Glazer's buy back 20% of Man Utd debt
Thu 16th Sep 2010 | Money & Finance
Manchester United’s owners have, according to reports, bought back around 20 per cent of the high-interest loan owed by the company they use to control the Premier League club.
According to news agency Bloomberg, the US-based Glazer family bought part of the payment-in-kind (PIK) loan issued by the company after the face value price fell during the global financial crisis in 2008 and may have paid as little as £12.6 million for the stake.
The PIK loan has increased to more than £200 million since 2006.
It is expected to be revealed next month, when United is scheduled to file its accounts for the financial year, whether they used funds from the club to pay down other debts.
The Glazers raised £526 million in January to re-finance United's debt, which now stands at more than £800 million.
Conditions in a previous loan determined that the owners had to pay off senior debt first before being able to pay off their other borrowings.
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