Rangers Seeks CVA Administration Exit
Three of the four confirmed bids for Rangers are being considered by the administrator as it announces its intention to help the club exit administration by a Company Voluntary Agreement.
In a statement released this afternoon, Duff & Phelps partner and joint administrator David Whitehouse spoke of his optimism of the long-term future of Glasgow Rangers. He said: ‘We can now see light at the end of the tunnel whereby the club can exit from administration and focus upon success on the pitch. We also hope to announce next week acceptance of one bid, which would then be subject to a period of due diligence and exclusivity.
‘Following the bidding process, we believe that the most likely exit from administration will be the successful implementation of a CVA.’
The club’s biggest creditor is HMRC, with a ‘Big Tax Case’ of £75m at the first tier tax tribunal impending. The administrators however have ‘declined to comment at this stage of the process’ as to whether any of the three bids for the club currently being considered would assume responsibility for the significant liability owed to the taxman.
Whitehouse added: ‘The first objective of administration is to achieve the survival of the company as a going concern. In relation to the football club this can only be achieved via the exit from administration through a CVA. If a CVA could not be achieved, bidders have discussed with us the next best alternative being the sale of the business to a new legal entity which would continue to trade as Rangers Football Club.’
Selling the club as a new legal entity would lead Rangers facing both domestic and European football penalties.
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