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Easdales and key investor line up £1.5m bailout for Rangers

The Easdale brothers and Rangers' biggest single shareholder are prepared to loan the Scottish League One club up to £1.5 million.

The move by Sandy Easdale, chair of the football board, James Easdale, a director of the plc board, and Laxey Partners would be part of chief executive Graham Wallace's attempts to rebalance the business.

City sources revealed yesterday that agreement has yet to be finalised on the proposal as talks continue.

However, it has been established the money would be repaid in the form of shares rather than cash at some point in the next 12 months.

Rangers' cash reserves are understood to be diminishing, and the next significant income stream is not due until Rangers fans renew their season tickets in the summer.

Mr Wallace, who is in the midst of a 120-day review of every aspect of Rangers' business, has already admitted that cost-cutting is required because outgoings are greater than revenues.

Despite continuing rumours over an imminent cash-flow problem at Ibrox, the former Manchester City chief executive is adamant that there are enough funds to continue trading.

However, significant savings have yet to be made with no players having left during last month's transfer window.

Some Rangers directors were in London yesterday meeting shareholders and any lending of funds would be seen as a vote of confidence in Mr Wallace.

Dave King, the former director who previously invested £20m in the club, has made it clear that he wishes to re-invest and lead the funding round of a new share issue.

This would, though, dilute the holdings of the current shareholders unless they also put in more money.

Mr King has also expressed his concern that if costs are cut to meet Rangers' current income levels, then the club will take years to return to its former status, and he would prefer fresh funding to be sought now to allow investment to strengthen the team and the infrastructure.

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