Rangers cancel Laxey loan deal in favour of lower premium

Rangers have cancelled their controversial £1m loan agreement with Laxey Partners in favour of a cheaper deal with another shareholder.

Laxey have 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.

Hedge fund Laxey stood to make £150,000 in either interest or shares, while the payment drops to £45,000 with Letham.

The loan remains secured against Edmiston House and Albion car park.

Football club chairman Sandy Easdale is providing an interest-free loan of £500,000, also secured against the properties adjacent to Ibrox Stadium.

When the original deal was announced in February, Rangers' three main fans' groups united to express concern about the "unduly onerous" terms.

Rangers say the borrowed cash will be used for working capital over the coming months, with chief executive Graham Wallace insisting there is no threat of a second administration. for the League One champions.

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."