Yes that was my reading of the situation, they are abolutely aghast that someoen had the temerity to award a penalty AGAINST them.
Rangers confirm £1.5m loans from Sandy Easdale and Laxey Rangers have confirmed they have borrowed £1.5m from shareholders Sandy Easdale and Laxey Partners Ltd. Football board chairman Easdale is providing £500,000, while the investment group is supplying the rest of the funds. The League One leaders announced a £14.4m loss in the 13 months to June and the playing squad refused to accept a 15% wage cut. Rangers say the cash will be used for working capital over the coming months. Easdale's cash comes on a no-fee and no-interest basis, while Laxey Partners will lend the club £1m, with both sums secured against the Edmiston House and Albion car park facilities near to Ibrox. Both loans are repayable by 1 September, while Laxey Partners, the club's single-biggest shareholder with an 11.64% stake, standing to make a £150,000 profit on its part of the deal. The Isle of Man-based hedge fund may opt to take repayment in the form of fresh shares, but that would require shareholder backing at an annual meeting. Rangers raised £22m when they were floated on the stock market in December 2012, but former financial director Brian Stockbridge sparked concerns the club might be heading for administration for a second time last year when he claimed the club would be down to their last £1m by April. However, after the new loans became public last week, recently appointed chief executive Graham Wallace insisted that the club were not facing a second administration. The loans will now tide them over until season-ticket renewal fees start arriving at the end of the season. A statement to the Stock Exchange said: "The board of Rangers is pleased to announce that it has entered into two secured short-term credit facilities for an aggregate of up to £1.5m. "The credit facilities are being provided by Alexander Easdale, a shareholder in the company and director of The Rangers Football Club Limited, the wholly owned subsidiary of RIFC, and Laxey Partners Ltd, a substantial shareholder in the company. "These credit facilities will be used by the company for general working capital purposes over the next few months." They would have been cheaper going to Wonga. Imagine getting a loan from one of your main shareholders and being charged 15% interest AND asked for collateral.
15% for 6 months so 30% APR. Unreal They are struggling to get by and cant afford ther outgoings despite 2 years season books and the £22m share issue. Yet think get by to season book renewal time and they can afford to pay back this debt (and the other £2.5m Debt they have) and interest. How exactly do they propose to pay the bills long term?! Madness
They will issue new shares to pay back the loan, giving Laxey a bigger percentage of the company - and diluting the stake of every other shareholder.
Doesnt the other shareholders have to approve this though? Shares bought at 70p in some instances are now worth 26 - and would in effect become even less if diluted. Cant see them being over the moon with that? Regardless. Unless they make some pretty dramatic cuts (probably more to the non playing than playing staff) its only delaying the inevitable
Newco's market cap is £18m at the minute, the £1.1m paid back in shares at that cap would just about double Laxey's holding.
They will have the option of rejecting the creation of new shares, at which point the £1.15m will need repaid either by getting another loan or out of the cash balance. If there's not enough cash about to pay it back and there is no other loan option then new shares is the only option outside of administration. If you are a shareholder you'd probably accept a slightly smaller value per share to save it from being wiped out by admin (when they get into the SPFL the shares could bounce back - administration in the Championship could **** them completely).
I just realised it's a secured loan against the Albion Car Park and Edmiston house... a 30% APR secured loan is worse than Wonga - I'm paying 1.5% on a loan secured against property
And I'll add you 2 to the list of folk who fail at using sarcasm. Seriously, I'm offended. Mick = talking ****e as per.
In fact, scratch that. I forgot how much ****e you ****s talk when it comes to finances. Am offskies.
