Liverpool facing financial meltdown

Club accountants, KPMG LLP, has issued a warning that Liverpool could struggle to refinance their £350m debt, that Tom Hicks and George Gillett needed to buy the club.

There is a July 24 deadline to refinance the massive debt, according to the reports.

Liverpool’s parent company, Kop Football (Holdings Ltd, made a loss of £42.6m last year due to a £36.5m interest payment.

A top City analyst told The Sun: “Unless the owners find more money, the club is facing financial meltdown. Not only are the figures bleak, the future is gloomy too.

“The more you read through the accounts, the more transparent it is that the owners don’t have the resources to meet the targets they’ve set for next year either.

“Everyone associated with Liverpool should be deeply concerned by this set of figures.”

The club’s accountants, KPMG, outlined their concerns by saying: “The group has credit facilities amounting to £350m, which expire on 24 July 2009.

“The directors have initiated negotiations to secure the replacement finance required by the group and these negotiations are ongoing.

“These conditions… indicate the existence of a material uncertainty which may cast significant doubt on the group’s and parent company’s ability to continue as a going concern.”