Liverpool loan debt deferred

English Liverpool Football Club owners George Gillett and Tim Hicks have been approved for a six-month deferment on their loan from Wachovia, US investment bank, and the Royal Bank of Scotland of GBP 350.5 million.

The loan, provided in January of 2008 as 'working capital,' was originally due by 25 January 2009. Hicks and Gillett prepared a written request to the lenders asking for repayment grace until 24 July 2009.

The annual interest on the loan is GBP 30 million. It is speculated that further interest fees may be accumulated over the course of this six-month extension. The club hopes that income from participation in the Champions League will assist with the repayment of this debt.

It has also been reported that a loss of sponsorship in Gillett's Nascar team in the United States has removed an avenue of income that could have been used for the repayment of the loan.