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Manchester United reveal refinancing plans

Updated: Thursday, 14 Jun 2007 16:17

Malcolm Glazer's Manchester United have announced refinancing plans
Malcolm Glazer's Manchester United have announced refinancing plans

Manchester United manager Alex Ferguson can enter the transfer market with increased optimism after the club confirmed a refinancing package which will slash their annual interest payments by almost 30%.

A deal is due to be concluded at some point next month which will see charges on loans fall from a massive £90million per year to £62million.

Although United's overall debt has increased to £660million under the restructuring plan, the club have been able to cut the amount borrowed at huge cost from hedge funds.

In addition, the remaining £135million owed in the form of higher risk payment-in-kind notes no longer convert into equity, releasing the club from the possibility of being run by bankers.

'This move represents good housekeeping,' said a club spokesman.

'It ensures that Alex Ferguson will be provided with sufficient funds to compete in the transfer market.'

Such a move had been widely anticipated since Malcolm Glazer completed his controversial £790million buy-out just over 12 months ago.

At £660million, United now have the highest debt ever seen at a Premiership football club and many will continue to argue such a burden can only be detrimental to the club's chances of enjoying the kind of sustained success they had in the 1990s.