now reports that Hicks may have withdrawn the injunction but no news so far on progress of a sale. Hicks will still be pursuing his claim for damages despite dropping the injunction calling the proposed sale ‘illegal’.
We now wait to see if the sale will be concluded before Liverpool takes a 9 point plunge.
