Rangers takeover: CVA bid ‘on track’ as date is set for 14 June
RANGERS administrators Duff & Phelps have set 14 June as the date when their attempt to avoid the liquidation of the Ibrox club through a Company Voluntary Arrangement (CVA) will be held.
• Administrators announce they will publish details of CVA tomorrow
• Creditors to meet administrators on Thursday to consider CVA proposal
• HMRC and Ticketus are Rangers’ biggest creditors
• Blue Knights claim time has run out for Rangers to implement CVA
Official documentation of the CVA proposal will be sent to creditors tomorrow, eight days later than the original timetable set out when Charles Green signed a binding contract on behalf of his Sevco consortium to buy Rangers. Duff & Phelps indicated at the weekend that the proposals would be sent out yesterday, aiming for a CVA meeting on 13 June, but they said in a statement last night that it had been further delayed by ongoing talks with some of the creditors.
Despite that, co-administrator Paul Clark insisted the process is “on track” and expressed the view that the pence-in-the-pound offer being made will maximise the amount creditors could expect to receive from the financially-stricken club.
“A formal notice of the CVA meetings will be sent to all creditors and shareholders of the club tomorrow providing further details of the CVA process,” said Clark. “The proposal will offer the best return for all stakeholders given the position the club is in. If approved by the creditors, the CVA proposal will rescue the company and finally enable it to exit administration. Details of the CVA proposal have been finalised today.
“Rangers supporters should be reassured the CVA process is on track. The creditors’ meeting to consider, and hopefully approve, the CVA will be held on Thursday, 14 June.”
Creditors need at least two weeks to consider the proposal with a 75 per cent majority needed to pass the plan. There would then be a further 28-day cooling-off period before Rangers could come out of administration. The fate of any offer effectively lies in the hands of both investment firm Ticketus, who are owed £26.7m, and Her Majesty’s Revenue and Customs, who are due at least £14m but potentially several times more. Green’s group have pledged £8.5m with another £3.5m coming from transfer fees due to the club. Litigation over Craig Whyte’s takeover deal could provide further funds at a later date.
The delays mean Green’s group could have to fund a £1m-plus monthly trading loss when the players revert to their normal wages on Friday after accepting cuts of up to 75 per cent for three months. Rangers are also open to losing key players for reduced fees after the transfer window opens, also on Friday, as several negotiated exit clauses in their varied contracts.
If no CVA is agreed, Green plans to push through a newco purchase of the assets which would leave him needing to apply to the Scottish Premier League to take the current club’s place in the competition.
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