Mike Ashley calls for EGM

[the gunslinger 3,366]

http://www.heraldscotland.com/news/h...-plan.25611341

 

RANGERS are believed to have just days to accept a £16 million rescue package offered by former director Dave King.

 

The deadline came as it emerged the controversial businessman has put up £8m of his own money in a bid to take control of the Championship club.

 

It is understood that, during talks at Ibrox on Tuesday, Mr King set out proposals to invest heavily in Rangers with half of the cash coming from his own pocket and the remainder from other investors, including wealthy fan and shareholder George Letham.

 

Mr King, a South Africa-based businessman, is believed to have committed to remaining in the UK for a week as the board decides on its next move, with a large influx of cash needed ahead of an annual meeting that must be held before the end of the year.

 

There are concerns that Rangers do not have the money to see out the season, while it has also been suggested they may struggle to pay staff wages this month.

 

Sources close to Rangers say it is highly unlikely the club's auditor, Deloitte, would sign off its accounts ahead of the annual meeting, as they would have to be strong enough to show the club is in a healthy enough financial position to trade for another year, whereas it appears to need a significant cash injection.

 

In a further development, it is understood the Rangers board is also in contact with shareholder Mike Ashley, owner of Sports Direct and Newcastle United, who could offer his own rescue package as the power struggle over the club's future enters a crucial phase.

 

Mr Ashley, who owns almost 10 per cent of the club, is understood to oppose Mr King's comeback and is attempting to oust chief executive Graham Wallace and director Philip Nash.

 

The only other realistic option to raise cash is a fresh share issue. However, after a similar move last month raised little more than £3m, significantly less than had been targeted, analysts believe the club is more likely to turn to Mr King or Mr Ashley.

 

Rangers declined to comment.

 

hard to see how ashley can buy more shares so all he can do is a loan.

 

the board have a duty to accept the deal that is best for the company but they have paid scant regard to that notion over the last two years.

[buster. 5,264]

hard to see how ashley can buy more shares so all he can do is a loan.

 

the board have a duty to accept the deal that is best for the company but they have paid scant regard to that notion over the last two years.

 

Slowly but surely, matters are coming to a head with various cut-off dates starting to take shape, even if exact dates are yet unknown.

 

DK deadline (apparent)

EGM

Accounts (Deloittes signing off going concern)

AGM

Cashflow

[simplythebest 0]

if the 16 million is paid in as a loan initially it will only need board approval. if it is to be repaid then it will indeed end up needing shareholder approval for that.

 

all depends what the structure is.

 

tbh shareholders would need to have a long think about rejecting it no one else is likely to buy shares at 20p a pop. not in the required numbers anyway.

Sorry, thought we were talking about the proposal to remove Wallace and Nash there

[der Berliner 3,820]

The only other realistic option to raise cash is a fresh share issue. However, after a similar move last month raised little more than 3m, significantly less than had been targeted, analysts believe the club is more likely to turn to Mr King or Mr Ashley.

 

Unless I am mistaken, they were looking for 4m, i.e. they achieve what, 800k less than that? To some it may be "significant", in our scheme of things we speak about a month or two.

 

I'm not sure whether King et al would accept a loan deal here.

[JTP 0]

hard to see how ashley can buy more shares so all he can do is a loan.

 

Aye a Wonga loan.

[the gunslinger 3,366]

Unless I am mistaken, they were looking for 4m, i.e. they achieve what, 800k less than that? To some it may be "significant", in our scheme of things we speak about a month or two.

 

I'm not sure whether King et al would accept a loan deal here.

 

 

if you can't sell 4 million of shares at 20p each how can you possibly hope to sell the required 8 million (guestimate) to see out the season.

 

more importantly really we need to recapture the missing 15-20k fans. thats where the real future lies.

[buster. 5,264]

Aye a Wonga loan.

 

Ashely eventualy went Wonga !!

 

 

 

[craig 5,199]

Keith Jackson on twitter...

 

For all those asking about Dave King's chances of success. I expect he needs 100% shareholder support. So 'slim' is the answer.

 

This sounds like nonsense. I have never heard of any loan, or indeed capital raising venture, needing a unanimous decision from shareholders. A super-majority is more likely, which is 75% shareholder approval.

[craig 5,199]

Unless I am mistaken, they were looking for 4m, i.e. they achieve what, 800k less than that? To some it may be "significant", in our scheme of things we speak about a month or two.

 

I'm not sure whether King et al would accept a loan deal here.

 

25% less than anticipated is significant in anyone's language.

[the gunslinger 3,366]

This sounds like nonsense. I have never heard of any loan, or indeed capital raising venture, needing a unanimous decision from shareholders. A super-majority is more likely, which is 75% shareholder approval.

 

apparently he meant 100% of the shareholders outside the **** block. they have been careful to maintain 26% for a reason.