Sevco and DLA

I was interested to hear that people within the New Regime have been sending out feelers to several providers of external finance.

If you are loss making business without a credit line from a bank, you are more than likely to approach a Distressed Lending Agency (DLA).

These organisations pretty much do what it says on the brass plaque.

They provide finances at punitive rates to folk who have been refused everywhere else.

It really is quite sad.

Of course, a similar foray was made between December 2013 and January 2014.

Then it was CEO Graham Wallace and CFO Philip Tudor Nash.

They came away empty handed and then Sevco was in much better financial shape than it is now.

Then the metaphysical club had the backing of Mike Ashley, and the celestial entity had money in the bank.

The contingent liability of the Sevco 5088 claim was in the inaugural account of RIFC and that was a real sticking point for some of the DLAs then.

However, this is nothing compared to what currently hangs over the Ibrox club apropos the ownership of the assets.

The outstanding court cases involving Imran Ahmed, Charles Green, Craig Whyte and Gary Withey could raise very serious questions about the continuation of this business.

However, we cannot be certain about any that until these matters are disposed of by due process.

Until then the only thing that is certain is uncertainty and lenders, especially those in the distressed sector, do not like such a lack of certitude.

The audited accounts stated that RIFC had to raise £2.5m in external finance as well as generating a “conservative amount” of revenue from player sales in the January transfer window.

Neither has been achieved.

The figure of £2.5m has yet to be fully realised, and no players were sold in January.

I understand that the sum of £1m remains outstanding and is still to be raised.

However, I’m sure that those fine fellows in Rangers First will rally to the cause and provide the necessary liquidity.

There must be some minor technical matter preventing Mr David Cunningham King from commencing the overinvesting.

However, I’m sure he will come through and provide a substantial tranche of his vast personal wealth.

Whatever it takes and all that.

All in all, it is fairly challenging, but I am told that the very excellent Mr Stewart Robertson is doing a sterling job balancing the books as best he can.

Indeed, I would not be surprised if, like a top class penalty taker, he was not attracting covetous interest from other Holding Company Vehicles.

That said I doubt that he would wish to leave such a well-run and harmonious outfit.




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