Duff and Phelps collect £5.5m from Rangers CVA offer
Rangers CVA proposal will offer over 400 trade creditors a maximum of 9p in the pound while administrators Duff and Phelps pick up £5.5m for four months work- if the CVA is approved.
That offer is based on Rangers not having to pay anything for the big tax case, if the Ibrox club lose the big tax case the payout will sink to 2p in the pound with Duff and Phelps still liable for their full bill.
A 60 page document was issued yesterday detailing the offer but with 84% of the debt owed to HMRC and Ticketus those two companies will effectively settle the issue. If either votes against the unspecified deal Rangers will be pushed into liquidation and further legal battles to establish a newco.
HMRC are owed £21.5m and Ticketus £27m with both debts arising over the last 13 months. The best case scenario from the proposal is that HMRC collect £2m with Ticketus receiving £2.5m.
With Ibrox and Murray Park recently valued at £130m and a monthly wage bill in excess of £3m it’s highly unlikely that either major creditor will accept a cut price offer while Rangers attempt to reform debt free as a newco while Duff and Phelps pick up more than HMRC and Ticketus combined.
A meeting of creditors will be held on June 13 to decide on the offer with a 30 day cooling off period for anyone to change their mind.
The offer has been put together by Charlie Green’s mystery consortium with the £8.5m offer to the club being part of a loan repayable by 2020.
With complications and claims over Craig Whyte’s shareholding and the ownership of Ibrox and Murray Park it’s highly unlikely that a deal will be struck to allow Rangers to continue in any recognisable form.
At Hampden today the SPL will attempt for the third time to set up new financial fair play regulations which will effectively be tested out on Rangers.
A vote has been put off twice before as talks continued with Duff and Phelps then Bill Miller but with next season’s fixtures due to be published in a fortnight time is running out for the SPL clubs.
Preparing for at least a season without Rangers may be unthinkable for some clubs such as Kilmarnock but the reality is that the financial crisis as Ibrox is no closer to being solved than it was on February 14- when Duff and Phelps arrived and started collecting their £5.5m fees.
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