I posted below (in brackets)in the Torres/ Gerard thread.
I think the key here is firstly not to underestimate the power of a bank and more importantly not to underestimate people or groups of people who have power or serious influence over the decision makers within the bank.
I stand to be corrected,but L'pool profit/cashflow can easily cover RKH interest liabilites BUT the principal debt is the issue here and what the deadline in October relates to.
Normally a bank is happy to re-finance principal if the interest element is being covered.Why wouldn't they be? Unless they see a serious inability in the future of the debtor to make the payments.A genuine possibility but still unlikely in this case.
H&G want out for a profit (a profit no one banks and fans want them to have).It would NOT get ploughed back into the club.Better to have them walk away with nothing and have a new buyer get the club cheaper/the debt paid off/more residue funds to invest.
I smell a stitch up here (on H&G) ... the financial institutions will not I believe provide H&G with re-finance.There will be high level stuff going on behind the scenes and you can bet your house that UEFA will approve/be informed of the plan because its Liverpool who with a few others (MU/RM/BM/ACM etc) get special treatment.Everyone wins here other than H&G and gets to wave a moral flag in the process.
If you want L'pool to keep on struggling in the medium term then hope for a re-finance rabbit out of a hat.RBS takeover/discounted sale will give them their best hope of rebuilding.
(There will be at least one or two willing buyers in the background.RBS may decide to keep L'pool as a going concern/asset to run in the short to medium term.
The debt to price ratio is nothing like United so they could afford to wait a while once G&H were out of the way.
G&H are public enemies number one.This will be one of those rarest of occasions where a bank forcing administration will be deemed a good guy.
The price will drop,there will be no premium for G&H and a new buyer will be anounced fairly quickly (IMO!).
Rightly or wrongly (wrongly IMO),Liverpool WILL get treated differently/more specially than other clubs would in the same position.It often seems to be the way with most things Merseyside ... they bleat so long and so loud and in unison.[/i])