SIR David Murray has begun the formal process of winding up his Edinburgh-based conglomerate Murray International Holdings, which will close with debts in the region of £200 million.

 

The former Rangers owner has petitioned the Court of Session in Edinburgh to wind up MIH and a host of subsidiary companies, as well as seek the appointment of liquidators.

It brings to a close a six-year process of restructuring and disposing MIH assets to pay down bank debt. Bank borrowings soared to £900 million after the business was hit by the "perfect storm" of the collapse of the steel and property markets following the financial crash of 2008.

Sir David, who confirmed in October that MIH would be wound up after closing its prestigious office in Edinburgh's Charlotte Square, said that at the date of insolvency Murray Group Holdings had debts of £40m. Premier Property Group had debts of £150m and the outsourcing business which became Response had £10m of debt.

The secured creditor was Lloyds Banking Group, owner of Bank of Scotland.

Sir David emphasised there are " minimal ordinary creditors" and said the fact continued employment had been secured for more than 95 per cent of the Group's 2008 workforce of 3000 in other family concerns means the outcome is "a positive, not a negative".

Sir David said: "This has been a consensual approach with the bank, and it has been an orderly, managed process. It's not been easy - it could have been easier to walk away and not do it - but it was decided with the lender that we would work this out, and we have done so."

Asked if he was satisfied with the outcome, Sir David said: "All I know is that with the bank we have done the best in everyone's interest. The losers are primarily the secured lender and we lost as a stakeholder our value in the business. But I think by working with them we have come up with a better solution.

He added: "It's not a thing to be sticking our chests out about. We would have preferred not have to be in this situation. You must remember the Murray Group got hit by the perfect storm.

"I think we have done reasonably well - you could always have done better - but I think we have done reasonably to recover [and] sustain it. We do have a business ourselves employing nearly 800 people paying wages in. [With] those people we have maintained, there is probably still £80m, £90m of wages going into the Scottish economy."