Rangers administration: Rescue plans in offing as interested parties come forward
Administrators David Whitehouse (left) and Paul Clark address the media. Picture: Robert Perry
RANGERS’ administrators have revealed that they have received “several expressions of interest from parties not connected to the club” since they took control at Ibrox three days ago.
No potential buyers are expected to show their hand at present, but those intimations of interest have increased hopes that the champions can find a viable future without Craig Whyte.
Administrators Duff and Phelps were appointed by Whyte, the club’s current owner, on Tuesday. Rangers’ move into administration triggered a ten-point penalty which leaves them 14 points behind Celtic in the SPL, but of more fundamental concern to the administrators is the financial state of the club. Rangers owe £9 million in PAYE and VAT to Her Majesty’s Revenue & Customs – a sum accrued since Whyte bought the club from Sir David Murray last year – and are also awaiting the verdict from a tax tribunal which could saddle them with a bill for an additional £50m.
“As administrators, we have to look at all other expressions of interest in the club and to date we have received several expressions of interest from parties not connected to the club,” Paul Clark of Duff and Phelps said at an Ibrox press conference yesterday, conducted by himself and colleague David Whitehouse. “These will be subject to ongoing discussions and examined in the forthcoming days.”
Former club director Paul Murray has talked of his hopes of reviving an offer he made last year in opposition to Whyte, in which he planned to involve a small group of like-minded individuals. A significant number of Rangers supporters favour a venture which would open the club up to mass ownership, but Murray regards it as more practical to have a small number of large investors rather than a large number of small ones.
Murray believes that the level of debt carried by the club before the Whyte takeover was sustainable, and that analysis is shared by one other interested group who contacted The Scotsman yesterday. They are willing to work with Murray and others to form a consortium, and think it crucial that an “institutionally acceptable” board is formed.
Their argument is that Whyte and his colleagues lacked sufficient standing in the business world to make a go of Rangers, even before the news emerged this week that the chairman had failed to pass on that £9m to HMRC. They are open to negotiations with Murray and any other parties, and envisage coming to an agreement with Duff and Phelps by providing proof of working capital, then opening the club up to wider investment with a rights issue.
Any moves will almost certainly not take place until it is learned whether Rangers enter a Company Voluntary Arrangement (CVA). Meanwhile, the administrators’ immediate concern is to determine if Rangers can come out of administration by the end of next month.
If that happens, and if accounts can be filed, the club will have accorded with Uefa licensing requirements in time to be allowed to take part in European football next season. If it does not, they will be confined to domestic competition.
Duff and Phelps think they have made progress since moving in on Tuesday, but could offer no more than hope when asked how confident they were of taking the club out of administration on time. Hitting the deadline was described as possible but optimistic - although they did imply that such a move was far more likely than liquidation which, they said, HMRC did not see as desirable. “In broad terms, supporters can be reassured that Rangers will continue as a football club and we hope to reach a stage as soon as possible where the club can emerge from administration,” Clark added.
“We have had expressions of support across the political spectrum in Scotland within the last 24 hours and there is clearly a desire to see Rangers come through this situation successfully. We are confident that, based on what we have seen, we will be able to achieve a successful result, which is that Rangers Football Club will continue.”
Administrators also held talks with the SPL and with the SFA yesterday.
“Our first priority has been to ensure that the football club continues to function and this is being achieved with the help of staff, players and management at the club,” said Clark.
“In particular, we would like to thank the club’s business partners who are going the extra mile to ensure that Saturday’s home match against Kilmarnock goes ahead.”
Asked about the unpaid £9m, Whitehouse said it had been used to help run the club. “They were deductions that were made at source that were fundamentally used as a funding tool for the club,” he said. He confirmed that the pending tax-tribunal verdict had not been the cause of Rangers’ going into administration. “Insolvency came about because of the consequences of losses since the takeover,” he said.
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Comments
There are 178 comments to this article
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SeeEmmEss
Friday, February 17, 2012 at 09:51 PM#177 Seriously, read things through before you reply to them. We all know there's been posts bringing up religion, but not - and this is the relevant part - connected with the current crisis at rangers, as far as I've seen. That's what ninny was on about; that's what I was refuting. And, BTW, telling people to grow up...any idea how childish that comes across?
Hague20
Friday, February 17, 2012 at 06:05 PM#176 You said 'very few IF ANY' Celts have made any comments about Rangers and Protestantism. Thats all in your head. Stop making yourself look a fool and go and grow up.
SeeEmmEss
Friday, February 17, 2012 at 04:55 PM#175 First off, I said, "very few, if any", not äbsolutely none". That's a distinction you have to make before replying in that fashion. Secondly, I don't recall seeing any comments in connection with rangers' financial problems saying anything about Protestants or Protestantism. Why would they? Celts have so much the upper hand in that discussion that it would be daft to bring such irrelevancies into it.
Hague20
Friday, February 17, 2012 at 03:46 PM#172 If you think that no Celts have made any remarks about Ranger and Prostestantism then you are deluded. I am neither a Celtic or Rangers supporter but it is not just one sided.
TGM Numero Uno
Friday, February 17, 2012 at 03:46 PMComment removed by moderator
TGM Numero Uno
Friday, February 17, 2012 at 03:41 PMComment removed by moderator
SeeEmmEss
Friday, February 17, 2012 at 03:37 PM#165 Your point...is no point at all, based as it is purely on your assumption. In all the posts I've read on here, and in all the blogs and discussion boards I've read on the subject, very few, if any, Celts have made any comment about rangers and Protestantism. That's all in your head. And it would be insulting to the many Protestant Celtic supporters if they did. Don't take your assumptions for reality; that could lead to really silly ideas, like your assumption that rangers had 30 million lying around to be used "when" they won the big tax case. Finally, don't assume that the people you're talking to are stupid; that can only lead to your own inadequacies being exposed.
radar
Friday, February 17, 2012 at 03:09 PMThe change from "Everybody hates Us, We Don't Care" to "Everybody needs Us, Bail Us Out" is quite breathtaking. Couldn't mark their necks with a blowtorch.
Pas D'Elle Yeux Rhone Que Nous
Friday, February 17, 2012 at 02:59 PMGreat comeback, Ninny......
Allthe9s
Friday, February 17, 2012 at 02:54 PMNL says the title this season cannot be devalued ... lol ... best one yet ... lol
Allthe9s
Friday, February 17, 2012 at 02:52 PM167 Away home your village is missing you ...
Pas D'Elle Yeux Rhone Que Nous
Friday, February 17, 2012 at 02:44 PMWe Ninny, our resident financial expert, thinks that RFC are in rude financial health. He also thinks that everyone other than himself is thick.
Allthe9s
Friday, February 17, 2012 at 02:39 PM164 Whatever you say thicko ... lol
Allthe9s
Friday, February 17, 2012 at 02:38 PM163 My point is that many fundamentalist Celtic minded that are driven by sectarian hatred of Protestants see Rangers as a Protestant Institution and want tae see them dead ... I never claimed that Rangers were a Protestant Institution ... is it me or are you folk really this thick? I am getting fed up drawing a map for you lot any time I make a post ... either smarten up of sod off will you?
Pas D'Elle Yeux Rhone Que Nous
Friday, February 17, 2012 at 02:37 PMNinny, Administration means that you have insufficient funds to pay your bills. The administrator then comes in and tries to cut your costs and negotiate a discount on your debts. If he is unsuccessful then you face liquidation. Either way you're skint, bust, potless, boracic......
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