The Taming of The Shrewd

The shyster board of Rangers are now prepared to lie to its shareholders. They are fabricating scenarios to rescind the voting rights of those opposed to their underfunded hostile takeover. The shyster board issued a statement stating an SFA rationale to rescind the voting rights of Mike Ashley. When tested in the Court of Session, an interim interdict was granted to preclude this illegal resolution being presented to the shareholders.

As I have stated in a number of articles, if resolution 10 was granted by a 75% majority, a career criminal could allot shares to his heart’s content, rewarding himself and those he approved of, while simultaneously diluting the voting rights of others. It was remiss of the board not to mention that should this resolution be passed by 75% of those who choose to vote, they must give MASH 21 days notice of any share allotment during which period an injunction will be raised.

But frankly what did we expect from the Glib and Shameless liar? Did we expect him for the first time in a career of corporate malfeasance to play with a straight bat? King was summoned to the SPFL yesterday. Doncaster read him the riot act. If he and his shyster board continued to avoid paying the £250,000 fine and the costs of the ‘independent’ commission, Doncaster would not be able to defend against the clamour for title stripping. Furthermore, King’s part in the tax evasion, as a non-executive director during the EBT years, would be subject to public scrutiny. Doncaster knows that there will be no last minute appeal to the Supreme Court. This ball will not be kicked into the long grass. King left Hampden with a flea in his ear and an invoice for £400,000. When challenged by Richard Wilson of the BBC, who would have been tipped off by  the media-savvy Doncaster,  King came up with the ‘cosy chat’ fence as he removed his tie to secrete it in his pocket. By calling Wilson, Doncaster issued a tacit threat to King.

At the AGM tomorrow, a man who we now know borrowed money to buy his shares and £1.5m to present another lie to shareholders of his personal investment, will incredibly be re-elected as our chairman.

His almost nine months tenure has been marked by absence, lies and his inability to maintain a listing for the equity of shareholders. He has openly lied to shareholders in regard to an investment of £30m  when he does not have  ZAR 30m (£1.38m) to his name. His fellow director, Paul Murray, at his behest, leaked confidential details of a commercial contract to The Daily Record, leading to injunctions being served on King, Murray and Gilligan, and circa £400,000 in litigation costs. King has given an interview to Sky Sports showing  an inventory of wine that he misappropriated; this has now been returned to its rightful owners to preclude King being subject to arrest and three months imprisonment for a flagrant breach of his contempt of court conviction conditions.

King’s appointment has been so controversial that it will be challenged in The Court of Session in April, and as of 9th December he may be imprisoned due to failing to heed the conditions of a court injunction.

A man who has invested nothing and cost a minimum of £1m in litigation, will stand before those assembled at the Clyde Auditorium and ask them to trust him because he might have attended a few games at Ibrox when he was not hustling golfers at his local club.

Those jockeying for a position at the helm of the new group Rangers First CIC will be bending over backwards to support King. They cannot wait to exercise their new powers to give King a soft loan.

I look forward to these self-serving leaders of Rangers First CIC outlining their rationale for providing a soft loan to this career criminal and his shyster board. The illusion of a loan for equity has been shattered by a legal undertaking by the shyster board. If they had any common sense they would retain their funds to buy the club from administrators as this underfunded hostile takeover has run its course.

 

Annual General Mêlée

It’s interesting to note that not one member of the SMSM is prepared to break cover on King’s borrowed millions. It’s now an open secret, but they’re hiding behind the cover of ‘sub judice.‘ In doing so they are allowing Rangers shareholders to walk into the Clyde Auditorium on Friday morning blindfolded.

These individual shareholders own just under ten million shares. The majority of them have probably cast their vote by post. They are honest, hard-working individuals who will not be able to take the morning off work. They will follow the action from the Twitter feeds of the STV.

However, the real horse trading is going on behind the scenes. Do the the real power brokers, who have skin in this game, allow King to turn up and brazen it out? This is a risky strategy, as Level 5 and Sub Judice may not be enough to stop someone with integrity going to press on Thursday evening to expose King’s subterfuge.

Will King be advised not to attend? They could threaten him with a vote against his re-election. King will be reticent about coming to the UK and then returning to London on the 9th to face contempt charges. He will be apprehensive as he knows that he could be sent down. I do not envisage King attending court on the 9th. He knows that Adam Lewis QC will wipe the floor with his counsel. The tape of the Sky interview will be compelling. No matter what occurs on Friday,King will continue to own 14.57% of the shares and voting rights. There may be a warrant out for his arrest as of 9 December, but he will not be extradited on Contempt of Court proceedings. There is also the not inconsiderable problem of his three year’s suspension of a three months prison sentence. This is also public knowledge now, but I note that Graham Spiers chose to dismiss a court transcript as a ‘theory.’

