Letham gives Rangers extra time to repay £1million loan

[ian1964 10,724]

RANGERS fan George Letham has reluctantly agreed to give the Ibrox board a short extension to repay the £1million loan that was due last week.

 

 

 

The wealthy supporter stepped in to lend his boyhood heroes the seven-figure sum earlier this year as chief executive Graham Wallace was forced to seek a quick fix to the Gers' cash crisis.

 

As part of the agreement, Rangers were scheduled to give Letham his money back by the close of business on Friday, but after the Light Blues announced plans to raise around £4m in a share option last week, the prospect of him receiving his money appeared bleak.

 

SportTimes understands Letham held full and frank discussions with Wallace on Saturday and agreed to a short extension to allow the under-fire board more time to come up with the money.

 

With cash reserves running low at Ibrox, a refusal from Letham would have left Wallace and his fellow-directors with a huge financial headache.

 

But after stepping up to the plate to help Rangers in their hour of need in March, the lifelong Light Blue was not prepared to pull the rug from under the board's feet at this time.

 

The full extent of the Gers' financial plight was laid bare in a statement to the Stock Exchange last week when the board admitted that the future of Rangers International Football Club plc would be 'uncertain' if all 19 million of the new shares were not snapped up by existing investors in the coming weeks.

 

Any funds that are raised will be used to pay off Letham's £1m loan and the £500,000 deal that was agreed with Sandy Easdale, both of which were secured against the Albion car park and Edmiston House.

 

The Ibrox board originally clinched a deal with major shareholders Laxey Partners but that move came under huge criticism from supporters after it was revealed the Hedge Fund would collect £150,000 in interest payments for the short-term loan.

 

Rangers had a cash balance of just £4.2m at June 30 this year, but with £2.7m of that unavailable as use for working capital, the board have been forced to issue more shares in a bid to repay Letham and Easdale and provide much-needed money for the coming weeks.

 

With the financial picture once again bleak at Ibrox, boss Ally McCoist was unable to make any last-minute moves to bolster his squad before the transfer window closed last night.

 

The Gers' two most valuable assets, Lee Wallace and Lewis Macleod, remain at the club, but seven players have gone out on loan - Barrie McKay (Raith Rovers), Calum Gallacher (Cowdenbeath), Danny Stoney (Stranraer), Luca Gasparotto (Airdrie), Robbie Crawford (Morton), Tom Walsh (Stenhousemuir) and Craig Halkett (Clyde).

 

http://www.eveningtimes.co.uk/rangers/letham-gives-rangers-extra-time-to-repay-1million-loan-178673n.25212709

[Super Cooper 0]

Why were the loans not repayed from season ticket money which was originally agreed?

[der Berliner 3,749]

So he did not want shares in the company instead. It would also be good, just for the sake of the debate, to tell people that he "only" wanted a third of Laxey's amount in interest - at least according to information back then.

[Frankie 8,570]

Not a huge surprise.

 

Guy couldn't win with this as he'd be criticised no matter what he did. He certainly has my thanks for taking on this extra risk.

[Frankie 8,570]

So he did not want shares in the company instead. It would also be good, just for the sake of the debate, to tell people that he "only" wanted a third of Laxey's amount in interest - at least according to information back then.

 

I don't think it would be fair if we allowed an individual fan to give an interest free loan when the risk is so high.

 

Just for the sake of debate, Mr Letham has loaned the club a huge amount of money and should have our thanks for being so generous while others are less so.

[Frankie 8,570]

Why were the loans not repayed from season ticket money which was originally agreed?

 

I can only assume Mr Letham has been in close contact with the club and realises the difficulty it's in. Given we have fans criticising him for even loaning the cash, can we imagine what they'd say if he forced the club into an insolvency event (or even to sell players) just to recoup the principal?

[the gunslinger 3,366]

Why were the loans not repayed from season ticket money which was originally agreed?

 

There was never enough to do so. We had to sell Telfer to pay the wages.

[the gunslinger 3,366]

So he did not want shares in the company instead. It would also be good, just for the sake of the debate, to tell people that he "only" wanted a third of Laxey's amount in interest - at least according to information back then.

 

A third in shares. Of the interest part that is.

[Super Cooper 0]

There was never enough to do so. We had to sell Telfer to pay the wages.

 

Can't see that myself mate, Telfers fee would only cover costs at the club for a day at the most, probably a few hours. £60k was it? Pennies in our world of spending.

[Super Cooper 0]

I can only assume Mr Letham has been in close contact with the club and realises the difficulty it's in. Given we have fans criticising him for even loaning the cash, can we imagine what they'd say if he forced the club into an insolvency event (or even to sell players) just to recoup the principal?

 

I know a few who would have supported him in such actions. But I do appreciate and understand what you are saying Frankie.