Laudbertz 0 Posted March 3, 2015 Share Posted March 3, 2015 I am not altogether sure what this means, but I saw it so thought id post it. The 'willingness of SD to release funds' is the part that grabbed me. Something to be worried about? 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted March 3, 2015 Share Posted March 3, 2015 Looks to me as if Llambias & Leach have taken the decision to draw down on the 2nd tranche - in other words, they are initiating the process of taking the next chunk of cash from Ashley, which in turn grants security does it not ? That said, it could just be a "back-fill" - the Club don't have the cash to pay bills at the end of the month so they are initiating the due diligence process in the event that we need the funds. I am astounded at them taking this action knowing full well that King is coming in and has cash to invest. There is absolutely NO WAY that this course of action, unless done for timing purposes, could be in the best interests of the Club. Yet another glaring example of conflict of interest. 0 Quote Link to post Share on other sites More sharing options...
Laudbertz 0 Posted March 3, 2015 Author Share Posted March 3, 2015 Thanks Craig. I was also baffled by it mentioning the 3rd week of March, when, presumably, King will have taken over. 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted March 3, 2015 Share Posted March 3, 2015 Here's the original RNS released on 27 January....... 27 January 2015 Rangers International Football Club plc ("Rangers" or the "Company") £10m Credit Facility and associated transfer of 26% of Rangers Retail Limited The Board of Rangers announces that Rangers Football Club Limited ("the Club") has entered in to agreements with SportsDirect.com Retail Limited and associated companies ("SD"), to provide a long term on-going credit facility of up to £10m (the "Facility"). The Company's financial condition has been perilous for a number of months exacerbated by lower than expected match attendances. The Directors have implemented a cost cutting program with which they have made significant progress. There is however an immediate need for a substantial injection of capital, and the Directors have considered a number of options. The terms negotiated with SD (which are reversible in respect of the Facility) represent the optimum combination of quantum and duration of funding, allowing the Company time to arrange permanent capital which can be used for strengthening the playing squad. The Facility is structured in two separate interest free tranches. GBP 5million will be available immediately for working capital purposes and for the repayment of the credit facilities with MASH Holdings Limited which was entered into on 27 October 2014. All rights and security associated with the MASH facility will be cancelled. The Club will transfer 26% of the share capital in Rangers Retail Limited ("RRL") to SD for the duration of the Facility (the "Transfer"), which will be transferred back, at no cost, upon repayment of all outstanding sums owed by Rangers and its subsidiaries to SD. There is no specified repayment period for the first tranche of the Facility. The Facility is to be secured by (1) a floating charge over the Club's assets and (2) fixed charges over Murray Park, Edmiston House, Albion Car Park, and the Club's registered trademarks. None of the security that is being given to SD covers Ibrox Stadium, which is specifically excluded and remains in the full ownership of the Club, free from any security. SD will also have the right to nominate two directors to the board of Rangers for the duration of the Facility, any such nomination will be subject to regulatory consent pursuant to the AIM Rules and other regulatory bodies. If the entire sum drawn down is repaid, the Facility will be deemed to be terminated, all security will be released, the 26% of RRL will revert to the Company and all rights of SD to nominate Directors to the Board of the Company will cease. The second tranche of GBP5 million, which repayable 5 years after drawdown, will be used, if required, for working capital purposes and is subject to due diligence by SD prior to drawn down. The Company has also agreed that from the 2017/8 season, for the duration of the Facility, any future shirt sponsorship proceeds will be for the benefit of RRL. RRL will declare a dividend of a total of GBP 1,610,000 prior to the Transfer. The Club will use the proceeds of its share of this dividend, inter alia, to repay sums owing to SD in respect of the cessation of onerous leases on unprofitable stores entered into by a previous Rangers management team. RRL is a joint venture between the Club and SD whose business is selling merchandise both on-line and in stores. In the period ending 27 April 2014, RRL made a profit before tax of GBP 1,172,893. SD is a Related Party under the AIM Rules and accordingly the Facility is a Related Party Transaction pursuant to AIM Rule 13. The Independent Directors, consider, having consulted with WH Ireland its nominated adviser, that the terms of the Facility are fair and reasonable insofar as shareholders of the Company are concerned. The Directors would like to thank all the Rangers Stakeholders who showed an interest in helping the Company. Commenting on the Facility, David Somers said: " The Board has sought for some time to establish a long term funding solution for the Company in order to create a platform of stability to build for the future. This Facility begins this process and we very much hope that it will be augmented with further permanent capital in due course. In addition, the executive team have made strides in addressing the cost base of the Company in order to improve our financial condition and working capital profile. We very much hope that we can now move away from having to seek short term funding solutions and can focus our efforts towards investing in the first team playing squad, a return to profitability and to re-establishing Rangers in the top league in Scottish Football and in due course, to European competition. The Board now calls upon all shareholders to rally together to achieve this goal." http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12227853.html 0 Quote Link to post Share on other sites More sharing options...
andy steel 0 Posted March 3, 2015 Share Posted March 3, 2015 What time do the courts shut at? 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted March 3, 2015 Share Posted March 3, 2015 We should have expected another power move like this from Ashley. It now looks as though he's instructed Llambias & Leach to proceed with this and hang tight until the EGM on Friday to give them enough time to complete this drawdown. If it goes ahead then that's the Club saddled with a £10m debt to SD/Ashley. 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted March 3, 2015 Share Posted March 3, 2015 We are going to need to tear this lot out physically. 0 Quote Link to post Share on other sites More sharing options...
pete 2,499 Posted March 3, 2015 Share Posted March 3, 2015 Cost cutting. 5 mill per month. Aye right. Cunts! 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted March 3, 2015 Share Posted March 3, 2015 We should have expected another power move like this from Ashley. It now looks as though he's instructed Llambias & Leach to proceed with this and hang tight until the EGM on Friday to give them enough time to complete this drawdown. If it goes ahead then that's the Club saddled with a £10m debt to SD/Ashley. Yes, but this drawdown cash will still be sitting in the bank - so in terms of cashflow it isn't a big deal. It is more of an issue in terms of the security and getting rid of that. 0 Quote Link to post Share on other sites More sharing options...
Laudbertz 0 Posted March 3, 2015 Author Share Posted March 3, 2015 We should have expected another power move like this from Ashley. It now looks as though he's instructed Llambias & Leach to proceed with this and hang tight until the EGM on Friday to give them enough time to complete this drawdown. If it goes ahead then that's the Club saddled with a £10m debt to SD/Ashley. So our only hope is Capita announcing the results early when voting closes tomorrow? 0 Quote Link to post Share on other sites More sharing options...
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