In an interview in yesterday’s Scotland on Sunday prospective Rangers owner Charles Green came up with a remarkable justification for loaning the £8.3m he proposes to put into Rangers if a CVA is accepted instead of putting the money in as equity. The loan will be repayable with a healthy interest return for investors.
Green said “The reason it is a loan is because I never wanted the 26,000 existing shareholders diluted and destroyed. If I put all those monies in as equity on the first day, they would have been down to nothing. This is a classic example of where I have spent hours with my advisers and paid them big fees to protect the minority and I am now the bad guy, this crooked guy who is putting a loan in to take 4000 per cent interest on it.”
Rangers 26,000 minority shareholders are unlikely to know what percentage of the club they own, or worry too much if that percentage is diluted, but this ‘concern’ is utilised by Green to justify his return.
We like this guy. I hope he hangs around.