According to UK newspaper The Guardian, the bank has placed the club’s loans into its toxic assets division.
Under the terms of American owners Tom Hicks and George Gillett’s latest refinancing agreement with RBS, the bank could force the insolvency of Liverpool in the event of default, putting the club in administration.
However, it is unlikely RBS would go down this route as it has no plans to hold Liverpool as a subsidiary and will try to maximise debt recoveries by selling the club at a knockdown price.
The £800 million price tag put on Liverpool by Hicks and Gillett is understood to have been the main obstacle to the club’s sale negotiations over the past month.
