RANGERS chairman Dave King has had a claim for millions from the £18 million club oldco creditors pot thrown out by liquidators.

The South African businessman had claimed he was owed £20 million over an investment in the club 15 years ago, when Sir David Murray was owner. If he had succeeded it would have made him the third biggest creditor of the in-liquidation former operating company.

But the Herald understands the liquidators BDO have rejected his claim as an unsecured creditor - potentially raising the amount available to others stung by the oldco collapse.

Mr King revealed moves on Thursday to try and pay off the oldco creditors and revive the oldco, RFC 2012 plc, which is in the process of being liquidated after former owner Craig Whyte presided over its descent into administration in February, 2012.

It is a move that could potentially see the club having to come up with as much as £78 million to pay off creditors.

One insolvency expert has said that even if creditors agreed to a settlement, it would only result in the oldco either being dissolved or placed back into the hands of the previous owner, Craig Whyte.

When Mr King ploughed the money into the club, a new £53 million share issue had been made to improve the playing squad and develop a strong youth policy through a new academy. Some of the new cash also went towards lowering the club's then £40m debt.

Of that, £20m was described as new money from Mr King, invested through his Ben Nevis Holdings firm. Mr King became a non-executive director at Ibrox.

He became at the time the club's second-biggest shareholder through his stake in Murray Sports, Rangers' parent company.

When The Herald revealed details of his claim last year, he stood to gain at least £3m as one of the main unsecured creditors.

But questions were raised in some circles over how a Rangers oldco investor who had received shares in return could qualify as an unsecured creditor. Oldco shareholders will not expect to see a penny in any creditors pot payout as secured and unsecured creditors have to be paid off first.

The Herald understands that Mr King has accepted the position of the oldco liquidators BDO and there has been no challenge.

Over three years ago, Mr King said he was to mount a legal challenge against former Rangers owner Sir David Murray over the investment.

Mr King's announcement of a legal challenge came amid allegations he made on the basis of non-disclosure by former Rangers owner Sir David Murray over the club's true financial position in 2000 when he made his investment.

Mr King said at the time that any benefit he made from the claim would be fully reinvested into the restructured football club.

He said at the time: "I seem to be one of the few people who actually invested cash into the club."

Sir David has previously insisted to the Herald that no financial information was withheld from Mr King and that during his time as chairman he had not made any complaints.

Mr King declined to comment on whether he would continue to mount the legal challenge against Sir David or on the position with the liquidators.