RANGERS will still be able to achieve long-term financial stability when Dave King takes over - despite the Ibrox club's shares being suspended.

 

That was the prediction by financial expert Neil Patey today in the wake of WH Ireland stepping down as the nominated financial advisor.

An official Rangers statement to the AIM Stock Exchange at 4pm yesterday afternoon confirmed the Nomad had resigned.

The SPFL Championship club now has 30 days to appoint a replacement - or it faces having its shares delisted by AIM.

King, who is set to take control of his boyhood heroes at an EGM at 11am tomorrow morning, announced last night that he will delay his appointment as a director.

The Glasgow-born South Africa-based businessman has to pass AIM and SFA "fit and proper person" tests due to previous convictions for tax offences.

But Patey, a partner at major accountancy firm EY, believes the shares being suspended won't stop the situation at Rangers stabilising.

He said: "There are various reasons for a company to have its shares suspended. It isn't necessarily a bad thing to happen, not in this situation.

"In other circumstances, if there is volatility due to the fact that it was deemed that the company might be trading insolvently or was going to go into administration, it could be negative.

"But here it is being driven by the uncertainty of future ownership and control. It is just trying to get through a period of uncertainty. Then normal market trading can resume.

"They are still listed. They aren't being delisted. They are just stopping trading for a period of time until normal market circumstances return.

"This just gets them through a period of extreme volatility while there is uncertainty over share direction."

Patey added: "The new board coming in includes Dave King and for now we don't know if he can take up his position because he is subject to fit and proper person rules.

"Part of the uncertainty surrounds the question: 'Who is going to be running this company next week?' Again, they are not normal trading conditions. There is significant uncertainty there.

"You could get a position where the EGM votes out the existing board, and this is an extreme scenario, and then the FCA (Financial Conduct Authority) turn around and say: 'But Dave King you can't take up a position because you're not fit and proper'.

"This is as much a gut feeling as anything, but if this goes through and Dave King is allowed to appoint Paul Murray and others then it does feel like you are on the verge of getting a long-term period of stability.

"The club is almost back in the Premiership, you have a board that should have the hearts and minds of the fans, Dave King should have the resources to provide financial support. You can imagine a position whereby this puts them on at least a medium-term stable platform."

Patey doesn't feel the suspension of the Rangers shares will prevent the Ibrox club holding a share offering to raise capital in future once King takes control.

He said: "They obviously couldn't have a new share issue as long as the shares are suspended, but share suspensions tend to be quite short-term in nature.

"I couldn't imagine it would last more than a couple of weeks. I would be very surprised if it got in the way of any future share issue. This share suspension should be lifted in a short period of time."