Andrew Ellis takes legal action against Whyte shareholding

Rangers administrators Duff and Phelps face yet another legal obstacle to selling the stricken club after Andrew Ellis started legal proceedings to claim 25% of Craig Whyte’s shareholding in the club.

Ellis introduced Whyte to David Murray after his own bid to buy the club was rejected in May 2010.

During due diligence Ellis was credited with being a partner in the deal but after Whyte bought up 85% of the club for £1 Ellis disappeared off the radar.

Duff and Phelps have gone on record to state that they will select the preferred bidder for Rangers this week and hope to exit administration before the end of the season.

So far Whyte has shown no willingness to hand over his shareholding. With Ellis now questioning the legality of Whyte’s shares in court another huge hurdle stands between Duff and Phelps being able to take the club out of administration.

Ellis, who has been linked to the bid for Rangers from Bill Miller, told the Daily Record: “I am owed 24.9 per cent of the entire club’s shares and I will be suing Craig Whyte for it.

“This was part of the initial agreement prior to the takeover and I have correspondence to prove it. At the time the solicitors sent all the documents through, Craig accepted the fact that I was getting 24.9 per cent of the club.

“My lawyers wrote to Craig on Thursday about this and we are awaiting his response. I do not trust his intentions for the football club and I want to do what I can to make sure the best interests of Rangers are being looked after.

“That’s why I have been actively engaged in talking to one of the bidders. I’ve been trying to assist them in their efforts to save the club as I am so disappointed with all the damage that Whyte has done.”

Trading in Rangers shares was suspended in February by the Plus-market after the club failed to produce any audited accounts during 2011.

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