There is a perfect paradox at the heart of Gary Ralston’s piece in the red top rag that is best viewed online. Mr Ralston has now disclosed that the seven year notice period can only be initiated once the £5m debt has been repaid. That’s yet another breach of a High Court order. The stupidity of this board never fails to amaze me.
There appears to be some confusion in those who take the time to contribute on this site. First of all there was no interest on the £5m loan as specified in the RNS to LSE AIM. No-one, not even Phil Mac, has access to any penalty clauses that may exist within the agreement. The current board are in breach of the agreement. Ashley gave the board one final chance to repay their debt in June. This eleventh hour offer of £5m will fail. King and his board know that they are in default and know that the IP has gone. This is a desperate attempt to get back to the negotiation table.
It’s a very clever PR exercise, but it fell over when King added Murray’s name to the list of the £5m saviours. Mr Murray has been an abject failure as Vice Chairman. He has delivered nothing and his botched attempts to negotiate with Ashley has led to the current impasse. He is a failed entrepreneur with no appreciable wealth. King as everyone knows, has not risked one South African Rand of his own money to acquire shares. The £1.5m loan attributed to King was a barefaced lie by Paul Murray. In April, if not before, the source of the £1.5m will be revealed in court. King and Murray’s lies to shareholders will be exposed.
Mike Ashley will not rest until King and Murray are removed from office. He has unleashed a tsunami of legal action. The board are drowning, hence their desperate attempt to construct a £5m life boat. The opportunity for negotiation ended in June. Going forward, everything will be decided in court.
King contradicted himself at the AGM. In one breath he said ‘once we raise the £5m‘ and in another that ‘it was in place.’ There is no £5m. It is not in our Metro Bank account. King is bluffing and when negotiations break down he will have given the shareholders a sense of his acting in good faith, with Mr Ashley not prepared to compromise. It’s a clever bluff. The last throw of the dice prior to King’s contempt of court hearing.
James Blair, who has no training in English tort, expressed the opinion of someone who would be perceived as a layman in The High Courts of Justice. If the Chairman, David Somers, was authorized by his Chief Executive, Derek Llambias, and Financial Director Barry Leach, then that’s the end of the argument. If challenged in court they will affirm their assent. Sandy Easdale, who was Managing Director of The Rangers Football Club plc, was required to sign as the floating charge has an impact on TRFC plc. If this is the best argument that they have to breach the injunction, they will fail.
King has the SMSM eating out of their hands. I wonder who will be first to break the story of Ashley’s intransigence to King’s ‘good faith.’