Oldco Rangers enter liquidation

  • Last Updated: October 31 2012, 20:21 GMT

Oldco Rangers have formally entered liquidation after the move was approved by a senior judge.

Oldco Rangers enter administration

Insolvency firm BDO has been appointed to wind up the company, now known as RFC 2012 plc.

The move brings to an end the period of administration by Duff and Phelps, which began in February this year.

The Glasgow club went into administration after the taxman lodged a petition over the non-payment of tax to the tune of millions of pounds.

Liquidation was given the green light by judge Lord Hodge at the Court of Session in Edinburgh, after a day-long hearing on the issue.

Duff and Phelps had gone to the court themselves, seeking an order to end the firm's time as administrators and asking for the oldco to be handed to liquidators.

The court heard that the move, opposed at this stage by lawyers Collyer Bristow, would involve the handover to liquidators of £1.7million in cash and other assets.

The club was consigned to liquidation in June when HM Revenue and Customs (HMRC), who are owed up to £94 million, rejected an offer to creditors.

Duff and Phelps sold the business and assets of Rangers to a consortium fronted by Charles Green for £5.5 million when the Company Voluntary Arrangement was rejected.

The sale relaunched Rangers on the pitch while the original company, renamed RFC 2012, headed for liquidation.

Earlier this month, Duff and Phelps revealed that creditors had approved the end of the administration process.

It is understood that Malcolm Cohen and James Stephen of BDO have now been appointed joint interim liquidators. Part of their role will be to work to recover funds for creditors.

Duff and Phelps have previously stated that liquidation will not affect the current operations of The Rangers Football Club in any way. The new club, which is in the Irn-Bru Third Division this season, is a "completely separate entity".

During today's hearing, Lord Hodge said he was "very concerned" that allegations were being made about the oldco's administration by Duff and Phelps.

He said he has asked the BBC for material centred around their claims and raised the prospect of the information being made available to the Insolvency Practitioners Association (IPA), which is looking into allegations of a possible conflict of interest.

The judge said: "I think I should make it clear I have asked the BBC to provide me with a DVD of their allegations both in May and October and I may be requesting them to give me a transcript of the entire telephone conversation so that I can see it in context.

"It seems to me that it should be made available to the IPA."

The judge said he might have to make a court order to request the transcripts, but would give the broadcaster a chance to be represented at any hearing.

"I'm very concerned that allegations are being ventilated which call into question the probity of proceedings," he said.

Duff and Phelps has insisted that its conduct of the Rangers administration was carried out to the "highest professional standards".

Paul Clark, joint administrator, said in a statement tonight: "We are pleased that the Court of Session has approved the completion of our duties as administrators at Rangers, and the process of liquidation will begin.

"As administrators, our primary function was to keep the business going and effect a sale of the Club in order that it could continue, while maximizing the return for the creditors. These objectives were achieved. It will now fall to the liquidators to realise any further potential funds that may go to creditors. We have worked closely with the liquidators over the last few months to ensure an orderly transition.

"I would like to thank the staff at Rangers and many of the playing staff whose efforts during the administration process helped ensure the Club kept going despite extremely difficult circumstances. I also thank the fans for their patience during this difficult process. Finally I wish the very best for Rangers under their new owners and the fans who have been unstinting in their support for the Club."


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