Rangers Announce Secure Loan - £1.5m. Repayable by 1st Sept

[forlanssister 3,061]

No all our shares are called penny shares. Despite that the price varies.

 

26.5p is the maximum price they will have to pay, they know we'll need a rights issue and a lower price actually suits them as they're effectively lowering the average cost of their shares meaning they can exit with a profit with a lower share price than at present.

[BrahimHemdani 1]

 

 

the charge will be 10% and laxley will pay easdale his cut.

 

Perhaps I was a bit quick to withdraw my earlier post; time will tell who gets what, or perhaps it won't.

[Zappa 0]

From the BBC website, I note another piece of the jigsaw falling into place.

 

Rangers: Imran Ahmad seeks £750,000 damages from Ibrox club

 

By Alasdair Lamont

Senior football reporter, BBC Scotland

 

Lawyers for Rangers' former commercial director Imran Ahmad will on Tuesday ask a judge to arrest funds of £750,000 as their legal battle continues.

 

Ahmad's lawyers will argue that the Rangers Football Club Ltd is trading insolvently and would be unable to pay if he won his claim against them.

 

The man who arrived at Ibrox as part of Charles Green's team initially intended to pursue £3.4m.

He claims he is owed at least £500,000 in unpaid bonuses.

 

The case will be heard by Lord Tyre at the Court of Session in Edinburgh on Tuesday morning.

It emerged earlier this month that Ahmad's lawyers wished to call Green as a witness, something Rangers are reluctant to see happen.

 

Rangers do not have their financial woes to seek currently and announced on Monday that they had secured loans totalling £1.5m to help them meet cashflow requirements for the remainder of the season.

 

Players also refused to accept a 15% pay cut proposal as the Rangers chief executive Graham Wallace seeks to make savings.

 

The company set up a £1.5m credit facility on Monday and Ahmad asks the Court of Session to arrest funds of £750k the very next day?

 

You couldn't make this up.

[the gunslinger 3,366]

Rangers chief executive Graham Wallace was forced on to the defensive again after fan groups described the interest to be paid on a controversial £1.5million loan as ‘unduly onerous’.

 

The Ibrox outfit confirmed details of the short-term credit facility that will help provide a financial bridge towards season ticket renewals in the summer.

 

Sandy Easdale, chairman of the football board at Rangers, is putting forward £500,000 ‘fee and interest free’, but the club’s largest single shareholder Laxey Partners will rake in £150,000 worth of interest for the £1million they are contributing.

 

Defensive: Rangers chief executive Graham Wallace (right) insisted the £1.5million loan is not a risk+6

Defensive: Rangers chief executive Graham Wallace (right) insisted the £1.5million loan is not a risk

The loans are secured against both Edmiston House and the Albion car park at Ibrox and are repayable by September 1 in either in cash or shares.

 

The terms of the deal have upset supporters with the three main fan organisations issuing a joint statement on Monday. They claimed to have been approached by shareholders who would have been willing to lend the money on better terms and expressed concern that not all shareholders were being ‘treated equally’.

 

Indeed Allan McLeod, an insolvency practitioner with MLM Solutions, told Sportsmail: ‘If £1m is being loaned by Laxey and it’s repayable after six months, and they are getting £150,000 back - that’s a 15 per cent interest rate, 30 per cent APR, which is quite astonishing.’

 

Wallace, however, insisted the Rangers board had studied several loan options before reaching their decision and that Laxey Partners were earning a market rate. The agreement was endorsed by the club’s nominated advisor (nomad) in the City of London, Daniel Stewart.

 

‘It’s important to say we went through an extensive process to look at a variety of alternatives,’ he told Sportsmail.

 

‘We worked in partnership with our nomad to look at the alternatives that were there and the board formed the view that the facility we’ve put in place is the most appropriate at this moment in time.

[the gunslinger 3,366]

http://www.dailymail.co.uk/sport/football/article-2567035/More-financial-unrest-Rangers-chief-Wallace-defends-loan.html

 

Market rate. The lad Wallace is having a giraffe.

[BrahimHemdani 1]

the facility we’ve put in place is the most appropriate at this moment in time.

- Wallace.

 

So base + 29.5% APR is an appropriate rate for a secured loan to one of Scotland's oldest institutions, albeit one that has just come out of an insolvency event.

 

We could all club together and get credit card loans at the same or better rate without giving up any security.

[the gunslinger 3,366]

I'm no business man but it seems very very high. then again if Wallace is serious maybe he isn't either.

[SteveC 150]

I'm no business man but it seems very very high. then again if Wallace is serious maybe he isn't either.

 

Or he, too, is 'very, very high'. It would explain a lot. I note his comments re the fan groups' statement is not in keeping with the oft quoted aim of "transparency".

[Super Cooper 0]

Wallace is becoming more and more like the spivs every day. How can we possibly get behind someone like that?

[Calgacus 8]

The securities that Laxley and Easdale are taking over the car park etc will cost the Club - the Club will be expected to pay the lenders' legal and other costs (surveyors etc) as well as the Club's own legal costs. That will add up to a good few thousand pounds.