Dave King in Rangers administration warning

FORMER Rangers director Dave King has warned that Rangers could go into administration by Christmas unless Charles Green lowers his asking price and sells up.

By The Newsroom Thursday, 8th August 2013, 11:01 am

Former Rangers director Dave King says the club could be headed for administration. Picture: SNS

The South African based businessman is looking to acquire a controlling stake but has branded the current share asking price ‘absurd’.

Former Rangers chief executive Charles Green, who is now acting as a consultant for the club, has told minority shareholder Jim McColl that his consortium will sell its 28% stake in the club if given £14m by Friday.

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Green’s consortium bought the assets of Rangers following its liquidation and formed a newco club.

King’s personal assets have been unfrozen after he reached agreement with the South African tax authorities although he still faces criminal charges.

He told the Mail: “I am absolutely 100 per cent certain that none of these factors are an issue at the present moment.

“The greater obstacle remains Green’s insistence on seeking 70p for shares that are currently just worth over half that on the stock market.

“The current regime have made offers of shares to me at various stages and various levels.

“But the amounts on offer are insufficient to excercise any real control - and I have regarded the share price they have been asking as absurd.

“I am happy to be part of a recapitilisation of the club. But my preference would be to be issued with new shares. And the money I provide must go into the club.

“And it must be properly controlled and properly managed.

“I don’t see myself or anyone else putting money in to pay these guys off.”

King warned that the club was close to running out of money.

He said: “There is an invevitibility to the fact that the people currently operating Rangers are going to run out of cash.

“The club raised £22m via an IPO (Initial Public Offering) and that was whittled down to virtually nothing.

“I think it was down to £5m or £6m in the bank and has now got a boost via season ticket sales.

“But the way directors are spending money on Green’s consultancy fees and other things, I don’t think they will make Christmas.

“The question then is: when they go to the markets again, are they going to find other investors willing to put more money into the club?

“We had all these guys come in and buy into Green’s business plan. They paid 70p a share and witnessed those shares lose value very, very quickly.

“They are not going to increase their holding and other inverstors will be very, very wary.

“So if they get to the point where they are close to administration again by Christmas and the season ticket money is gone and they have the same high overheads and are running out of cash , they will be faced with administration again.

“And what that will mean is all the shareholders including Green - losing all their money. In which case, they will have to be realistic about their demands at that stage.

“The club is being run on the basis of protecting shareholder value - particuarly by those who paid nothing for the shares and want to make something.

“It’s a question of Green making £2m, £3m or whatever.

“He regards that as his compensation for what he thinks he has achieved.

“But the way it’s going now he could end up with nothing.