Rangers had £480k of their assets frozen yesterday after a judge decided that there was a real risk of the club becoming insolvent if they lost their case against the taxman. This is on the top of the £2.3m apparently already frozen in relation to the smaller of two tax claims from Revenue and Customs.
Rangers had £480k of their assets frozen yesterday after a judge decided that there was a real risk of the club becoming insolvent if they lost their case against the taxman. This is on the top of the £2.3m apparently already frozen in relation to the smaller of two tax claims from Revenue and Customs.
The leaked legal submission in the case involving former chief executive Martin Bain asserts that Rangers owner Craig Whyte has said privately that he would handle a bill up to £15m, but after that the club would go under. He is the club’s main creditor after he took over the £18m debt formerly held by Lloyds Banking Group.
There has been speculation that Craig Whyte could choose the push the club into administration, and as lead creditor, could buy it back without its other debts. Such ‘prepack’ deals have not been uncommon in the recession. However, they are increasingly being challenged by other creditors and it would also involve a points deduction.
Revenue and Customs could also pursue its case against Rangers post-administration even if it had little chance of recovering its money if only to set a legal precedent for others who have used offshore vehicles to pay employees. And if the taxman became the largest creditor, having won the tax dispute, then Revenue and Customs would be in the driving seat in determining who controlled the club when it came out of administration.