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Oldco Rangers move into liquidation
Published : 31 Oct 2012 20:47:43
Oldco Rangers have formally entered liquidation after the move was approved by a senior judge.
Insolvency firm BDO has been appointed to wind up the company, now known as RFC 2012 plc.
The move brings to an end the period of administration by Duff and Phelps, which began in February this year. The Glasgow club went into administration after the taxman lodged a petition over the non-payment of tax to the tune of millions of pounds.
Liquidation was given the green light by judge Lord Hodge at the Court of Session in Edinburgh, after a day-long hearing on the issue.
Duff and Phelps had gone to the court seeking an order to end the firm's time as administrators and asking for the oldco to be handed to liquidators. The court heard that the move, opposed at this stage by lawyers Collyer Bristow, would involve the handover to liquidators of Â£1.7million in cash and other assets.
The club was consigned to liquidation in June when HM Revenue and Customs (HMRC), who are owed up to Â£94 million, rejected an offer to creditors.
Duff and Phelps sold the business and assets of Rangers to a consortium fronted by Charles Green for Â£5.5 million when the Company Voluntary Arrangement was rejected. The sale relaunched Rangers on the pitch while the original company, renamed RFC 2012, headed for liquidation.
Earlier this month, Duff and Phelps revealed that creditors had approved the end of the administration process. It is understood that Malcolm Cohen and James Stephen of BDO have now been appointed joint interim liquidators. Part of their role will be to work to recover funds for creditors.
Duff and Phelps previously stated that liquidation will not affect the current operations of The Rangers Football Club in any way. The new club, which is in the Irn-Bru Third Division this season, is a "completely separate entity".
Paul Clark, joint administrator, said in a statement: "As administrators, our primary function was to keep the business going and effect a sale of the Club in order that it could continue, while maximizing the return for the creditors. These objectives were achieved. It will now fall to the liquidators to realise any further potential funds that may go to creditors. We have worked closely with the liquidators over the last few months to ensure an orderly transition."