LONDON (Alliance News) - Rangers International Football Club PLC on Monday said it is in talks with two shareholders over a possible financing package which may result in its Ibrox Stadium being used at security, something the club had previously resisted, as it also confirmed shareholder Dave King has called for a general meeting to vote on the removal of the club's current board.
The club noted the reports last week that Mike Ashley, the founder of Sports Direct International PLC and an influential shareholder in the club, has offered up to GBP10 million in funding to secure Rangers' finances, in return for Ibrox and the Murray Park training ground being used as security.
Rangers said it is currently in talks with two parties who are currently stakeholders. Rangers said the discussions involve "a significant amount of capital being available to the business on a long-term basis in order to enhance the squad which the directors believe is necessary."
It said a consequence of it having to secure funding of this level is that it "may be necessary to use Ibrox stadium as security". Last year, the club had said it would not use its stadium as security for any financing deal, and the news that Ashley had demanded this resulted in heavy criticism from fans and supporters' organisations.
In addition to the financing talks, the club said King, a former a director of the club, has issued a notice calling for a general meeting to be held to vote on the removal of the club's entire board.
King, who bought a 14.6% stake in the club earlier this month, is calling for the removal of Chairman David Somers, Chief Executive Derek Llambias, Finance Director Barry Leach and Non-Executive Director James Easdale.
His notice calls for the directors to be replaced by himself, Paul Murray and John Gilligan.
Rangers said it is currently in the process of verifying whether the notice issued by King is valid. If found to be valid, the club said it will seek to have the notice withdrawn "in order to avoid the cost and disruption of an ad hoc general meeting". Should it fail to have the notice withdrawn, the board it recommending shareholders vote against the proposals.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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