Liverpool owners defeated in High Court

Liverpool’s American owners suffered a further setback yesterday when the High Court in London ruled that their attempt to use a US court to block the sale of the club was invalid.

Judge Christopher Floyd strongly condemned the actions of Tom Hicks and George Gillett in obtaining an injunction in a court in Texas on Wednesday, saying their conduct had been “unconscionable”.

The ruling increases the likelihood that the 18-time English champions will be sold to New England Sports Ventures (NSEV), owners of baseball’s Boston Red Sox.

The judge in London granted anti-suit injunctions in a bid to nullify decisions taken in the court in Dallas.

He stressed he had given a ruling in London on Wednesday that meant the English directors of Liverpool could agree a 300 million pound (480 million dollar) takeover by NESV.

But before Liverpool’s board could make any decision, Hicks and Gillett secured a temporary restraining order from a court in Dallas, forcing the fresh court hearing in London yesterday.

David Chivers, a lawyer for NESV, told the High Court that his clients already considered themselves the new owners of Liverpool.

He asked the judge for a speedy serving of his orders on Hicks and Gillett so the deal with NESV can be completed and money transferred from the United States to finalise the deal.

Time is pressing because today is the deadline for the repayment of a 200-million-pound loan made to Hicks and Gillett by the Royal Bank of Scotland.

Chivers said that if the deal was not completed today, then Hicks and Gillett would have succeeded in stopping the sale of Liverpool before repayment of the debt became due.

The judge gave Hicks and Gillett until 1500 GMT today to comply with his orders.

Meanwhile, another potential buyer, Singaporean billionaire Peter Lim, withdrew his 320-million-pound offer.

Lim said the board appeared determined to sell to NESV “to the exclusion of all other parties, regardless of the merits of their bids”.

“In these circumstances, I am not able to proceed with my intention to acquire the club,” Lim added in a statement.

The basis of the American owners’ legal moves is their belief that the club is being undersold. They value the club at 600 million pounds and would lose about 140 million pounds if NESV’s deal went ahead.

Lim said that while he was withdrawing his offer, he was monitoring events and was still prepared to make a fresh bid.

“If current events cause the circumstances to change, my interest in acquiring the club remains,” he said.

Hicks and Gillett’s unhappy association with Liverpool has coincided with a slump in the club’s fortunes on the field, while they have failed to deliver on a promised new stadium.

Around 7,000 supporters demonstrated before the club suffered a shock home defeat to Blackpool this month, a humiliation which sent Liverpool into the relegation zone and confirmed their worst start to a season for 57 years.