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Sevco confirm MASH deal as Wallace walks away

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Image for Sevco confirm MASH deal as Wallace walks away

Mike Ashley

The board of Sevco have issued a statement to the Alternative Investment Market confirming the £2m loan from MASH (Mickey Ashley) and also the departure of Graham Wallace who used to work for Manchester City.

The deal is interest free over six months and is secured against the iconic Albion Car Park and Edmiston House and allows MASH to appoint two directors onto the board which lost Philip Nash, who used to work for Liverpool and Arsenal, on Friday as well as Wallace.

Last month Sevco announced the repayment of loans to George Letham and Sandy Easdale with the new arrangement effectively replacing those deals- or borrowing from Billy to repay Willie as some would describe it.

Despite extensive speculation that Ashley is conducting a takeover of the club it seems that the Newcastle owner is staying a safe distance from the turmoil and simply safeguarding his investment in the lucrative retail side.

This morning’s statement read: “The Board is pleased to announce that the Company’s subsidiary, The Rangers Football Club Limited (“RFCL”) has entered into a credit facility agreement with MASH Holdings Limited (“MASH”) pursuant to which MASH shall make available the sum of £2 million for drawdown by the Company (the “Facility”). MASH is a shareholder in the Company holding 8.92% of the voting rights in the Company.

“The Facility shall be secured by standard security granted by the Company over Edmiston House and Albion car park. The Facility shall be for a 6 month term and is interest free. The Facility will be used by the Company for general working capital purposes. Under the terms of the Facility MASH has the right to appoint up to 2 directors on the board of directors of RFCL.

“Further to the announcement made on 8 October 2014, the Company has entered into a letter agreement with MASH (the “Withdrawal Letter”) pursuant to which the Company has invited MASH to put forward the names of 2 nominees of its choice for appointment to the Board, such appointments being subject to all necessary regulatory approvals being successfully completed for such persons nominated by MASH.

“In addition, the Company confirms that MASH has agreed the immediate withdrawal, by virtue of the Withdrawal Letter, of the notice served by MASH on the Company on 7 October 2014 requiring the Company to convene a general meeting of the Shareholders of the Company to put resolutions to such Shareholders for the removal of Mr Graham Wallace and Mr Philip Nash as directors of the Company.”

With just £2m made available this week’s October payroll should be safely met but with no sign of fresh investment or cost cutting the future of the club remains in grave doubt. Sevco have still to publish their audited accounts for the year to 30 June 2014.

The departure of Mr Wallace was inevitable after the former Manchester City supremo attempted to negotiate a deal to bring in serial tyre-kicker Dave King.

MASH appointees are likely to bring in a period of cost cutting which could reach every area of the club triggered by the appointment of a new chief executive.

As recently as Saturday Ally McCoist was singing the praises of Mr Wallace but it now seems certain that the former Question of Sport skipper will find relations more frosty dealing with a chief executive appointed by an a board  of Ashley nominees..

It seems certain that strong management skills will be needed to secure the position of the Ibrox boss rather than a cup of tea, mention of Springstein and telling supporters that the new chief executive shares his ambitions for the club.

A January warchest is unlikely for McCoist who spoke enthusiastically ten days ago about Mr Ashley and Mr King both investing in the club.

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