King predicts Sevco administration by Christmas
The South African based billionaire poured £20m into Rangers under the Dave Murray regime only to lose every penny.
In March 2012 his prediction that Rangers were heading for liquidation was rubbished by Duff and Phelps- three months later the club went into liquidation after failing to achieve a CVA.
King has watched from afar the actions of Charles Green and has no doubt that it is all bound to end in tears- again.
“There is an inevitability to the fact the people currently operating Rangers are going to run out of cash,” he told the Daily Mail.
‘The club raised £22m via an IPO (Initial Public Offering) and that was whittled down to virtually nothing.
“I think it was down to £5m or £6m in the bank and has now got a boost via season-ticket sales but the way directors are spending money on Green’s consultancy fees and other things, I don’t think they will make Christmas.
“The question then is: when they go to the markets again, are they going to find other investors willing to put more money in the club?
“We had all these guys come in and buy into Green’s business plan. They paid 70p a share and witnessed those shares lose value very, very quickly.
“They are not going to increase their holding and other investors are going to be very, very wary.
“So if they get to the point where they are close to administration again by Christmas and the season-ticket money is gone and they have the same high overheads and are running out of cash, they will be faced with administration again.
“And what that will mean is all the shareholders — including Green — losing all their money. In which case, they will have to be realistic about their demands at that stage.
“The club is being run on the basis of protecting shareholder value — particularly by those who paid nothing for the shares and want to make something.
“It’s a question of Green making £2m, £3m or whatever. He regards that as his compensation for what he thinks he has achieved.”
Carmunock-based billionaire Jim McColl has called for an EGM to remove three current directors in order to provide greater corporate governance.
The audited accounts for Sevco/Rangers International have still to be published.