GLASGOW RANGERS were today forced into liquidation after major creditor Her Majesty’s Revenue and Customs (HMRC) formally rejected an offer of a Company Voluntary Arrangement (CVA) from the club’s administrators.
• Ten minute meeting at Ibrox this morning with club’s creditors saw HMRC formally reject offer
• Administrators Duff & Phelps plan to transfer business to Charles Green to set up a ‘newco’ in coming days
• SPL will vote on newco application to league 14 days after application submitted
The creditors meeting is believed to have lasted less than 10 minutes with HMRC’s decision to reject the CVA having already ensured Green would not receive the 75% backing required.
Green’s CVA offered creditors up to 9p in the pound and totalled £8.5m. If achieved the club would have aimed to trade its way out of administration.
The club will now be liquidated and its assets sold to a new company which will aim to continue with football at Ibrox.
Malcolm Cohen and James Stephen from financial company BDO have been appointed as Joint Liquidators.
Unsecured creditors are owed a confirmed £55 million and the vast majority of Green’s £5.5 million payment to purchase the club’s assets will go to administrators Duff and Phelps and on legal costs, although liquidators will pursue other avenues to recover cash.
A judgement on the ‘Big Tax Case’ for alleged improper use of Employee Benefit Trusts, which would have left the liquidated club with tax liabilities in excess of £50m, has not yet been reached.
Some of the 26,000 small shareholders have seen their stake in the club disappear with the failure of the CVA deal.
Green has previously promised to name more of the investors in his Sevco consortium after the CVA meeting having so far confirmed only two - a Malaysian hotelier and Middle Eastern lawyer.