Douglas Park and his son Graeme are unlikely to throw Murray and Gilligan under a Park’s bus on Friday. If the former has to be removed due to his numerous lies in regard to King, this will be handled discreetly. John Gilligan, in my opinion, deserves to survive the boardroom cull.

Of even greater concern than King’s lies, treachery and deceit, is Green’s petition for costs. There is a rumour now circulating that his petition will be upheld, and that any money that could have been raised in a soft loan from Rangers First CIC, will be siphoned off to pay Green. If they choose to baulk at this prospect, then the problem of King’s lies about investment will be in sharp relief.

King’s Greenmail

“The following is taken from an STV article on the Court case which was later deleted by them on legal advice. Apparently the issue of who loaned King the money is sub judice and they were advised to wait until evidence is given in Court on the issue.
Here it is:

They make reference to his 41 convictions for contraventions of the Income Tax Act in South Africa. Mash further argue that the outstanding contempt of court case against King, which is due to call at court in London in December, also reflects upon the Rangers chairman’s suitablity. There is also mention of his conduct when he first came to power at Rangers.

It is claimed that upon becoming a director of Rangers International Football Club plc, King borrowed large amounts of money from third parties to then give the cash to The Rangers Football Club Limited. This was after Rangers had entered into a loan facility with Sports Direct.

Its the second paragraph which is interesting as it suggests that Ashley knows where King got the money from to fund his share purchase and all will be revealed. If shown in Court it will expose King as the liar he is and blow all his claims of wealth and kids inheritance out of the water. It will also expose his inability to transfer money out of South Africa due to Exchange Control regulations as a minimum and any other conditions imposed on him.
The bottom line is Rangers fans were about to be royally shafted and unless Rangers First and the RST have a change of heart on their position then so it will continue. The SFA are also in an invidious position and I would imagine Regan is looking for another job or contemplating how he can squirm out of this. There is so much happening here one can only guess at the final outcome. I do not for one minute believe that Douglas Parks re-appointment to the Board was for altruistic reasons. Rumours have abounded for at least 6 months regarding his dismay for King and Murray. Perhaps he has seen the light especially after todays Court case and he will make moves to throw King and Murray under the nearest bus. From there he can go to Ashley with a clean sheet and begin the process of negotiating with him as opposed to confronting him. I can see an out of Court settlement to resolve issues with the SFA piggy backing on to save their sorry faces.”

Chapeau to Moe Goe for the preceding text. Those of you who picked up the unexpurgated STV narrative, prior to their solicitors stepping in, will now know that King has lied to every Rangers fan. There is no place to hide for those who continue to say ‘let’s wait until January, or the close season.‘ Surely King is a Real Rangers Man? Surely he will do the right thing?

As I and those on the RSL have been shouting from the rooftops, King ‘s shares and the money attributed to him by way of his alleged £1.5m contribution in a soft loan, was borrowed. His pig-headed stupidity of thirteen years of evading tax and allegedly bribing a tax official, did not lead to a favourable result. The only upside for King was that he avoided prison, and that his co-defendant on racketeering charges, Greg Morris, allowed him to be a shadow director of their latest fraudulent corporate enterprise.

Every asset that King formerly owned went under the hammer. His houses have a £17m mortgage that is secured on the houses themselves and his preference shares in Micromega Holdings Group. There is no family inheritance as King spent all of it in £50m of legal fees. All that remains unknown now is the source of his loans. King could not borrow from anyone in South Africa. He cannot show his face in the golf clubs where those with appreciable wealth congregate. The money he borrowed probably came from George Taylor, George Letham or Douglas Park. He probably lied to them about his alleged wealth. They now know exactly what they are dealing with. King is engaging in greenmail.

Phil Mac broke the story that King attempted to sell his shares to Ashley on the day of the EGM in June. At that time, Bill McMurdo on the RSL, took the position that this was a malicious slur on the Rangers chairman that had no foundation in fact. This narrative now chimes true. The premise of greenmail is to acquire equity that others will have to pay a premium for to remove a hostile stakeholder. King was probably pitching his 14.57% at a figure north of £5m. That would have given him a profit of £2.5m for a few days work. Ashley did not bite, but knew immediately what he was dealing with.

It’s just a matter of time now for King. He can either go now or be publicly disgraced on December 9 and February 11. The word is out. Level 5 and their allies in the SMSM will do their utmost to put a lid on this. STV however have let the cat out of the bag.

As for the SFA, they have approved a career criminal on the premise that he was wealthy. If they should continue with their arrogant position, Ashley will publicly humiliate them even if King has gone at that point.

King has never been an honourable man. Those who loaned him money to buy shares will not be repaid. He will find a way to line his pockets at their expense. As soon as they loaned him money he could not lose. They had broken concert party regulations. They had breached the 30%. If they took King on he could take them all down with him.

