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As Predicted: Rangers FC postpones ISDX stockmarket listing – King et al to bail it out (at a price)

By Tom Winnifrith

2 November 2015 00:30

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Rangers FC (RFC) has announced that it will postpone its ISDX stockmarket listing until the criminal cases against Charlie Green, Imran Ahmed, Craig Whyte and others are concluded. Pro tem Dave King and associates will bail the club out with short term loans. This is all to do with who owns Ibrox.

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Comments

BlueFrew

2 November 2015, 05:07

I’m puzzled why you think that the ownership of Ibrox and Auchenhowie will revert to BDO, but seemingly not the club (trademarks, crests, players, memberships etc). Everything was bought as a job lot from Duff and Phelps by Charles Green.

There is, I suggest, a simpler explanation. Dave King is not in a position to invest at the moment for whatever reason (can’t move money out of S. Africa without SARS getting twitchy? doesn’t have the money?). He is however a significant creditor of RFC 2012 Plc. BDO have done a great job getting money in for creditors, for example shaking £24 million out of Collyer Bristow. Dave King looks like he’ll receive a reasonable payout and I would suggest it is this money that he intends to use come share issue time. Other smaller shareholders in RFC 2012 will also be getting payments at the same time. These will overwhelmingly be Rangers fans rather than investors. There is a good chance that a lot of that money ends up going into a new share issue.

Of course the initial payment to creditors has been delayed because of the Law Financial ‘claim’. That particular claim is presumably at the back of the queue while trials go ahead against Whyte and Green.

The remaining question is current cash burn and the use of shareholder loans to fill the gap while legal processes sort themselves out. The departure of McCoist and many of the overpaid wasters he brought to the club has probably helped. The squad (which is the main cash burn) is smaller, much younger and I would imagine the wage bill has come down considerably from last season. Enough to stop the losses? Very unlikely. Enough to bring them down to a level where the club can survive assuming they are promoted this season. Possibly.