Martin Bain’s decision to drop legal action against Rangers welcomed

Bain stressed that his legal claim was made in response to Craig Whyte’s actions and not those of the Old Firm club. Bain has been pursuing the Ibrox club for almost £900,000 in damages after being sacked by new owner Whyte in May. Bain alleged that this was in breach of contract and fought to have some of the club’s assets frozen in anticipation that Rangers would enter administration.

The case at Scotland’s highest civil court, the Court of Session in Edinburgh, was due to be heard in full in August. However, Bain’s decision means that this potentially damaging appointment can be crossed out in the diary.

Last year a judge told the club, who duly entered administration in February, to set aside almost £500,000 in the event that Bain won his case. However, this sum, minus legal expenses, has now been made available again to the club’s administrators, who have agreed to settle the litigation with Bain. The former chief executive explained that his about-turn was based on a desire to help Rangers out of their current predicament.

“In light of the club’s current position, I instructed my lawyers to advise the administrators that I am willing to discontinue the legal action and, subject to recovering the costs associated as a result of this action, I will give over to the administrators the remainder of the money that was arrested as part of my case in an effort to help the club,” he said.

“I always have done, and will continue to do, everything I can to help the club in these difficult times.”

Paul Clark, joint administrator for Duff & Phelps, saluted Bain’s actions, and confirmed that the former chief executive’s dispute had been with Whyte himself.

“We are pleased Martin Bain has, in light of the present situation at Rangers, offered to drop his action for damages following his dismissal by Craig Whyte whilst chairman,” said Clark.

Bain also cast more light on his motivation to bring the case against the club, and the circumstances which led to his acrimonious departure. He described as “shocking” the damage that has since been inflicted on the club by Whyte.

Bain emphasised that he had been sceptical of Whyte from before he was confirmed as the new Rangers owner at the end of May. As a member of the independent board, assembled to run the rule over prospective new owners of the club, Bain consistently questioned Whyte’s financial credentials.

“Everyone close to Rangers Football Club knows that I am and always have been totally committed to the club, and that remains my position,” he said. “As chief executive and part of the independent board, our job was to assess and highlight to all stakeholders if we believed there was uncertainty over the future financial viability of the club under new ownership. Unfortunately, the independent board had no legal power to block the transaction and [former owner] Sir David Murray made it plain that he wanted to sell.”

Murray has recently claimed he was “duped” by Whyte, who used some of the funds obtained from mortgaged-off season tickets to purchase Rangers. “I personally strongly recommended on more than one occasion that Craig Whyte should not be allowed to buy the club, based on investigations into the transparency of his background and the responses to the questions asked of him as part of the process,” continued Bain. “Unfortunately that forceful representation was not accepted and when he took over I was suspended and my contract ripped up. With what has subsequently transpired, it is quite obvious why he disposed of me in the manner he did. I was further vilified in the press and continue to be subjected to endless rumours and attacks.

“Events have moved on and the damage inflicted on Rangers is shocking. I had no option but to pursue a claim based on Craig Whyte’s actions; the litigation was a response to his actions and not those of Rangers. I firmly believed it was important to make sure he would have to explain everything he did in a court of law.”

The former chief executive also said that turnover at the club had increased and the debts were reduced in the time before Whyte “forced” his exit. He stressed that the club was on the road to financial recovery prior to the new owner’s arrival.

“In the two years since the board restructure in August 2009 and prior to Craig Whyte forcing my removal from the club, turnover had increased, operating costs reduced with net debt more than halved from £31.1 million at June 30, 2009 to £14.1m at June 30, 2011, while the club had won three consecutive league titles in difficult circumstances.”