Sevco have told the Alternative Investment Market that they are in urgent need of short term financing.
Talks are on-going with two parties- believed to be Mickey Ashley and the three rebel bears- with funds needed for next Thursday’s payroll.
Complicating the situation is Dave King’s call for an EGM which could see the current board removed.
That possibility will play a major part in Mr Ashley’s judgement with the rebel bears expected to back Mr King’s plan.
Should the rebel bears back off from teaming up with Mr King they could be awarded blazers although a directorship in a club going into administration will impact on their future dealings outside of football.
This morning’s AIM announcement read: “The Board notes press speculation and shareholder concern in relation to an Advanced Notice for a charge over Ibrox stadium (“Advance Notice”). The Company continues to need funding, including urgent short term financing.
“Over the past few weeks the Company has held discussions with a number of parties with a view to finding a stable financial future for the business. The discussions which have been wide ranging including, both stakeholders and third parties, are with a view to achieving the best possible terms for the business.
“Without the authority to issue equity on a non pre-emptive basis, the directors cannot issue shares in the timeframe required.
“At the current time the assets (other than Ibrox), cash flow and business of Rangers does not support a significant financing, on an open market commercial basis, to achieve the goals which the directors have set for the Club. Accordingly the directors are pursuing bi-lateral discussions with two parties who are both stakeholders in Rangers.
“These discussions contemplate a significant amount of capital being available to the business on a long term basis in order to enhance the squad which the directors believe is necessary.
“A consequence of funding to this level is that, in reality, it may be necessary to use Ibrox stadium as security; such a decision would not be taken lightly.”
“No decision has been taken at the current time while discussions are being finalised in good faith. The Advance Notice does not mean that security will be given, and the directors are adamant that it will not unfairly advantage the party with whom it was agreed.
“The Board will conclude a transaction, based on its merits, which it believes is in the best interests of shareholders as a whole in accordance with their fiduciary duty.”
Confirmation that Ibrox will be used as security should bring to an end speculation that Craig Whyte’s Sevco 5088 have a claim over the stadium and also Murray Park.