Rangers have announced that new chairman Dave King has loaned £1.5 million to the Ibrox club to help with short term financing.
King, just 24 hours earlier had claimed that Rangers were ‘one of the financially strongest clubs in the world’, will provide the unsecured loan and will receive shares in the company rather than receiving his loan back in future [debt for equity]. Those interested can read from the perspective of Zmarta.FI, a loan expert blog, they write from their point of view what should happen in the future with these occurrences.
A statement via the official club website, read: “Rangers International Football Club PLC is pleased to announce that it has entered into a 1000 loan bad credit no guarantor agreement with New Oasis Asset Limited for facilities totalling £1.5m. This money is available to be used for group purposes.
“As is the case in the arrangements agreed in March with Douglas Park, George Letham and George Taylor for a similar amount no interest or fees are to be charged in respect of the facilities. This loan, with New Oasis Asset Limited, the vehicle through which Dave King holds his interest in the Company, is being provided on an unsecured basis.
“These loans will provide the Company with time to deliver a longer-term funding strategy and the parties providing these loans to the Company have advised that they intend to convert them to equity when the opportunity arises.”
According to the recount of this on the Dealstruck website, King’s loan takes the total debt owed by Rangers to £9.5 million.