LFC Civil War for Dummies

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•Liverpool’s chairman Martin Broughton, along with Purslow and Ayre, believe Hicks and Gillett have no legal right under the Companies Act to remove Purslow and Ayre.
•If Broughton-Purslow-Ayre win this legal skirmish – and their lawyers believe they can – then the trio will remain on the board and should be able to vote 3-2 against Hicks and Gillett in favour of one of the two bidders. In that scenario, the end is nigh for the Americans, perhaps to be replaced by other Americans.
•If Broughton-Purlsow-Ayre lose the legal battle for their places on the board, Hicks and Gillett will install two of their own directors, Hicks Jnr and McCutcheon, guaranteeing the Americans a 4-1 majority in any vote on any board matter, including the sale of the club.
•If the board changes in the Americans’ favour, the fate of Liverpool will fall into the hands of RBS. The Americans loans are due to be repaid by 15 October. If they can’t pay, RBS has to decide whether to “roll over” the debt (ie: extend the time for repayment), or call in the loans.
•RBS will be loathe to give Hicks and Gillett more time. If RBS calls in the loans and Hicks and Gillett cannot pay, then the Americans shares become worthless and RBS will take over. It is presumed the bank would then sell quickly to one of the two bidders now in the frame.
•The only scenario where the endgame isn’t nigh is if Hicks and Gillett succeed in ousting two board members, then find a lender to re-finance them. Twice already, Liverpool’s board has blocked refinancing. With the board altered, a hurdle would be cleared, but finding a lender won’t be easy.

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