Tuesday, June 12, 2012

Tuesday Rangers Update: HMRC Rejects Settlement Terms

((HT: STV News))

What both Rangers administrators Duff and Phelps and new owner Charles Green were looking for was an agreement with HMRC (the Crown's version of the IRS) where a Company Voluntary Agreement (CVA) would settle the team's debts at a percentage.

HMRC didn't go for it. That now means that liquidation will probably be the only resolution for the unpaid tax bill the team has and the "new" Rangers will be a "newco" set-up under a new corporate structure.

So, here's the next step...


Paul Clark, Duff and Phelps joint administrator, said: "It was a very disappointing day but we must deal with these things and move on.

"I can understand where this has come from, the position that HMRC have taken throughout is that until the final proposal was put to them they wouldn't confirm for sure whether they would vote in favour or against.

"They saw a proposal in a draft format and agreed it should be circulated.

"We were very hopeful because it showed the best possible financial result for creditors that vote in favour but they decided because of the delinquent tax debt from the past that on this occasion they were not prepared to vote in favour.

"So the decision was to reject the CVA on Thursday.

"This wasn't about personalities, we've had that absolutely confirmed by HMRC, it's also not about the fact they can't be certain as to what their debt is.

"Of course the big tax case has still to be decided, we still don't have the tribunal decision. We did make sure it wasn't just a case of timing or individuals and they confirmed to us that that is the case."


Here's the text of a Charles Green interview with Rangers TV about the challenges of the new era at Ibrox:

"One of the frustrations I have is we've spent a week explaining to people who believed we were using season ticket money to buy the club that that wasn't the case.

"There is a huge amount of negative energy being spent and what we have to do now is say that these are the cards we've got, not what we'd like or where we wanted to be.

"We need to say what we have, get behind it and move forward and after the CVA proposal is formally rejected on Thursday as you'd expect, I'll name my investors.

"We'll reveal who is on the board, what the names of the directors are and all of the things the fans, the SFA and the SPL are looking to see.

"The consortium's capabilities are not affected at all. There's obviously a reduction of £3million in price but we'd more than happily have paid the higher price.

"The support, commitment, willingness and ambition of the investors are all still there to take this club forward.

"The history of Rangers is not going to disappear just because HMRC decided to do an about turn on what they have been suggesting over the last few weeks.

"This club's history and traditions are based around its fans, their support and their loyalty and we're going to ensure the new structure preserves that."

No comments:

Post a Comment