Glasgow Rangers are set to be re-formed as a new company after Her Majesty’s Revenue Customs blocked a proposed creditors’ deal.
Prospective buyer Charles Green had put forward a bid to exit administration via a company voluntary arrangement, but HMRC voted against the proposition, which would have seen creditors receive nine pence in the pound.
The Glasgow club’s future now depends on their Scottish Premier League opponents, who will vote on whether to re-admit Rangers to the top-tier competition next season.
HMRC released a statement saying: “A liquidation provides the best opportunity to protect taxpayers, by allowing the potential investigation and pursuit of possible claims against those responsible for the company’s financial affairs in recent years.
“A CVA would restrict the scope of such action. Moreover, the liquidation route does not prejudice the proposed sale of the club. This sale can take place either through a CVA or a liquidation, so the sale is not being undermined, it simply takes a different route.
“Liquidation will enable a sale of the football assets to be made to a new company, thereby ensuring that football will continue at Ibrox (Stadium). It also means that the new company will be free from claims or litigation in a way, which would not be achievable with a CVA.
“Rangers can make a fresh start.”
Green expressed his sadness in a statement: “I am hugely disappointed by the decision of HMRC not to support the CVA proposal and that disappointment will be felt acutely by Rangers fans across the world.”
Joint administrator Paul Clark expects Green to continue in his efforts to purchase the club’s assets and establishing a new company would be discussed at an Ibrox meeting on Thursday.
“That transaction will be completed within a few days,” Clark said.
“The sum payable to creditors will be 5.5 million pounds, most of which has already been paid over to us by the Green consortium.
“Over the coming months, we as administrators will continue to finalise the administration of the club and we will work in conjunction with BDO, who will undertake the liquidation process.
“While the club will continue to face difficulties in the short term, it will survive and continue to play at Ibrox.”
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