Rangers oldco liquidators are pursuing a £25m claim against former lawyers

[Guest sergi]

Rangers oldco liquidators are pursuing a £25m claim against Craig Whyteâ??s former lawyers.

Insolvency firm BDO, which is overseeing the winding up of RFC 2012 PLC, formerly The Rangers Football Club PLC, is pursuing Collyer Bristow in a civil action raised at the Royal Courts of Justice in London.

The action was originally pursued by administrator Duff and Phelps, which was called in to run the oldco on February 14, 2012. It claimed that former owner Mr Whyte and his lawyer Gary Withey, who worked for Collyer Bristow, had participated in the "deception" of board members in the ill-fated May 2011 takeover.

On Tuesday, BDO confirmed it was pressing ahead with the action, while it is also counter-claiming against Merchant Turnaround, a firm that Mr Whyte has a substantial shareholding in through his British Virgin Islands-based Liberty Capital Ltd.

The case will call later this year at the Chancery Division of the High Court in London and includes HM Revenue and Customs and the Trustees of the Jerome Group plc Pension Fund as claimants against Collyer Bristow.

Rangers went into administration with debts of up to £124m, including £18m unpaid PAYE and National Insurance taxes incurred during Mr Whyteâ??s nine-month reign at Ibrox. The Jerome Group is wholly owned by the Worthington Group PLC, which Mr Whyte also owns a stake in through Liberty Capital.

According to the Worthington Groupâ??s annual accounts for 2012, it was in the process of loaning Rangers £3m when the oldco was plunged into administration. It claims that it is "confident that the £3m will be recovered, plus interest and costs".

Collyer Bristow, Mr Withey and Mr Whyte have denied the accusations originally levelled by Duff and Phelps, now by BDOâ??s interim liquidators Malcolm Cohen and James Stephen.

Mr Whyte purchased an 85% shareholding in Rangers for £1 from Sir David Murray in 2011 after lengthy sale negotiations. Mr Whyte effectively funded his purchase by agreeing a £26.7m deal with London firm Ticketus for future Ibrox season ticket sales, while the club had previously agreed similar deals under Sir Davidâ??s time as owner.

This cash was used by Mr Whyte to clear the £18m debt Rangers owed to Lloyds Banking Group. Duff and Phelps was originally an advisor to the takeover and was present throughout his time at Ibrox, however partner David Grier has repeatedly denied he had any knowledge that the Ticketus deal was being used to fund the buyout, although Mr Whyte disputes this.

Court dates have not yet been set in the case, while Ticketus has stated it is launching separate legal action against Mr Whyte over the deal, which was eventually rescinded by Duff and Phelps after it received backing to do so for the benefit of creditors from the Court of Session.

[the gunslinger 3,366]

could be a very interesting case,

[stewarty 1,876]

Hypothetically, say oldco recovers this £25m. Whats the net position of monies owed assuming HMRC fail to or don't appeal FTTT's judgement?

[calscot 0]

HMRC must be owed about £25m and Ticketus something like £35m.

[the gunslinger 3,366]

total debts were around 55 million without the big tax case.

[Tumshie RFC 0]

If we could recover that every penny must be handed to the creditors who lost out due to the shambolic running of the company.

[the gunslinger 3,366]

it will be.

[stewarty 1,876]

After the liquidator's costs have been paid, that is.

[der Berliner 3,247]

Rangers went into administration with debts of up to £124m, including £18m unpaid PAYE and National Insurance taxes incurred during Mr Whyte’s nine-month reign at Ibrox. The Jerome Group is wholly owned by the Worthington Group PLC, which Mr Whyte also owns a stake in through Liberty Capital.

 

Rubbish, as we know. And it looks like GDs was not so far off with his claim that the oldco is owed that amount.

[RANGERRAB 3,258]

if it's proven SDM was blackmailed into selling to Whyte by LBG will BDO pursue LBG also ?

would be good if Fullerton and/or Kane were to do a stretch behind bars would it not?