DEFCON 1 COCKED PISTOL Nuclear war is imminent. Maximum readiness
DEFCON 2 FAST PACE Next step to nuclear war. Armed Forces ready to deploy and engage in less than 6 hours
The fast-paced diminshment of liquidity at Rangers Lite is now at critical levels. Rangers Lite are now at Sevcon 2.
The procedures for pre-pack administration could be initiated at any time. Any announcement would be published after business hours. Traynor is an old hand at burying bad news at 9pm on a Friday evening.
My source has confirmed Phil Macgiollabhain’s information. However he goes further. He is of the belief that the anti-King faction in the beleaguered board are threatening to pull the house down should King not step up with his first tranche of emergency capital. Alastair Johnston and Barry Scott provided short-term loans with the assurance that King would reimburse them. King, at best, is dragging his heels.
The following text is from the RIFC 2017 Accounts:
“At the time of preparation, the forecasts identifed that the Group would require a minimum of £4.0m additional funding by the end of season 2017/18 in order to meet its liabilities as they fall due. The first tranche of funding is required in November 2017. Further funding amounting to £3.2m is forecast to be required during the 2018/19 season. However, the final amount is dependent on future football performance and European football participation amongst other factors. The Board have discussed the Club’s forecast cash shortfall and have reached an agreement with New Oasis Asset Limited whereby they will provide additional loan facilities as necessary to meet the above requirements. Further to this, New Oasis Asset Limited and certain investors have agreed to extend their existing loan facilities to July 2019. The Board is satisfied that those parties will continue to provide financial support to the Group and have satisfied themselves as to the validity of the undertakings.
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 its ability to realise its assets and discharge its liabilities in the normal course of business.”
The material uncertainty is severe. Directors who knowingly trade whilst insolvent are at best suspended for 15 years, at worst imprisoned. This is where the beleaguered board now stand.
King, unsurprisingly, is not keen to venture any capital at this time. One of his counsel’s unsuccessful arguments at the Court Of Session was that King was penniless. If he provided £4m in the short term, Bannantyne would throw the book at him when he faces sentence for being in contempt of court.
King is also loath to relinquish his position on the board come hell or high water, including The Cold Shoulder.
My source is of the view that King has until 21 January to resign as Chairman. If he chooses not to step down the board will be forced to push the button.
The North Korea of football clubs may not have the best ICBM, but they are confident that they can take out King’s offices in Denton, while King takes cover in his basement.
With a gun to their heads the board know that pre-pack is preferable to The Cold Shoulder.