Last Days Of Hicks And Gillett: Restraining Order Withdrawn, Soon-To-Be Former Owners Left To Pursue Damages

Early Friday morning it was announced that a temporary restraining order, granted early this week in a Texas court, had been withdrawn as Tim Hicks looked to sell his shares of the club to Mill Financial, a U.S.-based hedge fund. The Premier League rejected Mill’s request to undergo a fit and proper test, saying they would only work with the Liverpool board.

That setback has left Hicks with little recourse than to accept defeat in the face of today’s deadline to repay loans to the Royal Bank of Scotland. NESV hopes to complete their purchase today, with Hicks and Gillett set to “pursue every legal avenue” for what they estimate to be £1 billion in damages.

After yesterday’s ruling that Liverpool could be sold went against the wishes of Tom Hicks and George Gillett, a Texas court granted an injunction to the Americans, essentially halting the possibility of the club’s sale.

And so Liverpool FC are back in high court today. The Royal Bank of Scotland, to whom the club is in debt, contends that the Texas injunction is inappropriate. It is believed that Mr. Justice Floyd will not overrule his ruling of yesterday, but further action may be needed in Texas.

Liverpool fans, celebrating the exit of the duo they worked so hard to oust, can look forward to the future and what change new ownership might bring to their team. Martin Broughton, chairman, declared that the board will be reconstituted by 8 p.m. tonight—that’s 3 p.m. Eastern—and host a meeting this evening to determine if new owners will come on board by tonight.

New England Sports Ventures, owners of the Boston Red Sox, are still favorites to assume ownership of Liverpool. However, Singapore businessman Peter Lim, believed to have offered a higher bid, is also in the running, as is American hedge fund Mill Financial.

To further complicate matters, Singapore billionaire Peter Lim has offered £320m for Liverpool, plus an additional £40m to allow the club to buy players.

On Friday, RBS is owed £280 in outstanding debts from Kop Holdings. Failure to repay that amount could find the club in administration, though an agreement with New England Sports Ventures to purchase the club would clear its debts.

On Tuesday, Hicks and Gillett had sought to replace directors Christian Purslow and Ian Arye ahead of a meeting to assess two bids to purchase the club. That meeting led to the board approving the bid from NESV, whose ownership of Liverpool was approved by the Premier League last week.

According to Hicks, NESV’s offer should have never been approved, as the board of directors he put in place did not vote on the deal.

That removal was rejected by Broughton, who claims to have been given the sole power to reorganize the board when he was appointed chairman in April.

As published by the club on Thursday morning, Roy Hodgson called the agreement “very positive,” saying he “was delighted to hear the news,” saying “[t]he club will be in pretty healthy situation ... if the sale goes through.”

Just in case Reds supporters were unclear how horrific Tom Hicks and George Gillett were, why not let one of the faces of the club bring clarity:

The last sentence is a bit strange and gets to the paradox of Liverpool’s poor start, though it would be unfair to read Carragher’s comments too literally. If we did, the response could see him casting the ownership turmoil as something standing between the players’ and their ability to move forward. The surely can’t be the case. After all, when was the last time Hicks and Gillett strapped on a pair of boots?

Liverpool chairman Martin Broughton has been making the rounds on Wednesday. Be it print outlets or via video, the man who orchestrated the sale of Liverpool FC has been getting in front of the story, explaining why a club valued by its owners at £600 million was sold for £300 million.

That’s one of many reasons today’s action required some explanation, joining the impending court judgment and the boardroom coup as beguiling parts of this process.

At least, that’s how Broughton described this events which started Tuesday, when Hicks and Gillett attempted to regain control of the club’s board of directors by replacing two-fifths of the panel with pro-ownership members.

The Independent outlines the plot beautifully, a story which starts moments before a board meeting called to consider two proposals to purchase the club.

As compelling as today’s drama surrounding Anfield is how it’s being perceived around England. If today’s layouts from England’s most prominent papers are any indication, there is a bit of caution to the coverage - perhaps an latent feeling that we might not be as close to closure as Liverpool’s announcement hints?

Let’s start with the NPR of British coverage, the BBC: