Dave King is scheduled to fly into Scotland next week- keeping with tradition won’t be attending a Sevco match.
While some might view it as the chance to speak to Brother Pedro for the first time to discuss the transfer war-chest there is a more basic reason for the visit of the South African based criminal.
King has until April 12 to raise a potential £14m after a ruling by the Takeover Panel that he acted in a concert party when buying shares at new year 2015.
With his own limited resources and South Africa’s tight currency rules the policeman’s son from Castlemilk will have his work cut out to prepare a prospectus and offer to buy every share at 20p per share.
Since the company no longer has a NOMAD share dealing is through matching a buyer and seller meaning that shares are almost worthless.
King’s biggest fear will be that shareholders hostile to him will cash in on this opportunity to salvage something from their doomed investment. The Easdale brothers and Mike Ashley are likely to be in that camp as well as the groups who are blocked from voting.
More worryingly for King is the prospect of any of the Three Bears coming under pressure to cut their losses.
The company is running bigger losses than when King swept to power in 2015 with Douglas Park, George Taylor and George Letham propping things up with soft loans.
If King refuses to share his plans, produce a break-even schedule or provide his own soft loans it could be time for some of the bears to abandon King rather than run up more loans/debt.
It’s unlikely that Ashley will offer a rescue plan, he has control of the only profit making arm of the company, retail and merchandise, but after more than two years of being attacked at every turn seeing King on his knees and shown up with provide a laugh at Sports Direct HQ.
