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THE Liverpool FC ownership war took yet another dramatic twist today with reports hedge fund Mill Financial has effectively taken over the club.

It is being claimed the US-based investment company acquired all of Tom Hicks' shares.

It already owned George Gillett’s shares after the American defaulted on a loan.

The latest shocking development came as the sale was briefly heard in the High Court again this morning, at 10.30am. It is due back before Mr Justice Floyd at 2pm.

And according to reports if they repay all outstanding loans to Royal Band of Scotland before the set deadline they will by default become the new owners of LFC – nudging out Boston-based New England Sports Ventures.

But this morning RBS was understood to have no knowledge of the reported Mill Financial deal but would be expected to be informed of such a takeover as the principal creditor.

The ECHO believes today’s dramatic move would not see Hicks and Gillett return to ascendancy in the battle for the Reds.

Instead it is believed Mill Financial, owned by Springfield Financial who have links with the Washington Redskins American Football team, may be acting on behalf of another, as yet unnamed and unknown group, now in a position to move in at the 11th hour and take over the club.

Inevitably will lead to speculation Chinese businessman Kenny Huang could be behind today's dramatic developments, though that is by no means clear.

Critical meetings to discuss today's development are now being held in London involving Liverpool's English directors – chairman Martin Broughton, Managing Director Christian Purslow and Commercial Director Ian Ayre.

No one from the club was prepared to comment on the so far unconfirmed reports.

The latest development comes after an astonishing day of highs and lows yesterday.

The English board’s resounding High Court victory was followed a legal blow by the American co-owners.

They obtained a restraining order in Texas last night which was due to be challenged by LFC in the next 24 hours.

Lawyers for the Reds were locked in complex discussions until 3am today deciding how to deal with injunction.

Liverpool FC had appeared confident they would overcome a lawsuit seeking $1.6b damages from the English directors at Anfield – along with lenders Royal Bank of Scotland and successful Liverpool bidders New England Sports Ventures (NESV) – claiming they were undervaluing the price of the club and disregarding other, allegedly higher, offers.

This morning solicitors for the Reds were hoping to have the matter listed in the High Court in London "as a matter of urgency" to obtain an injunction overturning the lawsuit.

And the ECHO understands to completely veto the move they must ask for a similar hearing at a court in America.

Once that happens Liverpool can be sold to NESV for £300m.

The ECHO can reveal how NESV were ready to complete their outright purchase of Liverpool today.

But due to last night’s development Red Sox chairman Tom Werner put an overnight flight on London on hold.

He was due to join his right-hand man John Henry at the London offices of Slaughter and May.

Henry, 61, was pictured walking into the solicitors’ HQ yesterday evening. He gave a thumbs up when asked if he was confident of buying the Reds.

Mirroring the board meeting nine days ago Hicks and Gillett participated via telephone quickly informing the directors of their lawsuit before a vote of 3/2 was taken to approve the NESV sale.

English legal experts today doubted whether the Texan restraining order – which courts here would call an injunction – would be valid and binding.

But they said RBS and NESV cannot ignore it because of their large interests in the US.

Paul Lunt, head of corporate litigation at law firm Brabners Chaffe Street, told the ECHO: "In so far as it’s against RBS, they might freeze assets in Texas – it’s a problem they will have to deal with, both here and in the US.

"I’m sure it’s a headache they could do without. But it’s something I’m sure they will deal with."

Lawrence McDonald, a chancery barrister in Liverpool, said: "The court in Texas has no jurisdiction over an English company so no order that they make can be directly binding.

"I think the parties will be free to ignore it.

"But in practice because NESV are American and RBS has significant American assets, from a practical point of view, they’re not going to ignore an order of an American court.

"NESV and RBS are going to have to try as a matter of urgency to get this order removed."

Claims from Hicks and Gillett about recent and much-improved bids for Liverpool, including one from FBR Capital Markets for up to £400m,were rubbished by those close to the process in the UK.It is understood little credence is being given to the two offers alluded to by the co-owners in their statement which have emerged at the eleventh hour after a seven-month sale process conducted by chairman Broughton.

The Royal Bank of Scotland this morning was unable to comment on whether they might now call in their £237m debt from Hicks and Gillett tomorrow, putting the club in administration as a tactic to force the Americans out.

The club was agreed to be sold for £300m last night only for the threatened lawsuit to put the deal on hold.The co-owners petition talks of an "epic swindle" alleging the club was being sold "hundreds of millions of dollars below its true market value".

Sources close to the Reds deal described the development as a "pure delaying tactic designed to cause confusion and chaos in a process coming to a sensible conclusion".

The ECHO understands Liverpool were expecting a drastic move from the co-owners and while they remain respectful of American court judgements they are confident it does not have jurisdiction over UK law, such as was delivered in comprehensive fashion by London’s High Court yesterday where a judge ruled against the co-owners.

At Anfield they view the restraining order as a desperate attempt to filibuster the NESV deal until after November 1 when it is thought the legal exclusivity between LFC and the Boston conglomerate runs out.

Today NESV remained still fully committed to the deal to buy Liverpool.

An LFC statement released at 11pm last night said: "The boards of directors of Kop Football and Kop Holdings met tonight and resolved to complete the sale of Liverpool FC to New England Sports Ventures.

"Regrettably Thomas Hicks and George Gillett have tonight obtained a Temporary Restraining Order from a Texas District Court against the independent directors, Royal Bank of Scotland PLC and NESV to prevent the transaction being completed.

"The independent directors consider the restraining order to be unwarranted and damaging and will move as swiftly as possible to seek to have it removed."

The lawsuit, signed by Judge Jim Jordan of the 160th District Court in Dallas, claimed the Liverpool UK directors and the bank "conspired to devise and execute a scheme to sell LFC to NESV at a price they know to be hundreds of millions of dollars below true market value."

The statement continued: "The director defendants were acting merely as pawns of RBS, wholly abdicating the fiduciary responsibilities that they owed in the sale.

"RBS has been complicit in this scheme with the director defendants. For example, in letters from RBS to potential investors obtained just within the past few days, RBS has informed investors that it will approve of a deal only if there is ‘no economic return to equity’ for Messrs. Hicks and Gillett."

Prior to today’s sudden move, plans were being made, the ECHO understands, to have unveiled the NESV supremo at Anfield before this Sunday’s Merseyside derby.

The Boston consortium have had a dialogue with their own lawyers and remain undeterred by recent events.