The Daily Mail revealed on Thursday that the cash-strapped Ibrox club are in talks with directors Sandy and James Easdale and hedge fund Laxey Partners over a £1.5million loan to plug a short-term cash crisis.
The Rangers board continue to resist the persistent attempts of former director Dave King to invest working capital via a new share issue after the South African-based businessman rated the cash reserves at Ibrox as ‘critical’.
Cheif executive Wallace is midway through a 120-day review designed to cut losses of £1m
a month. And on Thursday he spoke out as he launched ‘Ready To Listen’, a new initiative designed to engage with a disgruntled and increasingly concerned fan base ahead of season ticket renewals.
‘It’s important to say that the board, myself, the executive team are working very hard to rebuild the club,’ said Wallace.
‘We are midway through our 120-day review in terms of every area of the business. But what I can categorically say to all Rangers fans worldwide is that there is no threat of a second administration.
‘We are working our way through the business in a very logical and organised fashion.
‘Sometimes it’s difficult to come out and rebut every story in terms of potential administration. But let me put that to bed once and for all. We are absolutely focused on the long-term sustainability and success of Rangers.’
A statement to the stock market confirmed talks over finalising the £1.5m loan were continuing in London. It would be repaid in a year’s time via the issue of new shares and is seen as key to bridging a funding shortfall first identified by former financial director Brian Stockbridge.
Questions still remain, however, about the long-term sustainability of Rangers. Yet, despite the necessary short-term funding, Wallace says his review is firmly on track.
Sportsmail understands the chief executive is considering raising more cash via a membership scheme which would see supporters paying in return for privileges and a say in how the club is run.
The question will be part of the ‘Ready to Listen’ survey as directors desperately attempt to persuade worried supporters to renew their season tickets.
‘We have to put together an environment of trust,’ Wallace acknowledged. ‘Trust from the fans, trust from the shareholders that the executive team, the board and myself are doing the right things.
‘Fans are absolutely key to that. Without fans the club does not exist.
‘We absolutely need to have their engagement, we need to have their support and this is a first step forward in helping the club understand what matters to them.'