As I have repeatedly written here, accessing external finance is key to the continued survival of the Holding Company Vehicle.
Without it, the Engine Room Subsidiary would grind to a halt.
For the avoidance of doubt here is an extract from the published accounts of Rangers International Football Club (RIFC) last year:
“The Board of Directors has received undertakings from certain shareholders that they will provide financial support to the Group and have satisfied themselves as to the validity of these undertakings and that the individuals have the means and authority to provide such funding as and when it is required. The Board acknowledge that had these assurances not been secured then a material uncertainty would exist which may cast doubt over the Groups ability to continue as a going concern and therefore it’s ability to realise its assets and discharge its liabilities in the normal course of business. The Board is delighted that this uncertainty has been removed and the appropriate assurances obtained.”
The accounts can be accessed here.
When the Holding Company Vehicle was listed before March 2015, any major development, like a loan, had to be notified.
Here are the details of the facility agreed with Sports Direct in January 2015.
Only £5m of the available £10m was drawn down, and that was paid back twelve months later.
Of course, one of the major policy changes after the Off Licence Putsch was a promise of greater transparency.
That’s probably why it is not in the public domain how Ashley got his £5m.
It is accepted that the £5m was paid back, but what is not a matter of public record is where the money came from.
My information is that it was borrowed.
Moreover, I understand that the principal was acquired only after agreeing to a rather punitive rate of interest and onerous conditions.
Of course, Mr David Cunningham King will have the full picture of what was arranged.
Moreover, I’m sure he will have shared all of the vital details with his boardroom colleagues and senior members of staff.
Indeed, I cannot envisage a scenario where he wouldn’t do that as he is renowned for scrupulous honesty in his business dealings.
Let us start from the point that the £5m owed to Ashley was a fresh loan.
The source, terms, and conditions of that facility is a major story.
No doubt some award winning stenographer is working away at it right now.
Following up leads and piecing together what really happened.
After all, that’s how awards in journalism are won, dear reader.
What is also not up for debate is that the Holding Company Vehicle requires further external finance to get to the end of this season.
Without it, the Engine Room Subsidiary will be in severe trouble.
Will Mr David Cunningham King arrange another loan to stave off insolvency?
If he managed to do that, then I certainly couldn’t begrudge him a little finder’s fee.
I really wouldn’t, and I’m sure his colleagues in the Blue Room would consider that he thoroughly deserves it.