Well for those who think RBS are in control, I just can't see it.
RBS calling in the loans would mean that RBS sacrifice millions and millions in interest payments that they could get if they didn't call in the loans. Are they willing to do that? Probably not.
You underestimate the power of negative publicity to a company (i.e. bank). And boy have RBS had their fair share in the last year or so (with regards the banking collapse). They'll be trying their damdest not to court anymore.
Ask yourself the following questions. Why did RBS insist on bringing in Purslow to help sell LFC? When it became obvious nothing was happening. Why did RBS then insist on bringing Broughton on board to sell LFC? These aren't the signs of a bank not being afraid of negative publicity/campaigns against them & instead happy just to sit there & watch the interest pile up.
But if they did, then Hicks and Gillett would have to sell to pay back the loans, right?
Err no. They have enough collateral, that they can just borrow the money from another bank, and pay off RBS with what they've borrowed. THe situation will be the same or worse, because the new loan will probably be an even higher interest loan, and LiverpoolFC will have to pay that off. We're already paying over 2m a month (imagine if we didn't have to pay that interest...over 24m added to the transfer kitty every year...if only)
If it's that easy to do (taking into account today's financial climate & knowing the campaign we have against a rival bank, i.e. RBS) why haven't they done that already. Why aren't other banks rushing to help out Hicks with his aims?
And you forget another small matter in all this. Gillette wants out, now! For Hicks to tranfer the loans to another bank (if such a stupid bank existed), wouldn't he need the approval of Gillette?
