The board has proposed a special resolution at the club’s annual general meeting to offer shares to investors without needing to involve all existing shareholders.
The move is designed to provide much-needed cash and also dilute the influence of shareholder and Sports Direct founder Mike Ashley, who chairman Dave King accused of “bullying” members of the board.
The resolution needs 75 per cent support and a similar vote fell just short last year. Club secretary James Blair told the AGM on Friday morning that the results of all resolutions were not expected until early next week.
King revealed that Ashley and former directors James and Sandy Easdale had formed a bloc in a bid to oppose the plan.
The South Africa-based businessman added that investors had pledged to turn loans into equity if the special resolution is passed. The club has received about £13million in loans from shareholders including King.
King said: “The last year has seen continuing attempts by Mike Ashley/Sports Direct to bully the company’s directors by suing them in a personal capacity.
“The present board comprises supporters who signed up for this challenge and who are not intimidated in the slightest by such bullies.”
A senior judge at the High Court in London branded Sports Direct’s attempt to have King jailed for contempt of court as “designed to intimidate” following a hearing over an alleged breach of confidentiality in January. The sportswear firm later dropped the case.