Rangers administrators have revealed the club owes at least £55m and is facing a further tax bill of up to £79m.
The full list of creditors and debts owed by the Ibrox club has been set out in the report by Duff and Phelps, with the club's total debts reaching £134m.
On Thursday, the report released by the insolvency firm revealed that Rangers have been running at a "substantial cash shortfall" since being plunged into administration on February 14, with the club owing money to 276 creditors.
The total revealed by the administrators includes £55m in confirmed debt and factors in a further £75m, their predicted cost of Rangers losing the 'big' tax case, as well as a debt of around £4m for the 'wee' tax case.
Despite previous claims that he was "irrelevant", the report reveals owner Craig Whyte is still the key player in the club's future. He owns an 85% controlling stake in Rangers and, crucially, holds a floating charge over the assets meaning he would be paid any money coming into the club before unsecured creditors such as HM Revenue and Customs.
Administrators admit that any sale will be dependent on "the prospective purchaser and the ability to obtain control of RFC Group's majority shareholding." Rangers FC Group is owned by Craig Whyte and has an 85% stake in the club. Mr Whyte’s company Liberty Corporate has also taken out a floating charge over the group, which may ensure he receives the proceeds of any sale of shares before other creditors.
The amount the club in administration owes its parent company, Mr Whyte’s Rangers FC Group, has not been clarified by Duff and Phelps. In their report they said: "The joint administrators have sought to clarify the level of indebtedness, if any, due to RFC Group in respect of this charge and are liaising with RFC Group in respect of this matter. Creditors will be provided with an update in due course."
Duff and Phelps also highlighted in the report their duty to investigate whether there have been any transactions to defraud Rangers creditors and noted that their investigations into the club's financial situation is ongoing.
The 'wee' tax case with HM Revenue and Customs is in relation to the discounted options tax scheme used by Rangers under Sir David Murray, prior to the employee benefit trust being implemented from 2001 to 2010, which is the subject of the 'big' tax case that administrators estimate could leave them with a bill of £75m.
Administrators said the estimated £4m 'wee' tax case centred on the use of the tax scheme to pay players Tore Andre Flo and Ronald De Boer between 2000 and 2003.
The money owed to HMRC over unpaid PAYE and national insurance since Mr Whyte’s takeover last May sat at £14.3m on March 31, according to the administrator’s report.
Administrators also said they could still tear up the £25.3m Ticketus deal if they considered in the interest of the creditors as a whole. This could leave them open to "a claim for damages against the club for breach of contract" by Ticketus, however they believe this would "rank as an ordinary unsecured claim in the administration." They said there may be further legal action regarding the deal.
So far, administrators say Ticketus has been paid £8m in liabilities owed by it to the club. The first instalment of £3m was in June 2011 followed by an additional payment of £5m in September. The £55m figure calculated by Duff and Phelps includes a £26.7m claim from Ticketus for season tickets, which is to be confirmed as the deal struck by Mr Whyte has not been reneged on by administrators yet.
In the report released on Thursday, administrators confirmed they had already held several meetings with HM Revenue and Customs about "the progress" and "likely exit routes from administration."
Up until March 31, Duff and Phelps have accumulated fees larger than the amount of money Rangers have earned during that time. Administrators claim their time costs are £1.1m. From their appointment on February 14 until the end of March, Duff and Phelps say Rangers have taken in just over £1m.
Almost 300 creditors
Close Leasing is a secured creditor under the administration after it provided new equipment for Ibrox kitchen upgrades in a deal Mr Whyte secured against income from the catering contract at the stadium.
In the report, Duff and Phelps said "indebtedness to Close Leasing Limited was approximately £1.6m, subject to accruing interest and charges" and discussions are continuing over repayment of this.
Among the extensive list of unsecured creditors at Rangers are former owner Sir David Murray’s company Murray Group Holdings, which has £278,964.30 outstanding, while current owner Mr Whyte’s solicitors Collyer Bristow are owed more than £40,000.
Sir David's Premier Property Group, which was granted two standard securities over the Albion car park in Broomloan Road by Rangers, is listed as being owed more than £103,000 in the report.
PR firm Media House is owed more than £19,000 by Rangers, while Strathclyde Police are owed around £51,000 and security service G4S, which works at Ibrox games, is due over £295,000. JJB Sports, which struck an £18m ten year deal with Rangers as official kit seller in 2006, is owed £19,390, while the club also owes the John Deere firm, which supplies machinery for looking after the Ibrox pitch, more than £40,000.
Included in the list released on Thursday is £12,600 owed to Premier Cash Registers in Glasgow, and more than £520,000 is claimed by Azure Support Services, which provides catering at Ibrox. The Scottish Ambulance Service, which provides medical staff during games at Ibrox is listed as being owed £8438, Shred-it Glasgow is owed £444 and Scottish Hydro Electric is included in the report as an unsecured creditor for more than £62,500.
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