The CEO of Rangers PLC approached me on the 22nd October 2014 asking whether I would be willing to provide a short term loan to RFC Ltd. He informed me that he had been given a remit by RFC PLC to negotiate terms and to report back to the Board. My lawyers, DLA, proceeded to negotiate terms with RFC lawyers. After much discussion between the parties, the following terms were offered on Friday 24th October 2014.
1/ A £3m facility for a period of 6 months from the date of the drawdown.
2/ 3% annual charge
3/ Fixed security charge over Albion Car Park and Edmiston House
4/ The Board of RFC would endeavour in the future to extend this to security over Murray Park as they were unable to grant such at this time.
5/ Ibrox Stadium to be protected in a Trust or a similar Legal mechanism that would allow this asset to be used solely for RFC in whatever legal entity to play football in perpetuity.
6/ Paul Murray to be appointed to the plc main board for a period of 24 months.
7/ A lightweight floating charge over all assets except Ibrox Stadium
8/ No qualifying floating charge to be granted to any other party.
9/ In the event of administration the lender would have the right to appoint the Administrator.
The loan (of which £1 million pounds had been provided by Mr George Letham) was designed to give the Board of Rangers PLC the time needed to pursue Dave King’s offer and/or a new share issue in order to ensure long term financial security for the business.
Furthermore the appointment of Paul Murray would provide much needed harmony between the Board and the supporters.
I was informed by Mr Somers that the Board had no objections to any of these terms. He later informed me that he had made the decision to go with Mr Ashley’s offer after consultation with the Major Shareholders. This is their prerogative.