14th February 2012
Statement from Duff and Phelps on Rangers Football Club
Duff and Phelps has been engaged by the directors of The Rangers Football Club plc (RFC) to assist its negotiations with HMRC, and possible restructuring options.
As a result the inability of RFC to conclude negotiations with HMRC the board of directors have filed a notice of intention to appoint administrators.
The purpose of this notice is to provide a moratorium against potential creditor actions.
Meetings are due to take place with HMRC in relation to the tax position of the company.
Management remain hopeful that with the assistance of HMRC a consensual and solvent solution can be found. In the meantime RFC is continuing to trade as usual.All further enquires should be addressed to RFC press office.
14th February 2012
Duff & Phelps appointed Administrators of Rangers Football Club
Paul Clark and David Whitehouse, both of Duff & Phelps, the corporate financial advisory firm, have been appointed Joint Administrators of Rangers Football Club, as of today, 14th February 2012.
The appointment follows a petition for administration presented to the Court of Session in Edinburgh today by HMRC following the non-payment of circa £9m PAYE and VAT following the takeover of the Club in May 2011.
Paul Clark, partner, Duff & Phelps stated: “HMRC have been working closely with the Club in recent months to achieve a solution to the Club’s difficulties. However this has not been possible due to ongoing losses and increased tax liabilities that cannot be sustained,”
“We are working together with management and its major creditors including HMRC to achieve a solution to the financial problems which will ensure the ongoing survival of the business, which is of paramount importance to all concerned,” he added.
Paul concluded: “We would like to take the opportunity of thanking the fans for all their past and present support and hope we can rely on them in the future. Rangers has a long and proud sporting tradition – one we all wish to see continue. All stakeholders involved with Rangers are working hard to ensure the long-term future of this national institution. We will be making a further more detailed statement later in the week,” he added.
15th February 2012
RANGERS ADMINISTRATORS’ UPDATE
Paul Clark and David Whitehouse, of Duff and Phelps, said: “We can report we have made very good progress within the first 24 hours of being appointed administrators over Rangers Football Club.
“Our first priority has been to ensure that the football club continues to function and this is being achieved with the help of staff, players and management at the Club.
“In particular, we would like to thank the Club’s business partners who are going the extra mile to ensure that Saturday’s home match against Kilmarnock goes ahead as scheduled. We had extremely constructive discussions with Strathclyde Police and we can confirm the match will take place.
“We fully recognise this is a difficult time for players and staff at the Club and are extremely appreciative of their reaction to the situation. We will be holding meetings with the staff on a weekly basis at least to inform them of developments.
“We are also in the process of speaking to representatives of supporters’ groups and that will be an ongoing process.
“In broad terms, supporters can be reassured that Rangers will continue as a football club and we hope to reach a stage as soon as possible where the Club can emerge from administration.
“We have had expressions of support across the political spectrum in Scotland within the last 24 hours and there is clearly a desire to see Rangers come through this situation successfully.
“The Club has, however, taken the decision to postpone the Hall of Fame Dinner and Awards Ceremony scheduled for this Sunday (19 February, 2012) at the Glasgow Hilton as holding the event at this time was not considered appropriate.
“The event will be rescheduled for a later date and all table sales and sponsorship commitments will be honoured at that time. Rangers would like to apologise for any inconvenience caused to supporters, sponsors and clients and we will ensure details of the rescheduled event will be communicated as soon as possible. The Club would also like to thank the Glasgow Hilton for their understanding.
“If anyone has booked places or a table at the event and have any questions, the Events Department can be contacted on 0141 580 8613.
“There had been widespread publicity and speculation regarding the financial affairs of the football club.“For clarity, the cost structure of the Club and ongoing losses were such that the Club had outstanding liabilities to HMRC. These were the subject of discussion and clearly HMRC wished to see them resolved as a matter of urgency. We are involved in dialogue with HMRC and will work with them constructively, as is the case with all other key stakeholders.”