The liquidation of Rangers Football Club is heading to court with BDO raising a £28.9m action against Duff & Phelps.
Craig Whyte appointed Duff and Phelps as administrators ahead of HMRC bringing in their own administrators in February 2013.
Led by David Whitehouse and Paul Clark Rangers were able to strike a deal with players to cut wages in return for free transfers at the end of the season and managed to get the club through till the end of the season without any real sign of austerity. At one stage Duff & Phelps tried to add to the costs by signing Daniel Cousin!
Once their CVA was rejected by HMRC ‘a basket of assets’ was sold to Charles Green for £5.5m. Within six months of going into liquidation Green was valuing Ibrox Stadium and Murray Park at £80m and raised £20m from a share issue.
Had the property assets been auctioned off they would almost certainly have raised more than £5.5m which could have been put into the creditors pot which covered 276 victims including public bodies, taxi firms and florists as well as HMRC.
BDO are making a claim for £28.9m from Duff and Phelps stating: “The joint liquidators, following extensive deliberations with their professional advisors and the liquidation committee, have taken the decision to issue a claim against the former Rangers’ administrators Paul Clark and David Whitehouse, of Duff & Phelps.
“During the course of the liquidation, questions have arisen regarding the strategy previously adopted by the former administrators, which have not, to date, been adequately answered.
“In seeking clarity, the joint liquidators have been left with no other option but to pursue the matter via the Scottish Court. The joint liquidators look forward to the resolution of this matter.”