LONDON (Reuters) - Scotland's Rangers football club, battling to raise cash to stay afloat, said on Monday it was in talks to agree new funding which could use the club's Ibrox stadium as security.
Rangers, the 54-times Scottish champions who had to reform as a fourth-tier club in 2012 after being wound up, said it was in talks with two of its stakeholders about raising funds to bolster the team, and that part of a deal could include using Ibrox as protection.
"Such a decision would not be taken lightly," said the club.
According to media reports, two stakeholders - Sports Direct founder and Newcastle United owner Mike Ashley, and a wealthy consortium called the Three Bears - are separately ready to provide 10 million pound loans, with Ashley reported to want Ibrox as protection.
Rangers, which have also recently rejected two takeover deals, said it continued to need further, urgent short-term funding but that at the current time its assets, cash flow and business did not support a significant financing, leaving the stadium deal as an increasingly viable option.
It said it could also not issue shares in the club in the timeframe required.
In a separate statement, former Rangers director Dave King, whose New Oasis Asset Management vehicle owns almost 15 percent of the club, called for a general meeting to put forward resolutions for the removal of several directors.
King wants Chairman David Somers, CEO Derek Llambias, Finance Chief Barry Leach and James Easdale to be removed and himself and two others to be appointed directors. Rangers said it intended to have the notice withdrawn to avoid extra costs.
"In the meantime the directors will not be distracted from the more important matter of securing the future of the business," it said.