Rangers Football Club will be liquidated on Thursday after HMRC announced that they will reject Charlie Green’s CVA proposal.
With Green promising supporters a golden future for a cash rich club at the same time as offering less than nine pence in the pound it was no surprise that HMRC announced their rejection of the CVA.
Responding to the news Green, whose £2 share purchase from Craig Whyte was dependent on the CVA being accepted, said: “The solemn promise I can make to Rangers fans today is that this club will continue as Rangers Football Club and will continue to play at Ibrox Stadium.
“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.
“Frankly, I do not see what benefit will be achieved by this decision. My consortium’s offer for a CVA amounted to a total of £8.5m.
“Now that we will have to complete the purchase via the formation of a newco, the purchase price and therefore the amount available to creditors will be £5.5m.
“I can understand HMRC deciding that football clubs which do not pay their taxes need to be punished, but by effectively banning Rangers from Europe for three years all that will happen is that there will be less revenue generated by the club and consequently less money paid over to the taxman.”
A statement from HMRC said: “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.
“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.”
HMRC are owed more than 25% of the total Rangers debt and can block the CVA vote as could Ticketus. There are more than 300 trade creditors of the club including teams from Scotland, England, Sweden, Italy, France and Austria.
Green’s newco plans are likely to be stopped in their tracks by HMRC appointing their own liquidator.
With assets such as Ibrox Stadium, Murray Park and a dozen international footballers an asset sale will realise more than the £5.5m ‘deal’ that Green has agreed with Duff and Phelps.
Whether a newco will be allowed into the SPL is another matter with evidence growing that clubs are becoming hostile to the idea as the Rangers crisis drags on with no sign of a solution.
If new club formerly known as (cheats fc) are admitted back into the SPL the chairmen know the game is finished. Why would any set of supporters watch a game that was so obviously corrupt for years.
I say tell SKY to feck off let’s get 3 o’clock kick offs on a Saturday back.