QPR Report Twitter Feed

Thursday, July 26, 2007

QPR's Finances, Lee Cook Sale & ABC Loan

Daily Mail - July 26 - Rangers saved by £2.5m fee for Cook
Fulham saved west London rivals Queens Park Rangers from administration when they paid £2.5million for winger Lee Cook, it has emerged.
The deal allows the debt-ridden club to repay a £1.3m loan from Panama-based money-lenders, the ABC Corporation, which is secured against Loftus Road.
Rangers already owe ABC £10m from the deal which took the club out of administration in 2002 but needed the extra cash to pay an outstanding tax bill and stave off a winding-up order from HM Revenue and Customs.
The money from last week's Cook transfer will allow the club to pay off the short-term loan and give chairman Gianni Paladini more time to find new investors.
Rangers director Nick De Marco said: "QPR were faced with a winding-up order in July. If the club had not found a substantial sum of money to pay off before 4 July, the club would have been put in administration.
"Faced with that risk and the need to pay various other debts and on-going costs, the club had no alternative than to seek a short-term bridging loan.
"Nobody was prepared to lend the club the sums required in time, apart from ABC. It's not a great agreement for QPR but it was a choice between that and administration. QPR are able to repay the loan now, in part from the proceeds of sale of Lee Cook."
Rangers are understood to be close to refinancing the £10m ABC loan with another money lender.
To aid this process, QPR directors have negotiated an early-repayment clause with ABC, which had not originally been expecting its money back until 2012.
Under the deal, QPR have until 31 July next year to pay off ABC with cash from another lender or the company will have the right to take over ownership of Loftus Road.
The possibility of losing the ground has raised alarm among fans but QPR sources are "extremely confident" the 2008 option will never be exercised.
The club are in advanced negotiations with a new financial backer and hope to make an announcement in the next few weeks.
Meanwhile, QPR are lining up a £350,000 move for Charlton midfielder Simon Walton.
Rangers boss John Gregory has earmarked the former Leeds teenager as a partner for Adam Bolder in the centre of his side's midfield. Mail

Blog Archive