Mon, 19 Aug 2013 | BUSINESS SALE
Dave King, the former Rangers director, has warned that the club could face administration by Christmas. Mr King says the club could enter insolvency again unless Charles Green lowers the asking price and sells up.
Mr Green, the former chief executive to Rangers, is now acting as a consultant for the club, and reportedly told minority shareholder Jim McColl that his consortium would be willing to sell its 28 per cent holding in the club for £14 million by Friday.
In May 2012, Green and the 20-strong consortium purchased the assets of Rangers out of administration in a £8.5 million arrangement, forming a newco club to take the Rangers forward.
Administrators at Duff and Phelps took control of Rangers in February 2012 and sought to make savings exceeding £1 million a month. The administrators were forced to seek a quick sale of the troubled club after being unable to agree cost cutting measures with the club’s players.
Speaking to the Scotsman, Dave King voiced his concerns about the club’s future: “There is an inevitability 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,” he added.
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