19 November 2010
The controversial owners of Manchester United, the Glazer family, are reportedly planning to pay off a
payment-in-kind (PIK) loan worth around £220 million next Monday.
Bloomberg reports that Red Football
Joint Venture Ltd, the Glazer family-controlled parent of Manchester United, said in a corporate filing known
as a voluntary free-payment notice that it will “pre-pay 100 per cent from the outstanding loan on November
22.”
The filing was reportedly signed by Red Football’s co-chairman Joel Glazer and was sent to loan holders.
After buying United for £790 million in 2005, in January this year the Glazers converted a bank loan secured
against the club into a £526 million bond. Today, the Glazers are expected to update bondholders and, under
the terms of the bond, the Glazers can make a one-time withdrawal of £70 million from the club to pay down
the PIK loan but media reports suggest this is unlikely to occur.{jcomments on}
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