The AGM in 48 hours time is now a sham. Will Taylor, Park and Letham support the re-election of King to preclude the Financial Conduct Authority taking more than a passing interest in their underfunded hostile takeover?

There is also the position of the RST and RF to consider. When King goes, and it’s just a matter of time, are they prepared to loan Murray and Gilligan the soft loan that is required to keep the lights on?

 

Ashley’s End Game

I get the distinct impression that Ashley has several objectives. There has to be a business imperative behind his litigation. I anticipate that should he have his dual ownership fine ruled illegal in the court of session, he will acquire shares to the UEFA limit of 30% and once he has removed King he will appoint two directors to the board. This was his original game plan until it was rudely interrupted by a mendacious rapscallion. After an expensive lesson in court. with three days of senior counsel fees running to circa £72,000, the Scottish Football Social Club won’t be able to come to any gentlemen’s agreement on artificial thresholds.

Those who read Phil Mac’s blogs (I quickly put my hand up) will note that his sources suggest that Ashley is not going to spare the horses in his pursuit of King. Those of you unwilling to have a look inside his Pandora’s box can wait a week until Keith Jackson runs with it. Ashley has now lost patience with King. As his counsel stated in the Court of Session today he would not have invested £750,000  in equity if he had the prescience of a return by King. King is the scourge of the business world. An international pariah. Those well-heeled businessmen that the shyster board predicted would be forming a queue in Edmiston Drive have not materialised. No-one is willing to do business with King; least of all Mike Ashley.

As much as I would like senior SFA executives to be removed after the two day hearing in February, I do not anticipate anyone falling on their sword. Lady Wolffe, in my informed opinion, will come to the conclusion that King should not be a director of any UK plc, which would force the SFA to rescind his membership of their old boy’s club.

The writing is on the wall for King. I envisage a scenario where a call will be placed to George Letham, from Regan, asking what can be done about King.The SFA are being exposed in an unprecedented manner. The costs of defending King are no longer tenable.

Today’s court hearing was instructive in regard to the strategy King’s barrister will deploy in The High Courts of Justice Chancery Division on 9 December. His QC will attempt to have the case thrown out. If this fails he will request a 2-4 day hearing, safe in the knowledge that the earliest hearing would be in March. It’s critically important to King that his current contempt of court conviction is no longer suspended when he enters court on a further contempt charge. However this will not be the case at The Court of Session on 11 February.

There is an end game here that does not include King. If Resolution 10 is blocked, as I expect, King will have to make do with selling his shares at a small profit. As soon as he stops darkening our door, things will improve immeasurably.

 

Another Scoop.

“November 18, 2015 at 11:58 am
I have just been informed, by a very reliable source, that Mr Stevens is doing his best to keep a low profile now that his ‘State Aid’ allegations against CFC have been dismissed as wishful thinking on his part. Questions about his credibility are sure to follow.”

http://news.stv.tv/west-central/1333550-celtic-purchase-lennoxtown-not-corrupt-or-fraudulent-watchdog-says/?utm_source=twitterfeed&utm_medium=twitter.

As you can see, my source was correct. We scooped the report by six days.

Fit & Proper set for review

“By my calculation there are now 6 ongoing cases involving Rangers FC.”

James Doleman, who was at The Court of Session this morning, has offered a Twitter prize for those who can name all six. I can name six. There is the Green/Whyte criminal case; Green’s costs case; Ashley’s interim injunction; King’s contempt of court hearing on 9th December;  a two day Judicial Review of the SFA’s decision to approve a career criminal as ‘fit and proper‘ and a damages suit by  former players who missed out on holiday pay.

If I include the fact that King is currently under licence on a three month’s sentence for contempt of court then I have seven.

As Mr Doleman accurately predicted , today’s hearings were procedural in nature. There were two petitions by counsel acting for Ashley, who were instructed by Brodies LLP. MASH were asking for a judicial review of the SFA decision to approve Dave King  as”fit and proper”  and on his fine from the SFA.

King as respondent was represented by Anderson Strathern. The SFA, as co-respondent, were represented by Burness Paul.

The consensus in court is that today was big win for Mike Ashley. The SFA/King motion for a quick dismissal  was rejected.  There will now be a substantive two-day hearing on 11th February. Lady Wolffe, presiding rejected a motion by the  SFA/King  for preliminary diet in December.

Counsel for Dave King stated that he was “happy to adopt SFA motions.” He continued by requesting for “an end to uncertainty” and ” an expidited hearing.

Counsel for the SFA on Ashley inquired: “what is the standing of a 9% shareholder to challenge an SFA decision? He continued: ” I hardly need to remind you of difficulties Rangers, and Scottish football have faced”  and adds “this uncertainty must end.”  The advocate for the SFA requested a hearing on 11 December where he will move to dismiss Mike Ashley motion. ” There is no need to put it off.

