CREDITORS have been granted additional time to investigate a bankrupt tycoon over claims he hid millions of pounds as an investigation was approved into shares passed to former Rangers manager Graeme Souness.

Graham Gillespie's affairs are to be further probed after he failed to declare large sums of cash. The 55-year-old was declared bankrupt last year with £12.8 million of debts. He is now expected to pay thousands of pounds in court costs.

Sheriff Lindsay Foulis last week ruled his bankruptcy should be extended for a year to allow the further inquiries. Mr Gillespie gave 40% of a company he ran to his friend, Mr Souness.

Although the move was described as inexplicable by an earlier hearing at Perth Sheriff Court, Mr Souness said it was made on the advice of lawyers and accountants.

Trustee James Stephen had gone to court to seek an order preventing the lifting of Mr Gillespie's bankrupt status after the mandatory minimum 12 months.

Mr Stephen's solicitor Rosemary Scott told the court he had been guilty of unlawful business dealings and hiding assets from the lengthy list of people to whom he owed money.

Sheriff Foulis has now ruled in the trustee's favour, adding in a judgment: "I am satisfied that the trustee is entitled to the deferral of discharge he seeks.

"It seems to me, on the basis of what has been produced, there may be justification in the trustee's unease as to the picture provided to him.

"In all the circumstances I shall grant the crave of the application and defer the discharge for a period of one year. I consider the issues to which I have referred easily outweigh Mr Gillespie's right to discharge after the expiry of the 12-month period."

The sheriff said Mr Gillespie and his lawyers should have provided more information to justify the passing of a tranche of shares to Mr Souness.

He also said Mr Gillespie was inconsistent in his claim his partner had not worked for 10 years but had been able to afford a £2m property deal with him.

He said his lack of transparency over a string of expensive racehorses - which he claimed became worthless as they were retired - was also deemed to be worthy of further investigation.

The sheriff noted that money had simply vanished from the sale of one of Gillespie's highly sought-after personalised number plates, GG1.

Sheriff Fowlis added: "The trustee requires more time to investigate matters on behalf of Mr Gillespie's creditors. These investigations are related to asset recovery and the movement of funds between Mr Gillespie and his partner, family members, associates and companies.

"There had only been partial co-operation."

He added that Mr Gillespie's failure to disclose a property in Glasgow placed him in "a position of considerable weakness."

He concluded: "The trustee sought deferral in light of apparent commission of offences, non-co-operation on the part of Mr Gillespie, a false statement of his assets and liabilities, deliberate attempts on his part to conceal assets and the potential alienation of assets."

Mr Stephen accused Mr Gillespie of subterfuge - including handing shares to Mr Souness - as part of an illicit plan to hide millions from creditors.

Mr Gillespie hid a number of deals from creditors in a bid to hang on to his fortune despite being £12m in debt, the hearing was told. The court heard the tycoon had hidden horses worth £3m, personal registration plates worth £800,000 and property in Spain and Glasgow.

Mr Gillespie claimed he had simply forgotten that he owned the Glasgow flat, despite his daughter living in it.

"Attempts were made to conceal assets, the trustee believes, relating to shares," Mrs Scott said. "There is mention of a 40% transfer of the shareholding in Airdrie North Ltd from the debtor to Graeme Souness.

"The trustee's concern is that, in spite of requests, neither the debtor nor these associates could provide any rationale for these transfers, or explain why these transfers took place. The trustee is just not satisfied about the explanation over the transfer of shares."

Mr Souness, 60, has previously commented: "It was said in the court case that [the transfer] was on the advice of our accountants and our lawyers."