I read Lord Bannatyne’s opinion several times. I was impressed with his grasp of the details and his grasp of The Companies Act. He reinforced his points with established case precedents. As I unequivocally stated in a number of blogs King’s spurious bid was destined to fail.
This is a great result for those who want the Augean stables swept from top to bottom. First Regan and now King, whom the former deemed fit & proper. King is only fit to be a proper career criminal.
Lord Glennie and his two estimable colleagues listened to Baron Davidson’s contention that Bannatyne had acted too hastily, did not distinguish between NOAL and King, and did not give due consideration to King’s impecunious position.
Counsel for the TPE argued that Lord Bannatyne’s reasoning and opinion were sound.
After an adjournment for lunch, Lord Glennie, with the unanimous backing of his two colleagues, ordered either King or NOAL to make an offer. The offer MUST be made.
King had kicked the can down the road in the hope of slipping a clandestine share offering under the radar of the TPE. This changes everything. Selling shares that he would then be compelled to buy back would only exacerbate his problems.
As everyone who reads my blogs knows there is a major schism in the board. King wrote to the beleaguered board prior to the hearing to inform them that NOAL would pick up the slack in the event of his appeal failing.
Baron Davidson probably advised him that the prospect of his appeal being upheld was somewhere between No Hope and Bob Hope.
However King advised the auditors that he would cover the £7.2m and lied. He also gave a personal guarantee to Hamilton to facilitate the signing of Docherty on a no deposit no return basis. He lied most probably on both occasions.
What will happen next is a concerted campaign to dissuade anyone from going ‘rogue’ and buying the shares at 20p. The mantra will be don’t sell yourself short. We have assets like Morelos worth £15m and are doing well on the park. He will inform the Gullibillies that the only way is up.
His appeal to the emotional stakeholders, who bought with their hearts and not their heads, will succeed. The problem for King is that the hard-headed corporate investors will bale out. The Easdales might also bite his hands off.
If either or all of the Three Bears decided that it was high time to go the shit would really hit the fan. Taylor, Park and Letham might choose to bale out. Given the last gasp Close Asset Finance deal, they know that the are up shit creek. King MUST provide a paddle.
As for The Cold Shoulder will the TPE act now or await NOAL’s offer?