Kieran Maguire issues ‘significant’ West Brom takeover claim as paperwork submitted
West Brom would need to settle their loan with MSD Holdings before Guochuan Lai is able to sell the club.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the controversial debt taken on by the Baggies.
A source told Football Insider in December that the £20million loan Albion have acquired from private lender MSD Holdings comes with an interest rate of 10 per cent, rising to 12 per cent if they fail to meet certain conditions.
A new document submitted to Companies House earlier this month shows that the four-year loan is secured against West Brom’s key assets, including The Hawthorns stadium.
Lai has also recently missed the deadline for repayment of a £5m loan which he took from the club purse in order to run his other business interests.
Maguire explains that any hopes West Brom supporters might harbour of the Chinese billionaire selling the club would first depend on the settlement of the MSD loan.
“The MSD documents lodged at Companies House are concerning,” he told Football Insider’s Adam Williams.
“They have gone from an independent football club, one which has historically has been run well, to one which now has a significant mortgage over its core assets.
“The loan is secured against its property and also its intellectual properties. Therefore, there is less wiggle room going forward.
“It means, if the club were to be sold, the MSD loan would have to be repaid first.
“This does mean that any potential sale proceeds would have to be netted off against what is owed to these signficant institutions.“
In other news, Bolton, Barnsley and Peterborough in race to sign West Brom forward Jovan Malcolm.