Rangers FC faces liquidation says would-be purchaser
Rangers Football Club faces liquidation after British tax authorities rejected proposals to let it exit administration, according to Charles Green, who is leading a group to buy the Scottish soccer club.
HM Revenue & Customs refused to support a proposal by Green’s group to pay creditors £8.5 million as part of a Company Voluntary Arrangement that would have seen the club come out of bankruptcy and avoid winding up, Green said in a statement on Rangers’ website.
“I am hugely disappointed by the decision of HMRC not to support the CVA proposal,” Green said. “I do not see what benefit will be gained by this decision.”
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Rangers owes the tax authorities more than £93 million in unpaid taxes and two unresolved claims over the use of employee benefit trusts. In total, the 54-time Scottish soccer champion owes creditors more than £134 million pounds, administrators Duff & Phelps said on April 5th.
The tax office said winding up Rangers in its current form will allow a new company to start without any burden.
“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,” HMRC said in a statement on its website. “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.”
Creditors are due to meet on June 14 to vote on the CVA proposals. HMRC’s rejection means they are all but sure to fail.
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