Creditors of oldco Rangers are set to be offered a fraction of what they’re owed, despite big law firms and the liquidators reportedly netting a total of more than £12 million.
The Daily Record is reporting that legal firms have already received over £9 million while the ongoing bill for liquidators BDO currently stands at close to £3.5 million.
Numerous creditors are taking legal action after the downfall of the Ibrox club five years ago with debts of over £130 million.
The Record reports that it has seen documents suggesting some creditors could be in line for an ‘interim dividend’ of just 3.91p in the pound, meaning that smaller ‘unsecured’ creditors such as a newsagents would receive a little over £22, despite being owed more than £567.
The Record carries the total sums paid to law firms Stephenson Harwood (fees of £7,080,329, outlays of £646,198), Brodies (£1,307,415 fees and £114,367 in outlays) and Levy McRae (£54,074 fees and £10,515 in outlays) but also quotes one small creditor as saying: “We’ve waited more than five years and we’ll probably have to wait even longer. There are still fairly big issues to be resolved and no sign of any money being handed over.
“It is a case of the small guy being duffed up once again, to see £10 million being paid out to the big firms while we get less than 4p in the pound.”
Based on the 3.91p in the pound calculation, current Ibrox chairman Dave King stands to receive a payout of just over £780,000 from the £20 million he invested in the club during the reign of Sir David Murray.
Leading to King acquiring a non-executive director role, it is understood much of the investment went on partially clearing the club’s debt at the time.
According to a financial expert who spoke to the newspaper, the size of the debts meant that it was ‘always going to be realistically single digits in the pound’ for smaller creditors.