A FOUNDING partner of a finance firm which advised Craig Whyte over his disastrous takeover of Rangers, and went on to become an administrator when it financially imploded has denied knowledge of an alleged "end game" for the club to go bust as it faced millions of taxman debt.
Details of the 'plan' came in an email from a key figure from within corporate restructuring advisory firm MCR (Menzies Corporate Restructuring), which said that while Mr Whyte had been seen initially publicly as "a saviour" during the takeover he actually had "no f**king clue" with "no plan, no strategy and very little due diligence".
The communication came from Michael Bills of MCR (Menzies Corporate Restructuring) 26 days after Mr Whyte bought the debt-ridden club for a token £1 from Sir David Murray, the former chairman of Rangers in 2011.
Paul Clark, who was one of the joint administrators of Rangers when the club financially imploded nine months later, had also been one of three founding partners of MCR and denied knowing the game plan outlined by Mr Bills, who had been working with key Craig Whyte takeover adviser David Grier , the Court of Session was told.
The email surfaced as BDO, the liquidators of the Rangers oldco sues the joint administrators of the club Mr Clark and David Whitehouse for £56.8m saying a flawed cost-cutting strategy meant creditors lost millions from the handling of the club’s financial implosion.
Mr Whitehouse and Clark of Duff and Phelps are defending the action in the Court of Session claiming the liquidators expected a “bonkers” strategy of a ‘fire sale’ of Rangers which would have “effectively shut the club down for good”.
The action comes nine years after the Craig Whyte-controlled Rangers business fell into administration and then liquidation after he was at the helm for just nine months leaving thousands of unsecured creditors out of pocket, including more than 6000 loyal fans who bought £7.7m worth of debenture seats at Ibrox.
Mr Bills' email, sent to John Norris, a restructuring manager at MCR, said: "We are not broadcasting involvement to anyone in case [the] guy who has bought it, our client, makes a mess of the whole thing.
"We don't want to be associated too heavily.
"Led by DG [David Grier] but Whitehouse was on site as well today and PJC (Paul Clark) closely involved.
"We are engaged to review short term cash flow and org, chart associated cost and liaise with HMRC [HM Revenue & Customs] on the club's behalf - although we are unofficially being dragged into other things as the guy who has bought it hasn't got a f**king clue - no plan, no strategy, did very little DD [due diligence] - it is honestly baffling.
"He only went ahead and did it as he hasn't risked any of his own cash - paid £1 for shares and funded repayment of bank debt by forward selling three years worth of season ticket revenue.
"So everyone thinks he is a saviour but in fact it is all a big front and the club has as much debt as it had before, just to someone else.
"Club are under investigation by HMRC for a decade of tax evasion which they claim amounts to circa £50m. If they win, club will go bust and that is our end game, ultimately..."
Mr Clark denied being closely involved with Mr Whyte.
READ MORE: Rangers FC brand was not valued before being sold for nothing
He told Lord Tyre in the Court of Session he had met Mr Whyte prior to him being involved in Rangers on two separate occasions, one to talk about "a matter that did not go anywhere" and secondly at a dinner he attended with several others.
The next time he met him was a month or so prior to his acquisition of Rangers. He said he was sure he had not met him again by June 1, when Mr Bills sent his email.
"And so, quite how I could be closely involved.... I'm reasonably certain that I played no active part and if there is any evidence on my timesheets for the period of May to June, and I do keep accurate timesheets to record the time I've spent, it would have been minimal and I am not sure there's any time whatsoever.
"And so I don't know how that comment is made that I was closely involved. And in terms of the further comment. I'll add if I may, that the concept of Michael Bills telling a former colleague, that it's to go bust... and that's my plan, I have no recollection of that nor is that something that I'm accustomed with so, no, this this makes no sense to me from my personal position."
Kenny McBrearty QC, for BDO said: "So really all I want to ask you is the extent of the knowledge you had prior to appointment, do you accept that in fact you were closely involved in the assignment....
Mr Clark said: "No, I do not, I don't know why Michael Bills would have said that. To put things into context, I can say with certainty that by that date, I had not visited Ibrox. "Again I repeat, I think I'd met Craig Whyte once... I should stress, I'd met him previously prior to him being involved in Rangers on two separate occasions, one to talk about a matter that did not go anywhere, secondly a dinner, I attended with him and several others. And then the next time I met him was in the period, a month or so prior to his acquisition of Rangers.
The QC asked: "Did you know the arrangements, which had been entered into in order for Mr Whyte to buy the club.
Mr Clark said: "No."
Mr Clark and Mr Whitehouse in a separate case agreed a settlement estimated to be around £24m after an agreement in a malicious prosecution case against the Lord Advocate and the Chief Constable was reached "extra-judicially".
Insolvency expert Mr Whitehouse and Mr Clark were subjected to detention and criminal proceedings with others in relation to fraud allegations in the wake of businessman Craig Whyte's purchase of Rangers from Sir David Murray and its subsequent sale before a judge dismissed the charges.
Mr Whitehouse and Mr Clark alleged they were subjected to wrongful detention, arrest and prosecution during police investigations in 2014 and 2015.
All seven charges against them, alleging conspiracy to defraud and attempting to pervert the course of justice, were either withdrawn by the Crown or ruled irrelevant by the High Court.
The police investigation was launched against a backdrop of the controversial nature of Mr Whyte's nine-months in charge after his 2011 takeover.
He agreed to take on Rangers' financial obligations, which included an £18m bank debt, a potential £72m 'big tax case' bill, a £2.8m "small tax case" liability, £1.7m for stadium repairs, £5m for players and £5m in working capital.
But he controversially helped fund his takeover by setting up a loan in advance from London-based investment firm Ticketus against rights to three to four years of future club season ticket sales in a bid to raise £24 million and pay off bank debt as part of a share purchase agreement with Sir David Murray.
Mr Whyte ended up being the last man standing in the fraud conspiracy case and was acquitted of taking over the club by fraud at the end of a seven-week trial four years ago.
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