Rangers crisis: Creditors in limbo as CVA proposal fails to materialise

Rangers' creditors are still awaiting details of a reduced payments offer that could allow the club to come out of administration.

Administrators Duff and Phelps had stated a Company Voluntary Arrangement (CVA) proposal was likely to be sent out on Monday but it was not forthcoming by the end of the business day.

The initial plan when Charles Green's Sevco consortium signed a deal to buy the club had been to finalise the document on May 21 and hold a creditors meeting on June 6, but the letter is now more than a week later than scheduled.

Creditors need at least two weeks to consider the proposal, with a 75% majority needed to pass the plan. There would then be a further 28-day cooling-off period before Rangers could come out of administration.

The fate of any offer effectively lies in the hands of both investment firm Ticketus, who are owed £26.7m, and Her Majesty's Revenue and Customs, who are due at least £14m but potentially several times more.

Green's group have pledged £8.5m with another £3.5m coming from transfer fees due to the club. Litigation over Craig Whyte's takeover deal could provide further funds at a later date.

The delays mean Green's group could have to fund a £1m-plus monthly trading loss when the players revert to their normal wages on Friday after accepting cuts of up to 75% for three months.

Rangers are also open to losing key players for reduced fees after the transfer window opens, also on Friday, as several negotiated exit clauses in their varied contracts.

The Blue Knights consortium, who saw their offer for the club rejected, claimed a CVA needed to be sent out on May 12 when they withdrew from the process 24 hours earlier.

Former Rangers director Paul Murray said then: "We see the only way forward for the club is to effect a CVA and unfortunately time has run out.

"There is no time left to effect a successful CVA and to exit the club in a healthy capacity from that process."

If no CVA is agreed, Green plans to push through a newco purchase of the assets which would leave him needing to apply to the Scottish Premier League to take the current club's place in the competition.

Meanwhile, the administrators have another deadline to work towards after it emerged they were handed an extension by the SPL over financial disclosure requirements.

Rangers, whose debt could top £134m when a tax tribunal is decided, have not produced audited accounts, which were due by the end of 2011.

An SPL statement read: "Rangers FC made an application for a period of grace in terms of SPL Rule A2.7 in which to provide certain documents required by the SPL financial disclosure requirements.

"The SPL board granted a period of grace until Friday, June 15, 2012 for the documentation to be provided. The matter will be reviewed further at that time."

Rangers face more key events in the next 48 hours with their legal challenge against the Scottish Football Association's 12-month transfer ban due to continue in the Court of Session in Edinburgh on Tuesday.

SPL clubs will gather on Wednesday for a meeting where they are scheduled to decide on financial fair play proposals, although a vote has been adjourned twice previously.

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