Tom Hicks has suffered a major setback in his bid to seize control at Liverpool.
Hicks had hoped to secure a £280million financing package from Blackstone subsidiary GSO Capital Partners and share control of the club, in a move that would have prevented a quick sale of Liverpool.
But Blackstone is no longer pursuing its interest in Liverpool after considering an initial deal, a source told The Associated Press. The person spoke on condition of anonymity because negotiations were private.
Hicks and co-owner George Gillett Jr. are desperate to find the funds to repay the £237m that is owed to the Royal Bank of Scotland by next month. If he can secure the money, Hicks would be able to delay the sale of the club until 2012.
The owners put the club up for sale in April, saying they lacked the funding to take Liverpool forward, on and off the field, due to its debt. Barclays Capital bank was tasked with overseeing the sale process and a new chairman, Martin Broughton, was hired to find a buyer for the club.
However, an inflated asking price in excess of £600m, has put interested parties off. Chinese businessman Kenny Huang and Syrian Yayha Kirdi were both heavilly linked with a move for control of Liverpool over the summer but interest evaporated when they were asked to stump up in excess of £300m.
The lack of formal offers has led to Hicks trying to put together his own refinancing deal – despite opposition from members of the club board he appointed.
Gillett is believed to be struggling to repay back a £75m loan secured against his 50 per cent stake in the club in 2008. Hicks and Gillett bought the club a year earlier in a deal that valued the club at £219m.