RANGERS supporters' season ticket money could be used to pay off a £1.5 million emergency loan, despite a cut-price counter-offer being agreed.

Rangers International Football Club plc confirmed they had walked away from part of the controversial loan deal worth £1m offered by Isle of Man fund mangers Laxey Partners in favour of a credit facility provided by wealthy shareholder George Letham. The rest of the emergency loan, which remains in place, was put up by shareholder Sandy Easdale who is receiving no interest or fee.

Laxey and Mr Easdale were granted a security over the Albion car park and Edmiston House in return for the loan.

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Former director Dave King, who has set out plans to invest up to £50m in the club, believes that confirmed the knowledge it was a high-risk arrangement and told the board at a meeting he believed season ticket money should be ring-fenced.

A company source confirmed that terms and conditions of the original loan agreement remained, meaning repayments will come from season-ticket money or through a new fund-raising share issue.

The club plc said the £45,000 interest payments of the loan "remains payable in shares or cash".

A share issue would require shareholder backing at an AGM. An initial public offering championed by Green raised around £22m in December 2012.

Mr Letham previously said he intended to convert the interest into shares "as I have no wish to take cash out of the club".