THE American tycoon at the centre of a bid for Rangers has said he plans to "clean up" the potential £134 million of toxic debt and that liquidation is not an option.

Bill Miller, chairman of Tennessee-based Miller Industries, the world's largest manufacturer of towing and recovery equipment, has built a reputation for "resurrecting dead giants". He believes his experience as a business turnaround specialist can save the 140-year-old club.

Mr Miller's offer is believed to be the biggest of the three still in contention for control of Ibrox, with competition from the Blue Knights and Bill Ng's Singapore consortium.

The Herald can reveal the American entrepreneur was linked to the US and UK consortium pulled together by Club 9 Sports, the frontrunner in the race to buy Rangers after the first round of bids. It was prepared to pay £25m for control. The bid was more than double that on offer from the Blue Knights, led by former Rangers director Paul Murray.

Mr Miller told The Herald yesterday that he wants a deal that will allow the club to exit administration through a company voluntary arrangement (CVA), a procedure that enables a company to reach an agreement with its creditors about how the debt is to be repaid.

He said: "Any Rangers fan should be alarmed by this debt. It totally hampers the club's ability to be successful. It is my intention to clean this up. Any time you negatively affect the future revenues by mortgaging the future of a team, you are endangering its very survival."

The 65-year-old entrepreneur, whose firm is worth $185m, is not believed to be a huge soccer fan but sees resurrecting Rangers as an opportunity.

"My preference is a CVA exit. It has not been determined yet as to how this or another structure may work," he said. "I am working with the administrators and lawyers to find a creative solution that protects the history and future of Rangers but does not have the club hampered by large amounts of debt going forward."

The Detroit-born tycoon, whose company made $109.4m (£68.9m) in sales and $16.3m (£10.2m) in gross profit in the last three months of 2011, said he believes his plans "are the best for the club's long-term success".

His restructuring and buyouts over

32 years have turned Miller Industries into a global enterprise that employs hundreds. He said: "I have a history of seeing the potential in struggling companies. I like to save things.

"I would not be interested if I did not have the best interests of the fans, supporters, team and club at heart."

Mr Miller tried, with the help of The Herald, to speak to Rangers manager Ally McCoist in advance of his weekly pre-match press conference.

Meanwhile, chairman Craig Whyte said the club had fewer liabilities than when he took over, despite a report showing the debt could be £134m.

He insisted Rangers would emerge from administration a more viable business and refused to rule out retaining his 85% shareholding.

Whyte bought Sir David Murray's shares last year and pledged to invest his own money and pay off their bank debt, which was about £18m. He did so with money secured from Ticketus on future season ticket sales, and Rangers were forced into administration by Her Majesty's Revenue and Customs over a VAT and PAYE bill that is more than £14m.

Whyte blamed HMRC, adding: "They refused to discuss the case ahead of the [tax] tribunal so it was impossible to have a sensible discussion with them."