The High Court has granted the board of Liverpool Football Club an anti-suit injunction against the club’s owners.
The order is a victory for Erskine Chambers’ Richard Snowden QC and One Essex Court’s Lord Grabiner QC, who went to the High Court for RBS and the club’s board respectively in a bid to stop a temporary restraining order (TRO) issued by a Texas court overnight on Wednesday (14 October 2010).
The TRO application was granted to the club’s owners Tom Hicks and George Gillett in Texas in a move that could have prevented the sale of the club (13 October 2010).
Liverpool FC risks being put into administration if it defaults on a £237m loan provided by RBS. The deadline for repayment is today (15 October).
During the last week Hicks and Gillett have been resisting a sale to US-based New England Sports Ventures (NESV) through the High Court, arguing that other bidders had put in higher offers that would be better for the club’s financials.
The club’s board, however, is keen to avoid administration and wants to push a sale through.
The injunction issued by Mr Justice Floyd yesterday gives Gillett and Hicks until 4pm today to comply. However, with the Texas court adjourning proceedings until 1pm today the future of the club is yet to be decided.