Craig Whyte has edged closer to a long-awaited takeover of Rangers after being given the green-light to push ahead with his buy-out bid by Lloyds Banking Group.
The bank has come to an agreement over the club's debt - which stood at £27.1million in June and is expected to be slashed to around £21million when Rangers' interim results are announced - paving the way for the Scottish tycoon to complete his takeover of the Scottish champions.
There was still an air of caution surrounding the deal tonight as Whyte's team prepared to examine the details of the agreement before he decides he is satisfied with the terms and signs off the paperwork.
However, it would appear progress has been made as a result of today's developments.
A source close to the deal revealed: ‘An agreement has been reached between Lloyds Banking Group and Craig Whyte.
‘The debt is no longer an obstacle or an issue.’
The next step would be for Whyte to conclude terms with current owner David Murray and for a formal offer for Murray International Holdings' shares to be submitted.
Whyte will take over 75% of Murray's shareholding, with London-based property developer Andrew Ellis becoming a 25% partner, once the buy-out is rubber-stamped by the current owner.
The takeover appeared to be hanging in balance earlier in the week after reports suggested the bank's demands for an 'exit payment' of more than £1million was a stumbling block.
However, Lloyds responded by denying the existence of any exit or redemption fee.
Whyte, who made his money as a venture capitalist and is now based in London, confirmed in a statement to the stock exchange back in November that he was considering making an offer for Rangers and was in talks with Murray International Holdings.
If he succeeds with his buy-out of the club, a sum of around £25million could be made available over five years for investment in team development, as well as the club's debt being paid off.
Manager Walter Smith, who will quit the Scottish champions at the end of the season and will be replaced by his assistant Ally McCoist, met with Whyte for the first time earlier this month.
