Banker running Rangers threatens administration

[Gazza_8 233]

From the Evening Times. It mirrors TannochsideBears thread.

 

RANGERS' banker has threatened to put the football club into administration in a dramatic intervention to tackle its mounting debts of �£30m.

 

Lloyds Banking Group issued the ultimatum to the club's shocked board as the only alternative after it initially rejected a "devastating" business plan based on swingeing cuts.

 

The turmoil at Ibrox in recent weeks has left Rangers under the control of its banker.

 

Lloyds has placed Donald Muir, who recently helped rescue Northern Rock, on the board as its representative and the man who will implement their plans.

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Dave King, the Glasgow-born multi-millionaire and former investor in the club, now based in South Africa, is emerging as the leading contender to buy Rangers.

 

He has opened negotiations already but is having difficulties in striking a deal to take control of the club he has supported since childhood.

 

It is believed the purchase price the bank wants for Rangers is �£30million, equivalent to the club's total debt.

 

Sources close to the club said: "The business plan from the bank will do one thing - strangle the club slowly. A new owner is a must or else Rangers will be in dire straits on and off the pitch.

 

"The board tried to fight it as much as it could, but was told it would be placed into administration. The effects of the business plan will be devastating.

 

"Dave King wants to buy Rangers, and there are others expressing interest, but the bank wants a premium price of �£1 for �£1 in terms of the debt so nothing is imminent in terms of a deal.

 

"Its stance is surprising when, across the country, it is selling off assets at 25p, 30p or 40p to the pound in terms of debt.

 

"But because this is Rangers, it is obviously viewing it differently. Maybe it feels wealthy fans will let their hearts rule their heads, but all the while the club is now entering dangerous grounds."

 

There is also interest from businessmen in west Scotland, who could combine to add their resources alongside to those of Mr King, or make their own moves to buy Rangers from the bank as a consortium.

 

Former chairman Sir David Murray, who remains majority shareholder after standing down on August 26, is no longer involved in making key decisions.

 

Mr Muir was placed on the board of Rangers nine days ago at the bank's insistence and is effectively running the club.

 

He has been put in to oversee an immediate attempt to reduce debts, which would include the sale of star players over the coming months subject to the bank's approval, with no replacements.

 

The bank's plan was put to the Rangers board and shocked its members, including new chairman Alistair Johnston and chief executive Martin Bain, who believe the club has to be kept as attractive as possible to lure a new owner or investor.

 

The board refused to accept the business plan the bank put in front of them because it was so drastic.

 

However, they were told Rangers would be put into administration - which would probably allow the bank to recover its cash - if the plan was not accepted by Friday, October 16. Later that day, Mr Muir was confirmed as a board member.

 

However, it is the lengths to which the bank is prepared to go that will shock the club's supporters.

 

In the aftermath of Saturday's match against Hibs, manager Walter Smith admitted the bank - which is 43% owned by the taxpayer and now controls the Bank of Scotland brand - was effectively in charge.

 

Lloyds Banking Group said: "The bank continues to be very supportive of the club and the board as they manage the business through the more difficult economic conditions currently prevailing."

 

The bank, at that stage, had also refused to support the club's auditors in signing off the accounts for year end 2008/2009. There had been raised eyebrows over the delay in Rangers unveiling their books, and the absence so far of an AGM, which traditionally takes place in late September, early October.

 

It is understood this was because the bank was refusing to sanction the figures unless its business plan for Rangers was accepted. The AGM is now planned for December.

 

The financial restrictions were highlighted by Walter Smith in his after-match press conference. He said: "David Murray has stepped down and they have a representative of the bank on the board so as far as I'm aware that's the situation.

 

"It's obviously not a good situation, it's not a situation that anybody wants the club to be in. It's been up for sale for a while.

 

"It's not the bank's fault, if the bank has to take over in the circumstances they are not going to invest in a football club, are they? "When David Murray stepped away from the club, I felt that was a bad thing for Rangers in the sense that he tried as hard as he could over the 20 years to invest in the club and now we don't have that situation.

 

"The quicker that gets cleared up, the better it will be for Rangers.

 

"The players at the club have been up for sale since January and we haven't bought a player for what will be 18 months in this transfer window."

 

Dire Straits!

[alexscottislegend 2,325]

So the club were actually lying in the 'official' statement when they said we did not have to sell players in the January window? If we are as bad as that then the sooner they go the better.

[Tannochsidebear 2,410]

So the club were actually lying in the 'official' statement when they said we did not have to sell players in the January window? If we are as bad as that then the sooner they go the better.

 

Correct, but no bear is really surprised at the club lying to us now are we?

[ian1964 10,724]

If the club went into administration, will we also get points deducted ?????

[Gazza_8 233]

If the club went into administration, will we also get points deducted ?????

 

Yip, remember Gretna?

[DJBlue72 0]

Absolutly depressing reading guys

 

I reckon we are in deep Shit just now and can only pray someone out there

 

can come in and make this nightmare dissapear.

 

Things are bad on the park but i didnt relise we are so close to the wall

 

What can we as Fans do ???? but stand by helpless as all around us is crumbling.

 

For me the blame lies in one place at the door of Mr David Murray

 

the manager identifies the players he writes the cheques.

 

Were has all the money from the past 3 seasons gone ?

 

Season Books,Strips,Merchandise,Uefa Cup run,Champions League qualifaction,Tv Money,Friendlies,Winning Trophies,.

 

There is money i and Thousands upon thousands of you pump money into Rangers in loads of different ways without question without fail every season

so WTF is going on how did we get in this mess again.

 

I only hope the Dave King rumours are true or God knows what headlines we will wake up to in the Morning.

 

A very concerned Bear.

[Frankie 8,562]

What can we as Fans do ???? but stand by helpless as all around us is crumbling.

 

A very concerned Bear.

 

There are some concerned fans attempting to organise a debate which hopefully every site/fans group can contribute to if interested - including the club in fact. We hope to make some progress on that front asap.

 

[biggordy 0]

I, for one, am confident we will emerge from this in much better shape than we have been for the past few years.

However, it's going to be a stressful few weeks.

Look forward to another "new era" and stand steady.

[Beattie 0]

I was always under the impression that King had no real interest in buying?

[Frankie 8,562]

I guess his circumstances may have changed or that he's one name easily linked by a media short of ideas on who could have the finance and interest in buying our club.