A RANGERS fans group says they succeeded in preventing Ibrox being used as a security in favour of Mike Ashley's Sports Direct by initiating legal action.

 

It has emerged the Rangers Supporters Trust (RST), with the financial backing of the Rangers Fans Fighting Fund (RFFF), submitted a petition to the Court of Session in Edinburgh on Monday seeking an interim interdict to stop the Rangers board from granting security over Ibrox.

A subsequent £10 million loan from Sports Direct to prevent the Rangers business suffering an insolvency, omitted any requirement to have a security over Ibrox - preferring instead to target the Murray Park training ground and other properties.

The Rangers Supporters Trust says the conclusion of discussions between their lawyers and the board's legal team meant the club agreed not to grant security over Ibrox for a period up until the February 17.

The Trust said it believed their actions had a "material impact" in stopping the board from granting security over Ibrox.

A revised deal with Sports Direct omitting Ibrox as a security was agreed late on Monday night according to Paul Shackleton, the club's Alternative Investment Market (AIM) nominated financial adviser, RST said.

This was immediately following the petition submitted to the court, the announcement of which delayed what would have been a necessary interdict hearing in the Court of Session on Tuesday.

"We do not believe that the filing of a notice of intention to grant security over Ibrox was an error and we believe that a fixed security over Ibrox would most likely have been granted to Sports Direct had it not been challenged," said the RST. "We would like to register our disappointment that it was necessary to take legal action to hold this board to their public promises to shareholders and fans."

While £5m will be available to the club as immediate working capital, it will also be used to repay a £3m loan made by the Newcastle United owner last year.

As part of the loan deal, Rangers are also giving Mr Ashley, for the duration of the loan, a further 26% of shares in Rangers Retail Limited, 49% of which was already owned by the English businessman.

"Whilst we are pleased that the immediate danger posed to Ibrox has been averted, we share the anger of other fans at the latest act of corporate piracy perpetrated by the current Rangers directors," said RST.

"By accepting this deal with Sports Direct, they have plunged our club into an unnecessary level of debt and, by pawning off further revenue streams including shirt sponsorship, have limited our ability to repay that debt.

"They have done this in their own interests and those of Mike Ashley. David Somers, Derek Llambias, James Easdale and Barry Leach have, in our opinion, neglected their duties to the PLC they are meant to represent."

The RST said it was "disappointed" that it was not able to secure the extension of a commitment over the Ibrox security until the date of the upcoming EGM, "as this now leaves a short period of time in which the board could grant security over Ibrox before they are hopefully removed".

The RST added: "This is particularly concerning given the announcement yesterday that a further period of due diligence is required for the second £5m tranche of debt that the board has decided to saddle the club with."