Rangers First seeks fan verdict on loan proposal

Rangers supporters will vote on plans to hand the club a £500,000 interest-free loan.

Fan-ownership campaigners Rangers First will poll its members on the proposals before going ahead with a cash transfer.

RF officials hope the loan - which is also unsecured - will be converted into shares once the club regains its stock market listing.

And on top of the fans' cash, chairman Dave King has personally vowed to match that sum with another loan from his own pocket.

Rangers announced in their annual report in November that they would require £2.5million to see the club through to the end of the season, with "further funding'' also needed next term.

A group of investors - including King and allies Douglas Park, George Letham, George Taylor, John Bennett, Barry Scott and Andy Ross - recently handed over a £6.5million loan to pay off a £5million sum borrowed from Mike Ashley's Sports Direct firm and to provide the Championship outfit with working capital.

Now RF, which owns a 3.52 per cent stake in Rangers, says it wants to lend a hand while also giving supporters a greater say in the running of the club.

In a letter sent to members, the group said: "Rangers First is the eighth largest shareholder in the club and we remain committed to increasing your shareholding in the club. We are always looking at ways in which to build our holding while also contributing to the rebuilding of our club and we have such an opportunity to present for members' approval today.

"We believe you, as our members, want to help to drive the push for promotion and get our team and club back to where we belong.

"As you know loans have been provided to the club and the Rangers First board also want to give our members the option to contribute. We are therefore asking you to decide whether or not to join with Dave King, the Three Bears and others and offer the club a loan of half a million pounds. If the necessary approvals are obtained, then the intention is that the loan will be converted to shares which will increase the shares held by Rangers supporters in the club.

"The loan would be on the same terms as Dave King and the Three Bears and would be made available in the middle of January with drawdowns through to the end of the season. The loan will be interest free, unsecured and will run until a share or rights issue can take place with a longstop date for repayment of two years. The club would also have the option of being able to repay it at any time in that period.

"Your board has had much discussion and debate regarding this and believes that this may be one of the best ways for Rangers First to help the club continue to rebuild, develop and expand. This is a key issue on which RF asks its members to decide, we are therefore asking members to approve a loan of half a million pounds to Rangers International Football Club PLC."

RF members have until January 10 to cast their vote, with 75 per cent approval required for the motion to be passed.