Former Liverpool FC co-owner George Gillett reportedly being sued over failure to pay debt
Nov 19 2010
FORMER Liverpool FC co-owner George Gillett is reportedly being sued after failing to repay a debt he owed connected to his investment in the club.
It has been reported Virginia-based Mill Financial is claiming the Canadian businessman owes the company $117 million (£73m).
According to Forbes in a 12-page complaint filed on Thursday in a New York state court Mill Financial claims Gillett Football LLC borrowed $70 million in a January 2008 term loan.
Mill Financial says in the court document that the loan, used to secure his share of the Liverpool club, was due on August 13 but had not been paid in full.
It appears that Gillett entered into a high interest loan that had a huge 19% annual interest rate.
Court papers show that in September Gillett Football LLC paid $431,000.
But Mill Financial says "this amount was not sufficient to cure the default".
After adding on extra fees Mill Financial claims the amount now due is $117m.
For Gillett the Mill Financial lawsuit is the latest dramatic twist in a saga which has dragged on for months in courts from London to Texas.
Gillett and co-owner Tom Hicks lost control of Liverpool in a bitter courtroom battle which ended with the club being sold to New England Sports Ventures for £300m in October.
[url=http://www.liverpoolecho.co.uk/liverpool-fc/liverpool-fc-news/2010/11/19/former-liverpool-fc-co-owner-george-gillett-reportedly-being-sued-over-failure-to-pay-debt
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Doesn't it just give you a warm glow inside reading that?!?!
