More trouble for Ibrox board
Rangers shares suspended as WH Ireland quits as adviser
The announcement, just 48 hours before Friday’s extraordinary general meeting, is another blow to the beleaguered board which faces being ousted and replaced by three new directors.
In a statement, the club said its nominated adviser does not believe that it can satisfy the obligations required by the London Stock Exchange.
“The directors are disappointed that this event has had to take place despite the considerable efforts they have made over the last few weeks and months against the backdrop of the general meeting requisition.”
AIM rules say that if a company does not appoint a new broker within one month, trading of the shares on the market will be permanently cancelled.
This latest development gives rebel shareholder Dave King an even greater chance of taking control. The resignation of the adviser follows similar decision by the chairman David Somers and fellow director James Easdale.
Speculation persists that in spite of plans to proceed with Friday’s vote Derek Llambias, chief executive, and finance director Barry Leach will resign ahead of the meeting.
There have also been suggestions that Sports Direct may withhold the second tranche of a £10m loan which may jeopardise the club’s ability to continue trading.
The full statement says:
“The Company has been informed that its Nominated Adviser does not believe that it can satisfy the London Stock Exchange in relation to its NOMAD obligations in respect of the appropriateness of the Company’s securities to be admitted to AIM, and therefore the NOMAD has resigned as Nominated Adviser to Rangers with immediate effect. Accordingly Rule 1 of the AIM rules for Companies will apply, and trading in the Company’s AIM securities will be suspended with immediate effect. If the Company is not able to restore trading within one month, admission of the Company’s securities to AIM will be cancelled.
“If requested during the suspension period WH Ireland is willing to assist the Company to implement the necessary changes for WH Ireland or another Nomad to become satisfied as to the Company’s appropriateness for AIM. If a Nominated adviser is appointed it may apply to the London Stock Exchange on behalf of the Company for trading to be restored.
“The Directors are disappointed that this event has had to take place despite the considerable efforts they have made over the last few weeks and months against the backdrop of the general meeting requisition and wish also to record their appreciation to their outgoing NOMAD for all it has done for the Club.”