The cash crisis at Sevco has deepened with the board rejecting the ‘rescue package’ proposed by soccer guy Robert Sarver.
Without any sign of due diligence being completed the Phoenix Suns owner has made two bids for the troubled club with both being knocked back.
Part of Mr Sarver’s offer was an immediate cash injection of £6.5m that would have kept the club in business into next month, with that source rejected and Mickey Ashley lukewarm over further loans the future of the club remains in doubt.
This morning’s Alternative Investment Market announcement read: “The Board of Rangers has considered the revised possible offer from Robert Sarver (or a vehicle to be established and controlled by him) (“Mr Sarver”) which Mr Sarver announced on 8 January.
“The revised proposal by Mr Sarver was similar to his first proposal in the respect that it sought a placing of 100 million shares (to be priced at 20p in this proposal) (“Placing”) which, would require the approval of shareholders (at least a 75% majority) at a general meeting.
“The Board of Rangers rejected the first proposal from Mr Sarver on 6 January on the basis that the Board felt it unlikely that the approval of shareholders holding sufficient shares would be forthcoming.
“Following receipt of the revised proposal from Mr Sarver, the Board has sought the views of a number of major shareholders on this revised proposal and has reached the same conclusion, namely that the resolution to approve the placing is unlikely to achieve the 75% majority required.
“Accordingly, once again, the Directors do not intend to hold the General Meeting which would be necessary to implement the revised proposal.”
Other than Mr Ashley the Three Rebel Bears, led by bus magnate Douglas Park, seems the only other finance option.
The Rebel Bears bought 15% of the club independently before the new year but have so far failed to request an EGM that would force through the issue of boardroom representation.
Less than 20,000 fans are expected at Ibrox on Friday night for the visit of Hearts with the visitors being allocated 2,000 tickets.