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Herald breaks rank with King’s contempt charge

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The Herald has gone mainstream with the news that Dave King is facing a contempt charge at the Court of Session.

For over three years the Sevco chief has dragged his heels to avoid making a 20p per share offer to the shareholders excluded from his 2015 takeover with the Three Bears.

Earlier this month the Takeover Panel issued a lengthy statement explaining how they had been forced to take court action with King telling BBC Scotland that he was being bullied.

That will cut little water with the legal system with the TAP giving an extensive breakdown of how they have given the South African based criminal every opportunity to comply with their rules.

The Herald reports:

Rangers chairman Dave King is to face court-ordered contempt proceedings over a failure to make a judge-ordered £11 million bid for most of the club’s shares.

It has been confirmed that the Mr King will face a contempt of court hearing at the Court of Session on Friday having failed to comply with a court order to make an offer to Rangers shareholders in March.

The Rangers chief has already been told that he is in breach of takeover rules by failing to make the bid.

A judiciary source confirmed the hearing was by order of the court with Lord Bannatyne expected to preside.

Action of this level is virtually unknown of with most people acknowledging the fact that they must make an offer to other shareholders if they acquire 30% of more in a company.

Most Sevco shareholders will want to hold onto their holding but a number such as the Easdale brothers are likely to accept the 20p offer for shares which are virtually worthless.

While Managing Director Stewart Robertson claims that the football company will be unaffected by any action on King they have been left virtually paralysed by King’s involvement.

Despite various promises King hasn’t had any share issues since taking control in March 2015.

Last season the Three Bears stopped providing Sevco with soft loans, the club’s audited accounts claimed that King would meet the shortfall between income and outgoings but in February 2018 the club turned to Close Brothers for an emergency loan.

King also faces court action at the end of this month over his refusal to disclose to Sports Direct details of a new retail and distribution contract agreed with a third party.

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