THE company Craig Whyte used to buy Rangers has gone into liquidation in a move that threatens the financial meltdown of his business interests.

The development comes after Ticketus, which helped fund the venture capitalist's takeover, began liquidation proceedings against Liberty Capital in the Virgin Islands over its failure to pay a £5000 legal bill.

The court-appointed liquidator, Scots-born Stuart Mackellar, confirmed the process of investigating Liberty Capital's accounts had already begun.

Last year, Mr Whyte took Rangers into administration after alleged non-payment of £9 million in PAYE and VAT.

Liberty was presented as Mr Whyte's main investment company, which he claimed invested across a range of business sectors, with operations in the UK and abroad.

Rangers FC Group Ltd was a subsidiary of Liberty Capital set up to buy Sir David Murray's 85% controlling shareholding in the Ibrox club for £1 in May 2011.

Mr Whyte sold off the rights to three years of Ibrox season tickets to Ticketus to raise more than £20m and pay off the club's debt.

The bill that caused the liquidation arises from a High Court action in London in April. Mr Whyte was ordered to pay back nearly £18m of the money raised through the ticket deal, plus interest, to Ticketus. It was decided at an earlier hearing costs should be awarded to the London-based ticket agency.

Ticketus had claimed Mr Whyte made deliberate misrepresentations over the season-ticket deal by failing to disclose his previous directorship ban.

It has been confirmed Mr Whyte is appealing against the decision.

Ticketus is expected to be a major creditor in a liquidation of Liberty Capital, with a claim of more than £26m.

Mr Mackellar, who is originally from the southside of Glasgow, is managing partner of Virgin Islands-based Zolfo Cooper.

Mr Whyte was unavailable for comment last night.