Administrators to begin work at Rangers

STV

Administrators are to begin work evaluating Rangers following conformation on Monday that the club filed court papers signalling their intention to go into administration.

The Ibrox club lodged the notice at the Court of Session in Edinburgh at lunchtime on Monday.

The club said the tax bill it faces from HM Revenue and Customs could be "substantially more than the £50m reported" which the club would be "unable to pay".

They now have ten business days in which to declare administrators have taken over the running of the Glasgow-based club.

This period allows the company to speak to creditors to see if they reach an agreement. If they enter administration the Scottish Premier League champions will automatically be docked ten points.

Rangers said it could be a full ten working days before a decision is made whether to proceed with the appointment of administrators.

In a statement, the club said: "The Rangers Football Club plc has today announced it has filed a notice of intention to the Court of Session in Edinburgh to appoint administrators.

"The club will conduct its business as usual and will not be in administration until it decides whether to formally proceed with an application to appoint administrators.

"Until such time, the club will not face any sanction from the football authorities in terms of points deduction within the Scottish Premier League.

"Sanctions such as a ten-point deduction will only apply if the club proceeds with the appointment of administrators. It is expected to be ten working days before a decision is made whether to appoint administrators."

Rangers admitted defeat in the tax case could leave them with a bill of "substantially more than the £50m reported, which the club would be unable to pay".

The statement added: "The club is continuing to have dialogue with HMRC in the hope that a formal insolvency procedure can be averted and has put forward pragmatic proposals.

"The club's owners believe there is no 'realistic or practical' alternative to this course of action in order to secure the long-term future of the club.

"Should administration take effect, the club is proposing a Company Voluntary Arrangement (CVA).

"The club wishes to seek the protection of a moratorium from HMRC action whilst a CVA proposal is made to creditors. The club has put forward a CVA proposal to HMRC in which creditors would be paid and provision made for the legacy HMRC case, commonly known as the 'big tax' case.

"This, if approved by creditors within a month, would minimise any points deduction and enable the club to participate in European football next season."

Whyte continued to point to decisions made before he took over as the ultimate causes of the action.

He said: "It is extremely disappointing the club finds itself in this position but decisions have to be taken to safeguard the long-term survival and prosperity of the club both on and off the field.

"The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago.

"If we do not take action now the consequences and the risks to the club are too great.

"In addition to the HMRC issues, it has been abundantly clear to me the club faces serious structural and financial issues which will continue unless they are addressed.

"There is no realistic or practical alternative to our approach as HMRC has made it plain to the club that should we be successful in the forthcoming tax tribunal decision, they will 'appeal, appeal and appeal again' the decision.

"This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC.

"Even if the club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen.

"Whilst it appears that a consensual restructuring looks unlikely outside of a formal insolvency procedure, the above steps, if agreement cannot be reached with HMRC, will bring an end to the legacy threat of closure and will provide stability required to enable the required investment to be made into the future of the club.

"I can, however, reassure Rangers supporters that the club will continue and can emerge as a stronger and financially fitter organisation that will compete at the levels of competition our fans have come to expect."

Scotland's Sports Minister Shona Robison said: "I understand that Rangers and HMRC are continuing dialogue and we obviously want to see an agreement which will protect jobs and enable the club to stay in business.

"Rangers is a crucial part of Scotland's national game and our interest is ensuring that a resolution can be arrived at between HMRC and the club to deliver these vital objectives."

Scottish Labour's spokeswoman on sport, Patricia Ferguson MSP, said: "Rangers are one of the oldest football clubs in Scotland and it would be a sad day for Scottish football if after over 130 years the club was to be wound up.

"We must not forget that there are a lot of jobs at stake and this must be a deeply worrying time for all those employed at Rangers Football Club.

"I very much hope that for the sake of the game, the jobs and economic impact this could have, the club resolve their difficulties."

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