From The Independent:
Manchester United's transfer spending, contract negotiations, player sales, ticket pricing and commercial deals will all fall into the hands of the hedge funds who are bankrolling Malcolm Glazer's takeover if the American businessman fails to meet certain repayment deadlines.
The hedge funds, which specialise in high-risk lending at high rates of interest, will also, under certain circumstances, have a right to seats on United's board if Glazer fails to meet specific profit targets in his first two years in control.
The consequences are detailed in documents relating to the takeover which are now available for scrutiny at the London offices of Glazer's lawyers, Allen & Overy. Experts who have analysed the paperwork for the Shareholders United fans group said last night that Glazer is operating under an "extraordinary and potentially crippling" repayment schedule that leaves him "no room for manoeuvre".
Aside from bank loans of £265m which alone could cost £570m to repay, Glazer is borrowing £109m for working capital, and £275m in "preferred securities" from three hedge funds. Glazer needs to refinance the securities as quickly as possible to make his debts sustainable. But the documents reveal he faces a staggering £167m redemption penalty if he redeems them before 2 May next year, or £55m in effective interest for the year (which rises exponentially) if he does not. If he fails to pay back the securities, in full, within 63 months, the hedge funds will effectively take control of United.