According to a voluntary free-payment notice, the Glazers' holding company Red Football Joint Venture will settle the high-interest payment-in-kind (PIK) loan next week.
It is expected that the Glazers will use their own money, and not the club's, to settle the debt, which will leave the £526million bond agreed earlier this year as the Red Devils' sole debt.
Joel Glazer, the co-chairman of Red Football, has signed the document which has been sent to the holders of the loan, who are mainly hedge funds.
The document says Red Football will "pre-pay 100% of the outstanding loan on November 22".
The move may help to reassure United fans who have been concerned about the debt burden on the club after chief executive David Gill last month insisted supporters should not be unduly worried by the figures.
Gill said: "I can't speak for any other club, but the United fans should not be concerned.
"We have a long-term financing structure in place, excellent revenues that are growing, we are controlling our costs - total wages are 46% of turnover - and we can afford the interest on our long-term finance.
"In our opinion if something changed in the ownership this club will survive and continue - it is covering the financing cost more than adequately.
"We still have cash to invest in players and to give good contracts to players and we are comfortable with the business model."
Barclays Prem Winner 10/11 Win Outright: Man Utd 7/2
View the original article here
No comments:
Post a Comment