The King’s terms

As stated earlier today the arrival of Mr David Cunningham King at the Big House yesterday afternoon was unscripted.

Indeed, as a board meeting was breaking up, in some disarray as it happens, Chairman David Somers received a call from Mr George Letham.

He told him that Dave King was in the car with him and that he had £16 million and that he wanted to meet. with the RIFC Board.

Letham then stated as an assertion that he knew that they could not meet payroll in November.

Mr King and Mr Letham met with the RIFC executive of David Somers, Philip Nash and James Easdale.

I’m paraphrasing, but Mr King stated that he wanted to bring back Rangers to the path of dignity and integrity.

He told them  that he is willing to underwrite a Rights Issue to the sum of £16 million.

For that he wants to have two seats on the board one of them the chairman.

Of course such a rights issue of that size of the company with a capitalisation of £18 million would result in massive dilution of existing shareholdings.

It would be turkeys voting for a seasonal fest around December.

Mr King stated that he wanted to retain Graham Wallace as Chief Executive.

My sources tell me that the only people who knew of the King arrival  in Scotland were Mr Letham, the chaps at Sky Sports and Graham Wallace.

It became evident as Mr King spoke that he was equipped with precise financial details of the current troubles of RIFC/TRFC.

Should Mr King be successful in this move then, of course, RIFC will survive as a company and will be contractually obligated to honour those pesky ‘Onerous Contracts’.

Mr Wallace made reference to them in his 120 day review so I suspect Mr King will be aware of them and the challenges that they present going forward.

Mr King’s proposal will have to be passed at the AGM by a considerable majority.

If it does not pass then the South African based entrepreneur can say to the Ibrox faithful that he tried his best.

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