The Royal Bank of Scotland has obtained an injunction preventing Liverpool owners Tom Hicks and George Gillett from sacking
independent chairman Martin Broughton or any other board members ahead of Tuesday`s court case.
RBS is the club's main creditor, having lent Americans Hicks and Gillett the money to buy the club in March 2007, and is claiming in the High Court that the pair breached their agreement by trying to replace managing director Christian Purslow and commercial director Ian Ayres on the board last week.
The outcome of the case should decide Liverpool's immediate future, with the club's board having agreed to a £300million offer from New England Sports Venture against the wishes of Hicks and Gillett.
RBS said in a statement: "RBS in its capacity as lender to the Kop group of companies received the benefit of various contractual undertakings from Mr Hicks and Mr Gillett in relation to the corporate governance arrangements that Mr Hicks and Mr Gillett agreed would apply to the Kop group of companies with effect from April 2010.
"Those undertakings provided for the appointment of Mr Broughton as chairman of the board and the appointment of the chief executive and commercial director of LFC to the Kop boards. As is well known Mr Hicks and Mr Gillett purported to make changes to those corporate governance arrangements on 4 October. This was in breach of those contractual undertakings.
"In light of that purported breach of contract RBS sought and obtained on Friday 8 October 2010 an interim injunction against Mr Hicks and Mr Gillett until a further hearing scheduled [for Tuesday]. Among other things, that interim injunction prevents Mr Hicks or Mr Gillett taking any steps to remove or replace Mr Broughton from his position as chairman of the board of the Kop companies or from taking any other steps to appoint or remove any directors from the board of the Kop companies."
Hicks and Gillett have brought the proceedings in order to block the sale of the club to New England Sports Ventures, the company which owns American baseball giants the Boston Red Sox.
Hicks and Gillett want to block the deal because the £300 million on offer from NESV would cover the £237m debts owed to RBS - which are due to be paid in full by Friday October 15 - but little else, saddling the duo with estimated losses of around £144m.
If Mr Justice Floyd rules in favour of RBS then the bank is unlikely to plunge the club into administration - which would incur a nine-point penalty from the Premier League - and ease through the sale of the club.
Martin Broughton was hired earlier this year as independent chairman and tasked with finding a buyer for the club Hicks and Gillett bought in 2007. However, when the three-man English contingent of the club's board voted to approve the sale to NESV, the two owners tried to fire managing director Christian Purslow and commercial director Ian Ayre and bring in their own people to give them vetoing power.
The case being heard in the High Court is to determine whether Hicks and Gillett were within their rights to do so or not.
There are expected to be plenty of protestors outside the hearing, eager to voice their displeasure at Hicks and Gillett's controversial three-year tenure at the club.
James McKenna, spokesman for supporters' group Spirit of Shankly, said: "I think given enough notice it’s potentially a large turnout. I think you’re talking at least hundreds of people.
“I’m sure supporters will be there to make their feelings known. As well as people coming from Liverpool there are plenty of people in London who are literally waiting for the call.”
PA Sport
