RANGERS have cancelled their controversial £1 million loan agreement with Laxey Partners in favour of a cheaper deal with another shareholder.
Rangers announced via the stock exchange that major shareholder Laxey had transferred the credit facility to George Letham, who had made a public offer to the club in the wake of criticism of the original deal.
Laxey stood to make £150,000 on the six-month loan while a combined £1.5million loan from the hedge fund and football club chairman Sandy Easdale was secured against the Edmiston House and Albion car park properties adjacent to Ibrox Stadium.
But Letham will now loan the club £1 million in return from a smaller premium.
A statement from Rangers’ plc read: “On 24 February 2014, the company announced that it had entered into two secured short term credit facilities for an aggregate amount of up to £1.5 million. These credit facilities were provided by Laxey Partners Ltd to the amount of £1 million and Alexander Easdale to the amount of £500,000.
“Laxey has, pursuant to an agreement entered into today, transferred all rights and obligations in relation to the Laxey Facility to Mr George Letham including all its rights in relation to the standard security granted as security for the Laxey Facility. Mr Letham is a shareholder in the company and a lifelong Rangers fan.
“The Laxey Facility, now transferred by Laxey to Mr George Letham, remains subject to the same terms and conditions with the exception that the premium payment has been reduced to £45,000 and remains payable in shares or cash.”
Letham previously stated that he only wished to receive extra shares in return for his loan.
Quoted on the Rangers Standard website, he said: “It is my intention to convert this interest into shares as I have no wish to take cash out of the club.
“If the club are unable to convert the interest to shares, then any cash sum I received from the loan would be reinvested into the club via a future share issue to further the cause of fan ownership.
“My only motivation in this is to ensure that the club is secure, has as much involvement as possible from those who care about it and that its vital assets remain available to it at all times.”