The Herald has broken rank and revealed that Sevco’s banking ‘facility’ with Close Brothers is actually a loan with the security held against the iconic Albion Car Park and Edmiston House.
Ten days ago it was ‘heralded’ as a great breakthrough that Sevco had secured normal banking facilities but behind the excitement the Internet Bampots found a rather different story.
Close Brothers are very much a lender of last resort, rather than an overdraft as claimed by Stewart Robertson the deal is for a £3m loan to keep the lights on until the end of the season.
Reporting on the document lodged with Company House the Herald reveals: “Edmiston House, which stands derelict, was formerly home to Rangers FC’s Social Club and ticket office. It was converted into offices in the early 1990s.
“Four years ago the building and the car park had been part of a redevelopment plan suggested by previous club owners that never materialised.
“Security documents now lodged with Companies House confirm that both properties have been put up as collateral for the funds which come after the board said they were faced with a multi-million pound shortfall for this season and next season.
“A list of conditions that have to be met include ensuring that the properties are in “good and sufficient repair to the reasonable satisfaction of the lender”. “
Significantly the Herald doesn’t mention that as well as the car park and derelict building the loan has also been secured against ‘other assets’.
With Dave King following the Three Bears in refusing to provide any further soft loans Sevco are now requiring external debt to see out the season with the season ticket money spent on Pedro Caixinha’s Latin war-chest.