The administrators: Duff & Phelps turn attentions to newco preparations

Chief Sports Writer

Wednesday 13 June 2012

RANGERS' administrators were last night finalising details of a newco with Charles Green after all parties conceded hope of a creditors' voluntary agreement was now gone following the refusal by HMRC to back it.

Paul Clark ruled out any late intervention by groups such as the Blue Knights

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Hugh MacDonald

Paul Clark of Duff & Phelps, said: "We're disappointed but we've structured a deal with Charles Green so that if, for whatever reason, a CVA couldn't be concluded, we still had the fall back of a new company and an asset sale which would mean Rangers Football Club would survive and can continue."

He also ruled out any late intervention by groups such as the Blue Knights, adding: "Even if they did, we've got a binding agreement."Clark believed that HMRC opposed the CVA because "they feel that because of the company's previous delinquency on its tax payments and their general concerns over EBTs, they felt the monies being offered to them were simply not enough".Rangers are also awaiting the result of "the big tax case" on alleged misuse of EBTs.Clark also detailed what he expected to happen next. "We assume, regardless of what the other creditors' views are, on Thursday, around late morning/ lunchtime, the CVA will be rejected and we think the meeting will now be a very short one," he said."What we'll be seeking to do as soon as possible following that rejection is to finalise and formalise the sale of the business and assets, effectively picking up everything that is currently residing in Rangers plc and moving it to a new company which will then become the corporate shell for the Rangers FC."The whole point is not to allow the football club to do anything other then exist. It's just to change the name over the door if you will."He expected it would take "six to 10 weeks" to liquidate the company and confirmed talks had taken place with the SFA and the SPL "about the implications of a newco". He added: "What we would hope is the SPL will look favourably on the newco's position. The precise terms of how that works I will probably leave to the SPL and Charles Green to comment on going forward."Asked if and when a newco could sign players, Clark said: "It's part of the discussion between what newco looks like and what it negotiates with the football authorities. I don't think it's an automatic ban. We've always said you can divorce the club from the corporate shell it sits in."The football club will be intact. That's what had the penalties and embargos imposed upon it therefore, I think Charles Green and the football club will need to look at the entity that was given the punishment and decide how that looks going forward."He had no information on when the big tax case would be decided. "I don't think it would have made any difference had we known about it or not," he said. "We would have known whether HMRC were nearer £20m or £100m in creditor claims but they've made it clear that had no influence on their decision."

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The administrators: Duff & Phelps turn attentions to newco preparations

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