Wednesday 12 November 2014 15:46, UK
Newcastle owner Mike Ashley has provided Rangers with another loan just weeks after putting £2m into the financially-troubled club.
Ashley, who owns almost 9% of the Scottish League One champions through his holding company MASH Holdings, has made available another £1m interest free loan for the club who continue to struggle off the field due to a drop in attendances this season.
And it has been announced that the Sports Direct owner has given up the naming rights to Ibrox Stadium, which he bought for £1 from previous owner Charles Green in 2012, after signing a new marketing agreement with Rangers.
In a statement to the Stock Exchange, the club said: "The Board of Rangers announces that MASH Holdings Limited ("MASH") has agreed to increase the £2m credit facility (the "Facility") announced on 27 October with The Rangers Football Club Limited ("RFCL").
"MASH shall make available the additional sum of £1 million for drawdown by the Company on 26 November 2014. All other terms remain the same.
The Directors have begun a cost cutting exercise, but further working capital in addition to the Facility will be needed before the end of the year.
"During the Autumn, the Club has suffered from lower than expected match attendance which has exacerbated the financial condition of the business. The Directors have begun a cost cutting exercise, but further working capital in addition to the Facility will be needed before the end of the year.
"MASH is a shareholder in the Company holding 8.92% of the voting rights in the Company. MASH also has an indirect holding in Rangers Retail Limited, a 51% owned subsidiary of RFCL. MASH is a Related Party under the AIM Rules and accordingly the Facility is a Related Party Transaction pursuant to AIM Rule 13.
"The Board discussed offers of finance in detail with two different potential funders over a period of time and also had discussions with an additional potential funder who expressed interest at the end of the period of the Board's discussions with the two original potential funders.
"Following such discussions, the Independent Directors comprising David Somers, Norman Crighton and James Easdale ("Independent Directors") narrowed down the immediately available funding options to two proposals, being those which were able to provide proof of immediately available and uncommitted funds and proof of the identity of the funders.
"As such the Independent Directors identified the two proposals that were, in their opinion, capable of immediate delivery. Having assessed these two proposals, the Independent Directors also consulted with major shareholders holding a majority of the voting rights in the Company.
"Following such shareholder consultations and with the support of such shareholders, the Board resolved to enter into the Facility. The Independent Directors, consider, having consulted with Daniel Stewart its nominated adviser, that the terms of the Facility are fair and reasonable insofar as shareholders of the Company are concerned.
"The Independent Directors would like to thank all the individuals who showed an interest in helping the Company."
The Rangers Board welcomes this visible demonstration of the Sports Direct support and long term commitment to Rangers.
