Tuesday 15 May
P341/17 Pet: The Panel on Takeovers & Mergers for orders sec955
The Takeover Panel’s solicitors, Denton’s, will submit yet another section 955 petition to order King to comply. The inveterate criminal does not intend to do so. Ringfencing some money in a South African bank, and then claiming that he was prohibited from transferring this quantum, is just one of the many lies told by King. As for his fallacious assertion that it takes time to open a bank account in the UK and that he would take the Panel’s decision ‘under review‘ he is lying through his back teeth again. He could transfer funds from his BVI trust fund to his solicitors account. James Blair could accommodate these funds in a thrice.
Is it any wonder that he insisted that his Club Orange Coterie of hand-picked journalists did not go to print until he was safely ensconced on a plane to Johannesburg?
The court action taken by the Takeover Panel is unprecedented. The Panel only received enforcement empowerment just over a decade ago. King’s cavalier criminality must be taken to task. However as things currently stand The Panel’s actions have all the bite of a paper tiger. They have not even inflicted paper cuts on the career criminal.
Today’s petition which is unstarred will be considered by Lord Doherty in chambers. On the balance of probability it will be approved. But then what?
I contend that The Cold Shoulder would be more effective. It beggars belief that this has yet not been executed. King is a pariah in The Square Mile. The City bible, The Financial Times, has reported on King’s reluctance to comply with the provisions of The Companies Act of 2006. Each and every company persuaded by Charles Green and Cenkos Securities to invest, now want out. The Easdale Brothers want out. Twenty pence per share is the best offer they will ever receive for the distressed equity.
King fears The Cold Shoulder. In a rare outbreak of honesty (fatten a sacred calf) King asserted that it would not impact him. However it would impact RIFC Plc as having a Chairman in financial purdah would have an adverse domino effect on RIFC’s supply chain and all the financial institutions that RIFC rely upon. To use one of King’s own metaphors:
The Cold Shoulder would lead to the collapse of the Sevco house of cards.
It’s high time that the Panel took the gloves off and invited the FCA to close down the prospective rights issue, or at the very least carefully scrutinise all transactions.
Of particular interest should be King’s stated intention to convert £10m of the loans to equity. Loans from the concert party who are expressly forbidden from participating in the rights issue. £10m that must be transferred to be UEFA FFP compliant.
Compliance seems to be a taboo word with King. However should he not keep the Gnomes of Nyon sweet, any recalcitrance on his part would most certainly have an impact on Rangers Lite.
If I were in charge of Kilmarnock I would initiate pre-season training early as Lite’s UEFA application, which hangs on the conversion of loans to equity, is far from home and hosed.