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Clark optimistic over Rangers CVA
Published : 29 May 2012 11:17:08
Rangers administrator Paul Clark is 'certainly hopeful' of a positive outcome of a Company Voluntary Arrangement despite being unable to confirm details of the money on offer.
Charles Green's prospective ownership consortium has pledged £8.5million for creditors with more money due from transfer fees. However, there are a number of uncertainties including litigation over Craig Whyte's takeover deal and the outcome of a tax tribunal, which could send the club's debt above £134million.
Rangers are due to publish their CVA proposal on Tuesday, but a pence-in-the-pound figure is impossible to calculate. Clark told BBC Radio Scotland: "I can't give an absolute confirmation of the amount, the structure of the deal is sufficiently complex that we're not able to give a finite distribution."
He added: "We've received, or we will receive an £8.5million contribution from the Green consortium.
"To add to that we will have the proceeds of litigation that are ongoing in various aspects, and also into the same pot we have outstanding player transfer fees.
"There will then be certain deductions for the cost of administering a CVA and then also the final moving piece is the fact that there is still uncertainty over the creditors' claim because we still await the final result of the big tax case.
"This won't prevent the creditors voting on the 14th of June but it does mean that they won't know for certain what the distribution will be. What we have constructed is the best outcome for creditors."
Both investment firm Ticketus, who are owed £26.7million, and Her Majesty's Revenue and Customs, who are due about £14million but possibly many times more, could block the deal.
Clark said: "We've been very closely discussing the issues with Ticketus and HMRC throughout the whole of the administration process but particularly over the last few weeks as it became apparent that a CVA was becoming ever closer, so we kept them fully informed and confirmed to them that the CVA represents the best deal for the creditors and it's for them really to cast their vote on 14th June but we're certainly hopeful of a positive outcome."
Clark confirmed Green had a dual contract to allow him to push for a 'newco' purchase of the club's assets should the CVA fail. If creditors vote to accept the deal on June 14, the club could come out of administration on July 12, after a 28-day cooling-off period.