Thursday 2 April 2015 22:47, UK
Former Rangers football board chairman Sandy Easdale is considering legal action over the club's imminent delisting from the Stock Exchange with the past and present boards from Ibrox making claim and counter claim over where the problems lie.
The club announced on Thursday that they have failed to appoint a new nominated advisor (Nomad) and will delist from the Alternative Investment Market (AIM) on Tuesday.
However, interim chairman Paul Murray has released a statement to the club’s website blaming the mismanagement of previous regimes for the delisting and said arrangements had been made for a temporary trading platform, operating by Tuesday.
Former Nomad WH Ireland resigned on March 4 when it became apparent that prospective chairman Dave King and his allies were going to oust the board at Ibrox and assume control of the Glasgow giants.
In a statement issued on Thursday, the club said: “The new board of directors has been working hard, to a tight timescale, with a prospective new Nomad to complete an appointment. Unfortunately, it has become apparent that this will not be possible.”
Easdale, himself a shareholder who still controls 20 per cent of voting rights, confirmed in an earlier statement that he was considering legal action and then told Sky Sports News HQ that he believed King and interim chairman Paul Murray had misled other shareholders.
He said: “I think we have been misled on several occasions with Dave King and Paul Murray saying that they had a Nomad and that it was a certainty that the club would keep its listing.
“I think categorically we have been misled. Dave said in several interviews that he had a Nomad and he felt comfortable that he would be found fit and proper and the company would still be listed which today I would’ve hoped would have been the case.”
The club remain in talks over securing an alternative trading platform, reporting positive talks with the ISDX platform where oldco Rangers' shares were traded prior to liquidation.
The statement released also said that there was no reason to suggest that delisting would “adversely impact on the value of the company's shares or on the company's financial condition or prospects.”
Trading in shares has been suspended since last month but a prospective Nomad carried out due diligence and concluded that existing and proposed new directors would be “Fit and Proper”.
In their statement, the Rangers board told the Alternative Investment Market that the move to delist was “simply the result of the well-documented failings in corporate governance and management of those who previously controlled the company”.
However, Easdale denied this and agreed that the threat of legal action was the last thing that Rangers needed at this time.
He said: “The previous board made it public that the club could suffer delisting if the requisitioners went ahead and especially with Dave heading it up.
“I think they had a chance to keep it listed if Dave would’ve stepped aside. But I’m not sure why they are using that tact. Up until the other board was dismissed it was still a listed company and potentially could trade shares up until WH Ireland resigned.
“I don’t think we would be taking Rangers to task. Our group has more than a personal basis with the individuals who misled the shareholders in thinking the shares would still be on a market.”
When asked on March 6 about the prospect of Rangers being on the Stock Exchange, King said: “For the rebuilding process of Rangers, my personal preference would be for it to be not listed.
“But it is listed and there are shareholders who have been supportive of this change, of the requisitions, who are in fact institutions who can only invest in public companies and I think out of respect for them and the support it’s important that we keep the public listing. But from Rangers Football Club’s point of view, it is completely unimportant.”
Earlier, a representative for Easdale said: "I can confirm that the Easdale grouping is considering legal action.
“This cessation of listing is a blow to all serious shareholders and is in direct contradiction to the promises Mr Dave King made in the lead up to the EGM regarding appointment of a Nomad.
"Today's statement from Rangers is a masterpiece in obfuscation, presumably with the intention of disguising the fact that the shares will trade at a massive discount."
A club spokesman responded to Easdale's comments.
He said: “Sandy seems to be forgetting the results of the general meeting. He and the other directors were routed.
“Shareholders voted overwhelmingly to get rid of them. This was because of their failure to take Rangers forward and meet fan expectation.
“Rangers has suffered from gross mismanagement since the IPO and during that spell the Easdale brothers were on the board.
“Do they really expect supporters to believe they weren’t in any way responsible for the problems the new board has inherited?
“I’m sorry, but I thought April 1 was yesterday.”
Interim chairman Paul Murray also released a statement on the Rangers website, once again blaming the mismanagement of previous regimes at Ibrox for the club’s delisting from AIM.
He said: “We tried everything within our power to have the suspension lifted but it was clear that we would have to pay a price for years of poor corporate governance and financial mismanagement since the IPO.
“The delisting is down solely to the actions and conduct of past regimes.
“You could say the behaviour of previous directors has poisoned the well with AIM but even so we might have expected a little more understanding from certain quarters. However, I must point out that delisting will have no effect on our overall financial strategy.
“The investments we expect will still be made and Rangers will be rebuilt on schedule. Be certain that this delisting, which is down entirely to the actions of previous Boards, will have no bearing on future investment.
“Also, we are putting in place an extremely credible share-dealing facility which will enable shareholders to buy and sell their shares. I understand there will be some shareholders unhappy with this outcome but I am sure the vast majority of shareholders will be satisfied.
“One of the platforms keen to take us is ISDX. This is an exchange that Rangers used to trade on and it is also a trading platform for Arsenal.
“We will have a full platform set up by the end of May but have made arrangements to have a temporary facility operating by next Tuesday morning.
“It is unfortunate our intended Nomad, who had confirmed to us that they cleared all of the individuals concerned as fit and proper, could not proceed after having conducted due diligence on the company but I want to stress again that this will not hinder our plans."
