Hedge Fund Sues Former Liverpool Co-Owner George Gillett Jr. for Debts Over $117 Million

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November 19, 2010

Former Liverpool co-owner George Gillett Jr. is being sued by a U.S. hedge fund for debts he racked up investing in the English Premier League soccer club.

According to The Associated Press, the lawsuit states that Gillett, through one of his companies, borrowed $70 million from Mill Financial in 2008 and agreed to pay a 19-percent-a-year interest. In order to extend the repayment date, Gillett agreed to pay millions of dollars in fees.

Mill Financial?s lawsuit, filed Thursday, explains that Gillett and his companies have failed "to honor their obligations."

Gillett has only repaid around $430,000 to the Springfield, Va.- based company. The lawsuit seeks $117.9 million in debt along with legal fees.

In October, Red Sox owners John Henry and Tom Werner bought Liverpool through their New England Sports Ventures. The Royal Bank of Scotland made the $476 million deal happen after Gillett and co-owner Tom Hicks couldn?t repay their debt.

At the time, both Gillett and Hicks referred to the club?s sale as an "extraordinary swindle." The former co-owners believed the deal completely undervalued the team and that the bank dismissed their efforts to repay debts and stop the sale.

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