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Liverpool reject administration fears

American co-owners George Gillett, left,and Tom Hicks put Liverpool up for sale in April.
American co-owners George Gillett, left,and Tom Hicks put Liverpool up for sale in April.
STORY HIGHLIGHTS
  • Liverpool reject claims they will sink into administration in October
  • According to accounts released in June 2009 the English club's debts are $462 million
  • American owners George Gillett and Tom Hicks are trying to sell the club
  • Liverpool say they have a "healthy business" and "record revenues"

(CNN) -- Liverpool have rejected fears they face plunging into administration if the club isn't sold by October.

The English Premier League club were officially put up for sale in April by American co-owners George Gillett and Tom Hicks, but have yet to find a buyer.

Recent reports claimed Hicks was trying to reorganize his loans in an attempt to buy out his partner but Liverpool's managing director Christian Purslow says neither party will be able to use any of the club's assets as security.

The owners have been repeatedly criticized by Liverpool's fans for the amount of debt they loaded onto the club and former manager Rafael Benitez, who left in June, was quoted by Reuters.com as saying the directors "knew nothing" about football.

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Accounts published in June 2009 revealed the club's debts were $462 million and that they had paid $54 million of interest payments to the Royal Bank of Scotland (RBS), to service an estimated debt to the bank of around $377 million.

The loan is due for repayment or renegotiation in October, leading some to predict further financial difficulties, but managing director Christian Purslow says the club is in good health.

"Liverpool Football Club is not going bust," he told the club's official website. "We have an extremely healthy business with record revenues and we are highly profitable.

We have an extremely healthy business with record revenues and we are highly profitable
--Christian Purslow, Liverpool Managing Director
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"The issue today is that too much of that profit is being used to service loans put into place when the club was bought. We are dealing with that issue. When we sell the business that debt will be reduced or go away which will make us the most profitable club in the Premier League.

"To achieve our UEFA license we went through that process and they were very happy with what they saw - so I cannot conceive of a situation where Liverpool Football Club could go into administration."

Purslow also rejected the idea that the owners would be allowed to refinance their debts against club assets, like the stadium, the training ground or the players themselves.

He said: "That would require board approval and the other members of the board have made it clear that's not what we want to see happen."

Purslow insisted there were still a number of potential buyers looking at the club, even though rumored bids by Chinese businessman Kenneth Huang and Syrian businessman Yahya Kirdi failed to materialize.

He added: "The process remains underway and there are a small number of potentially interested parties working seriously and privately -- doing what is called due diligence -- looking at the business in detail from a financial and legal standpoint.

"My hope is that one of those parties steps forward with a proposal to buy the club which is attractive to the Board and which would be good for the club."