The board of Sevco have issued a fresh warning to shareholders about the dangers of appointing Dave King to the board of the company that owns the holding group that runs the troubled football club.
Mr King, described as a glib and shameless liar by a judge in South Africa, has proposed that all of the current directors are removed with Mr King joined on the board by Paul Murray and John Gilligan.
The appointment of Mr King and Mr Murray would create a number of issues for the Alternative Investment Market with the South African based tyre-kicker still to announce which NOMAD would take over the company’s affairs.
This morning the holding company announced a new hotel to stage the March 4 EGM after security fears forced the cancellation from the previous venue.
Today’s statement warned: “For reasons beyond the control of the Board, the originally intended venue is no longer available for such a meeting. The Board has now found a venue which is willing to hold this meeting, and, as a matter of priority, has ensured that this meeting occurs on the same day as originally set.
“The Directors continue to recommend that shareholders vote against the Requisitioned Resolutions. In the circular to shareholders dated 6 February, the Board set out its position which envisages representation from all major shareholder groups (including New Oasis Asset Limited and the group known as the Three Bears), together with independent directors, where no one interest group will have a majority influence.
“The Requisitioned Resolutions contemplate a smaller board. There is no promise that all shareholders’ interests will be represented and serious regulatory issues remain unanswered, particularly in respect of the Scottish Football Association and the position of a NOMAD in the event that the Resolution to appoint Dave King is passed.
“Shareholders should consider who might be running the Company and whether it will continue to be traded on AIM if the Requisitioned Resolutions are passed. Mr King is encouraged to provide clarification to Shareholders regarding these matters.”
Before the EGM takes place the current board have to meet next week’s February payroll which will almost certainly require them to call in the £5m offered by Mike Ashley as part of the package that paid the January wages.
If Mr King is successful at the EGM his first task will be to repay the £10m loan facility to Mr Ashley with the onerous contracts covering retail, merchandising and the stadium advertising rights remaining firmly in the control of Sports Direct regardless of who sits in the blue room of dignity at the top of the marble staircase.
