Binder Dijker Otte, best known as BDO, have warned Charles Green that his newco plan is a non-runner.
Green’s plan for a £5.5m asset sale of Rangers into a new club has attracted criticism and concern with the Ibrox club having assets of £50m plus in terms of property and players.
HMRC announced today that they will not be accepting Green’s CVA proposal and that they will be appointing BDO to liquidate the company.
Green’s plans for a quick asset transfer to present a newco option to the SPL are now in tatters with BDO issuing clear instructions that their task is to maximise the return to the creditors from the club assets.
BDO partners Malcolm Cohen and James Stephen will be appointed joint-liquidators to the old company, although no timescale for when this will happen has been made available.
Cohen said: “Once BDO is formally appointed, the joint liquidators will be seeking to protect any remaining assets, maximise recoveries for the benefit of creditors, and investigate the reasons behind the failure of the company.
“It is right that there is a full and robust investigation into why the company failed, together with concerted efforts to recover monies for creditors and the taxpayer.
“This may include pursuit of possible claims against those responsible for the financial affairs of the company in previous years.”
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If a newco can be salvaged from the demise of Rangers it’s unlikely that they will be in a condition to apply to the SPL for membership with the liquidation of the club likely to lead to a number of legal battles.
It’s unlikely that the SFA would transfer any punishments such as a transfer embargo to a newco since as the name suggests it will be a new legal entity.
With Rangers going into liquidation their players will become free agents although their registration reverts to the SFA rather than a member club.
CLICK HEREÂ for Green vows to fight on after liquidation
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