Liverpool co-owners aren't panicking over their massive debts.

Accountants KPMG expressed concern over the level of debt being incurred by Kop Football Holdings, Liverpool's parent company, after it posted losses of £42.6million in the year ending July 2008.

Most of that was a result of £36million of interest payments on a loan of £350million - which has to be renegotiated by July 24.

However, suggestions Liverpool are facing financial meltdown have been dismissed by sources close to the American duo as "totally wide of the mark".

The club itself posted profits of £10.2million but that was swallowed up by the huge interest payments of the parent company.

"The owners seem remarkably relaxed about it, which can only be a good sign," an insider told PA Sport.

"There is no threat to the club. Liverpool's profitability and profits are up.

"There are other clubs who are considerably more in debt than Liverpool are."