Green's newco deal blow for SPL vote
The SPL have twice postponed voting on allowing the transfer of a share to a newco and are set to meet again on May 30 without knowing any definite news on the status of Rangers.
Duff and Phelps hope to get agreement for a CVA on June 6 otherwise they have two weeks to set up a newco that is accepted by the SFA and SPL.
The Ibrox administrators announced this morning that they have accepted an offer to purchase Rangers Football Club from Mr Charles Green but there is little to reassure those SPL clubs whose business plans seem dependent on being in the same league as Rangers.
The Green deal is dependent on a CVA being accepted by creditors such as HMRC otherwise they’ll have to encounter the uncharted waters of the newco route.
David Whitehouse of Duff and Phelps announced: “Mr Green has secured, via a substantial financial commitment, a period of exclusivity to complete the purchase of the Club and this is expected to be finalised at a creditors’ meeting on June 6.
“The structure and quantum of the offer from Mr Green is such that it is acceptable to us as administrators and, having been in discussions with major creditors throughout the process, we believe this presents the best prospect of financial recovery for creditors.
“Mr Green, through a corporate vehicle, has entered into a binding commitment to inject funds into the Rangers Football Club plc so that the administrators can propose a Company Voluntary Arrangement which, if approved by creditors, will result in their claims being compromised for specific amounts and the company exiting administration free of the historic debt and with new owners. Work on issuing a CVA proposal has already started and will proceed with utmost urgency.
“If the creditors do not approve the Company Voluntary Arrangement, the agreement obliges Charles Green’s purchasing vehicle to acquire the business and assets of the Club on agreed terms, through a newco structure.”
Green added: “At all times we will make decisions that are in the best interests of the Club. Not every decision at a club can be popular but I can tell every Rangers fan now that whatever decision is taken they will always be told the truth.
“We will do everything in our power to achieve a CVA and we already have a detailed written commitment from Mr Craig Whyte for the transfer of his shareholding.”
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