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Oldco Rangers nears liquidation

17 Oct 2012 16:47:48

Oldco Rangers nears liquidation

Oldco Rangers moved a significant step closer to its inevitable liquidation when creditors approved the end of the administration process, according to Duff and Phelps.

The administrators have instructed lawyers to make a formal application to place the company into liquidation in the Court of Session.

The club was consigned to liquidation in June when Her Majesty's Revenue and Customs, who are owed up to £94million, rejected an offer to creditors.

That prompted Charles Green's Sevco Scotland firm to buy the club's assets and business for £5.5million and relaunch Rangers on the pitch while the original company, which was renamed RFC 2012, headed for liquidation.

Paul Clark, of Duff and Phelps, said in a statement: "Creditors have today given their approval for the administrators to bring the administration process to an end and to place the company into liquidation. As a result, we as administrators have instructed our legal team to prepare the necessary application for lodging in the Court of Session as a matter of urgency.

"Should the application be approved, then Malcolm Cohen and James Bernard Stephen of BDO will be appointed liquidators of RFC 2012 plc, and will undertake the process of liquidation of the 'oldco' company and the continued recovery of funds for creditors. This will not affect the current operations of The Rangers Football Club in any way as it is a completely separate entity."

The liquidators, whose identity was already known, will have the power to investigate the recent financial affairs of the company and pursue legal claims, such as one against law firm Collyer Bristow, who acted for former owner Craig Whyte.

Meanwhile, Duff and Phelps defended their performance despite failing to prevent the liquidation. The London-based firm were also investigated over claims of conflict of interest relating to their previous working relationship with Whyte before and after his takeover in May 2011.

Clark said: "As administrators, our primary statutory function was to ensure Rangers continued as a business and this was achieved. Secondly, we were tasked to secure a buyer for the club and this too was achieved.

"We are delighted that plans for the revitalisation of Rangers are now continuing with the new owners' intention to float the club on the AIM market. There has been widespread comment on the administration process but in reality the period 'oldco' Rangers has been in administration has been comparatively short."


PA

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