Ally McCoist has delivered a stunning blow to Dave King by refusing to back an AGM resolution that would allow Sevco to issue new shares to anyone they like.
According to a report in the Daily Record, who tend to get the inside track on these matters, McCoist’s failure to support the proposal has left the Ibrox board stunned with the club denied a key source of fresh capital.
If the resolution had been passed existing lenders could have had their soft loan converted into shares. Sevco currently has £14m of soft loans due to be repaid in December 2017.
With that option closed the club can only offer existing shareholders a same again offer of new shares but having seen the price crash from a launch value of 70p down to around 20p there will be little appetite to ‘invest’ further.
McCoist got his 1.25% shareholding for 1p per share from founding father Charles Green who brought Mike Ashley to the club with the same deal.
By blaming the former Question of Sport skipper for the failure of the Resolution McCoist can expect to feel the anger of the Ibrox support.
It’s likely that Paul Murray’s favourite newspaper will give Coisty the Mike Ashley treatment.
When liquidation followed administration he vowed not to do walking away as he TUPE’d over his £750,000/year salary to the new club.
After three and a half disastrous years in charge he announced his resignation in December 2014- kicking in 12 months on gardening leave.
Sevco’s 2016 accounts revealed that the club required a further loan of £750,000 in March to stay afloat, with Resolution 11 defeated that funding may now be in doubt with a knock on effect on Mark Warburton’s January transfer warchest.
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