Counsel for MASH, Mr Sanderson, requested that the SFA  “put forward a substantive position.” He continued by informing the court that the SFA was arguing “no jurisdiction” against his motion for judicial review.He argued that the SFA were making “no positive case.”

What is clearly obvious from this morning’s hearings is that the SFA are now inextricably linked to a career criminal whose convictions and misdemeanours will be fully articulated in a two day hearing. Counsel for Ashley will present a damning indictment of King, which will include two contempt of court hearings. It’s evident that the SFA and King colluded in an attempt to set an early hearing, as they were hoping that King will postpone his hearing on 9th December until after this forthcoming two day review. A conviction on the 9th would hole the SFA/King’s case under the water line.

It will be interesting to discover whether King will be able to postpone his trial on the 9th December. Should his counsel request a two day full review, it’s unlikely that it will go to trial prior to the 11th February.

It was also interesting to note that counsel for the SFA suggested that their decision to approve King was to alleviate Rangers financial difficulties. Essentially their position was that he was perceived to be wealthy and that was good enough for the SFA.

The SFA have made a rod for their own back by approving a career criminal as ‘fit and proper.’

 

King’s Omnishambles

“Paul Murray was being disingenuous. He knew all along that the money from Rangers First/RST would be necessary if King was lying. The amalgamation of both to form Rangers First CIC provides us with the fourth bear, who will be buying the shares that King’s consortium have earmarked for them at the AGM.”

The aforementioned quote is from my article The 4th Bear that I published on 17th November. I note that Ibrox Cub reporter Chris Union Jack has today broken the news of the 4th bear. Nice Try Chris but I wrote about it a week ago.

As we approach the AGM, Level 5 are working flat out to create positive stories about the King consortium’s plans. The abysmal accounts have been dismissed as a legacy issue. King’s lies about investment will not be questioned by anyone at the AGM as the microphone will only be passed to those that have been bought by the board via blazers and Auchenhowie cyber pints. One of the board’s staunchest supporter, the SOS’ Sandy Chugg, who asked a question at the EGM in June, will no doubt present himself as the reasonable Rangers fans as he awaits his December court appointment on his alleged incitement and .participation in a riot in Edinburgh’s Grassmarket.

The Rangers Supporters Trust will continue to blame the loss of a NOMAD on the previous regime despite compelling evidence that WH Ireland would step down should career criminal King step up. There is even an excoriating RNS that is on public record, but as this does not suit their pro-King agenda, they have revised the truth.

Meanwhile their fellow ursine friends of the fourth kind, Rangers First, will be playing  the Pan pipes of board harmony as they jockey for position on Rangers First CIC .

The fact that the shyster board require a soft loan from what they risibly describe as an independent group will be lost among the pro King rhetoric. Chris Jack’s colleague, Matt Lindsay, is speculating on the millions to be spent in the January transfer window while blissfully ignoring the fact that £2.5m is required to keep the lights on from The Bank of Rangers – a.k.a.Rangers First CIC. There is a higher probability of the sale of Martyn Waghorn than any additions to the squad. Mr Warburton will be donning his festive magic hat to conjure up some more loan signings as he knows that the play-offs are not an option this year. The release of McGregor to Hibs was a mistake. Notwithstanding the fact that the game in hand will probably be translated into three points as the other eight clubs are mere fodder to Rangers and Hibs, the latter have shown much more consistency than last year and are a credible threat.

However, on the day of the AGM we will still be leading The Championship table, a fact that our shyster board  will be quick to remind us of as it’s the only piece of positive news that they have.

Chelsea are away at Spurs on Sunday. As it’s an early kick-off our criminal Chairman will have plenty of time to  check in a Terminal Five for his first class flight to Johannesburg, at the fans expense. I’m certain no-one would begrudge him a day of early Xmas shopping on Bond Street and a relaxing spa at The Shard Shangri La. What’s £12,000 between friends?

Of course if King could park his ego this weekend, the smart play would be to remain in Johannesburg. A mystery illness could be conjured up that precluded his travel, which could be extended as grounds for postponement of the hearing on the 9th as King knows something that the press are doing their utmost to suppress – He is currently bound over on a three months contempt of court conviction. He could also duck the remote possibility of a rogue shareholder with a single vote asking him a difficult question.

But then when could King ever park his ego? Ashley’s successful injunction threw a spanner in the works as I envisaged a two-stage AGM/EGM shares heist. Ashley/Easdales/Proxy will vote against Resolution 10 as it dilutes their holding by a third. It is also my firm conviction that they cannot strip the 10.4% holding of their voting rights prior to resolutions being passed at a General Meeting. Any defeat of resolution ten would have been revisited in January had they been able to strip Ashley of his shares. However that door is now closed to them.

I have arrived at the unequivocal conclusion that King’s board are an omnishambles.