The Sevco project looks certain to be strangled to death after Dave King’s final appeal against the Takeover Appeal Board was quickly thrown out by the Court of Session.
Two days had been set aside to hear the appeal but shortly after lunchtime yesterday Lord Carloway, sitting with Lord Drummond Young and Lord Glennie rejected the appeal giving King 30 days to make his offer and 28 further days to honour it.
The South African based criminal will have to find £11m to underwrite the offer but the impact on Sevco is more far reaching as Phil Mac Giolla Bhain explained last night.
Sevco’s entire business plan has been based on the loose concept of a ‘debt for equity’ swap but with close to £20m of soft loans in a company that is worthless in realistic terms that idea always seemed fanciful.
It is three years since Sevco shares could be bought and sold in a reputable forum with just the in-house Club 1872 working furiously to prop up a share price.
There’s another big RIFC lie the SMSM is to lazy to check out; no one would accept a King offer @ 20p when the shares trade @ 27p. Fact is, there is no market in RIFC shares @ 27p. Go try and sell your shares @ 27p or, indeed, at any price. The number is tel:0207 469 0938. pic.twitter.com/Gxp0yea7Fr
— David Low (@Heavidor) March 1, 2018
Finding a broker and auditor to put together an offer that lays bare the detail of the Close Brothers loan will require a degree in accountancy gymnastics.
Yesterday’s ruling forces King to pay out between £2-5m to disillusioned institutional shareholders who know that their holding will be diluted if the planned ‘debt for equity’ move goes ahead.
With his own toxic reputation in the UK further highlighted by his actions at Sevco the club’s only source of financing will come from companies like Close Brothers or other firms out in the margins.
This season’s title race has been funded by pawning the car park, wi-fi, tellys and pie stalls ahead of next season’s season ticket money, yesterday’s defeat at the Court of Session takes Sevco to the brink with one wrong move pushing them into administration followed quickly by liquidation and a place in the football morgue alongside Rangers.