Described by Ibrox chief Graham Wallace as ‘pre-arranged’ as part of the club’s financial and organisational restructuring, Rangers struck a deal earlier this week with director Sandy Easdale and single biggest shareholder Laxey Partners for loans of £500,000 and £1 million respectively, amid fears denied by the club that players and staff were not going to be paid on time.
A statement from a club spokesman said that the loan would provide ‘working capital for the Company’.
Last year, Brian Stockbridge, the club’s former finance director, claimed Rangers would only have £1 million remaining in the bank by April despite raising £22 million from an IPO in December of 2012.
But the £1 million loan from Laxey is believed to come with 15 per cent APR tacked on, as well as being secured against Edmiston House and the Albion car park adjacent to Ibrox stadium - while King had offered the same loan with no interest.
The cash is due to be repaid on Septemnber 1st, but it is thought Laxey Partners can opt to take repayment in the form of new shares, with the approval of club shareholders.
And King told The Sun that he was stunned by Wallace’s claims that he had been in contact with the South African-based tycoon, saying: “I can’t believe Mr Wallace would have said that. Mr Wallace has never spoken to me or even attempted to communicate with me in any form whatsoever.”
The Sun are also reporting that King is ready to reveal details of his dealings with the Rangers hierarchy - mainly that he had offered an interest-free loan and discussed it with Sandy Easdale.
Wallace claimed in an interview earlier this week that he was in talks with King over potential investment in the club, but a joint statement released by fans around the same time condemned the terms of the loan deals agreed with Laxey Partners and Easdale.
Club adviser Daniel Stewart and Company plc approved the Laxey deal as ‘fair and reasonable’, and Wallace told fans not to be concerned about the borrowing which was ‘always part of the plan’.
Wallace’s revamp of the club is well under way, and Rangers’ mid-year financial results - due out next month - are expected to show a big improvement on last year’s £14 million loss in just over a year, with losses significantly reduced.