Liverpool close to bank debt deal

Liverpool Football Club - which owes two banks £350m - is close to renegotiating its debt with the Royal Bank of Scotland, the BBC has learnt.

RBS has told club owners Tom Hicks and George Gillett the debt, due to be repaid in July, will be refinanced.

BBC business editor Robert Peston says RBS will insist on significant payments in the subsequent six months.

It comes as Portsmouth's defender Glen Johnson has agreed to join Liverpool in a £17.5m move.

Lending agreement

Our business editor says the good news for Liverpool FC supporters is that the club is not about to go bust.

"I understand that Royal Bank of Scotland has told its two billionaire owners, George Gillett and Tom Hicks, that their £350m debt - which falls due for repayment on 24 July and is owed to Royal Bank and Wachovia of the US - will be refinanced.

"A new lending agreement will be put on place."

A spokesman for the US pair would not comment on the development.

The other bank owed money, Wachovia, has yet to make any announcement.