Glazers may go for more refinancing to ease Man U debts

From ANI

London, Mar.18: The Glazer family are considering a second round of refinancing in an effort to ease Manchester United's huge debt burden.

According to The Times, the American owners also hope that the move would help to stave off a planned takeover by the Red Knights.

Initial talks have taken place within the Glazers' inner circle about how to get rid of their payment in kind (PIK) loans that could total 588 million pounds by the time they are due to be repaid in 2017, The Times has learnt.

No final decision has been taken and a deal could be many months away.

A second refinancing would represent an about turn for the Glazers, who, publicly at least, have shown little concern about the PIK loans until now.

The debt, which stood at 202.1 million pounds according to the latest accounts, is rolling up at an astonishing annual interest rate of 14.25 per cent.

The club's 716.5 million pound total debt has been cited by the Red Knights, a group of City financiers-cum-United fans, as the key driver behind their plans to organise a takeover.


Copyright Asian News International/DailyIndia.com