A hypothetical administration at Sevco

As regular readers will be aware late last year the Sevco High Command discussed the possibility of an insolvency event.

Essentially no options were off the table as they awaited on funds from NOAL as promised by Chairman King.

This was the first time that administration had been discussed in the Blue Room as an option since Laxey Partners were pushing for it in early 2014.

Although the Isle of Man-based hedge fund had a very detailed plan for an Ibrox insolvency event in place they could not get the sufficient support at board level.

Over the last 48 hours, I have learned that the administration option has been further explored by an element of the Sevco High Command.

I have the details of the four insolvency practitioners that have recently been sounded out.

One of the firms has a history with the original Rangers during the reign of Sir David Murray.

One of the others has a double-barrelled name which is redolent of inter-galactic trainspotting.

Two of them were included in this shopping expedition because it was hoped that they would definitely be cheap enough to afford.

A key point of these discussions has been the cost of a planned administration.

When the Sevco High Command reached out to these specialist accountancy firms they were hoping that the price of this professional service would be in the region of £250-£300k.

However, I’m told that they found no takers at that price.

I am steered towards the figure of £500k as the limit of the budget that is available to Sevco for this cost-cutting exercise.

At this stage, these negotiations could be framed within the context of a feasibility study.

Going down this route could serve two purposes for the anti-King faction in the Blue Room.

As well as a way of slashing an unsustainable cost base it could also be used as a dignified putsch against the Johannesburg based chairman.

If the need for an insolvency event could be laid at King’s door then the remaining board might remain in good standing with The People.

I’m sure those fastidious chaps at Campbell Dallas will be thrilled at this news.

For the avoidance of doubt, I have TWO well-placed independent sources for this story.

One day someone might hand me a press release and tell me to call some mystery chap a billionaire.

Until that historic day dawns, I’ll continue to do investigative journalism via this platform.

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