Share Option authorised

There was an important series of discussions involving all of the main players in the Ibrox omnishambles this week.

On Tuesday a conference call between senior personnel at Rangers International Football Club (RIFC) and chaps representing Blue Pitch Holdings and Margarita Holdings took place.

These two companies were in at the start of this business venture when Charles Green fronted a consortium that bought the assets of Rangers (1872-2012).

Their shareholding comes from the ‘penny shares’ that were converted at the IPO in December 2012.

Throughout various conclaves this year they have been against the use of an Insolvency Event to get the cost base under control.

On Tuesday they surprised the senior RIFC people when, during the call, they advocated austerity measures as a matter of urgency.

A further meeting of all of the main players was set for Thursday to discuss the Share Option as laid out in the recently published 120 Day Review.

On Thursday the Share Option was unsurprisingly voted for and will now be actioned.

The monies raised from the sale to existing shareholders of 43.4 million shares could cover the running costs of the loss making operation for, perhaps, four months.

Blue Pitch Holdings and Margarita Holdings want this cash to be used for redundancies and slashing budgets without recourse to an Insolvency Event.

Regular readers may recall that Graham Wallace and Philip Nash toured the City of London some months ago looking to raise ‘Distressed Financing’ to fund an austerity programme.

However, the Contingent Liability of Sevco 5088’s potential legal claim scuppered that move.

As long as the current entity at Ibrox exists then the folks at the other end of these pesky ‘onerous contracts’ will be doing very nicely from the retainers.

I understand that some of these agreements last up to twenty years.

Moreover they are with the parent company RIFC and not with The Rangers Football Club (TRFC) formerly known as Sevco Scotland Limited.

Subsequently even putting the subsidiary into liquidation would not break these contracts.

For the people who are beneficiaries of these legally binding agreements then they have a vested interest that Sevco continues to breathe.

Even if it is on life support then this Rangers will continue to bleed out money in their direction.

The big divide in the RIFC tent until now has been those who were in at the start with Charlie and the people who bought in at the IPO.

The discussions after the AGM in December last year was how best to implement austerity measures.

Laxey Partners wanted to use Administration and they drew up, at considerable expense, detailed plans for this in February.

However the penny shares chaps were against that course of action.

One by one the Institutional Investors saw the sense of what Laxey Partners were arguing for except , I am told, Hargreave Hale.

What Blue Pitch Holdings and Margarita Holdings want now is the sort of austerity that Laxey partners wanted to implement in February by using a controlled Administration.

The austerity or insolvency choice has been there since the start for Sevco.

The IPO brought people in who wanted to see their shareholding increase in value, which is why folks like Laxey invest in companies in the first place.

Now with the club/company/celestial entity starved of badly needed Season Ticket revenues by the revolting fans then we are in a new chapter of the Sevco Sitcom.

As I have written here more than once this could not be scripted better if you wanted to see the home crowd at Ibrox benefit from some consequential learning.

Leave a Reply