Rangers shareholders back '˜Resolution 11' to swap debt for shares

Rangers shareholders have backed a special resolution that will allow Dave King's board to finally convert loans into bigger stakes in the club.

Rangers shareholders voted to back Resolution 11. Picture: John Devlin

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The club’s chairman and fellow investors such as Donald Park, George Letham and George Taylor - dubbed the Three Bears - have handed over around £16 million in interest-free loans to the Ibrox outfit to ensure they stay afloat, while King has promised to put in another £7 million over the next 18 months.

But they will now be able to swap a large chunk of that debt for shares after winning the right to offer shares to investors without needing to involve the rest of the club’s existing shareholders following a vote at Thursday’s annual general meeting.

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King and his board had twice previously attempted to pass the so-called ‘Resolution 11’ at their last two AGMs but were thwarted by a bloc that included Mike Ashley and the Easdale brothers.

However, King has now been able to pass the motion after Sports Direct tycoon Ashley sold off his nine per cent stake to Rangers fan group Club 1872 and businessman Julian Wolhardt earlier this year.

The resolution was backed by 78.3 per cent of shareholders - a little more than the three-quarter margin required.

It is understood the club now hope to press ahead with a ‘targeted share issue’ early next year, potentially as soon as March.

A statement on the club’s website read: “The board is delighted to see such support from its shareholders. The success on Resolution 11 paves the way for a share issue.”

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