Rangers Insolvency

The second aspect relates to the powers of liquidators. By rejecting the CVA, HM Revenue and Customs have signalled that they expect the liquidators to conduct a thorough, detailed investigation of the financial dealings of the club to determine whether anyone was responsible for the club going into administration and liquidation and, if so, who those people are. HM Revenue and Customs will be looking for the liquidators to take these people to court to compel personal contributions to the proceeds of the liquidation, increasing the recovery for creditors. Only by rejecting the CVA can such an investigation take place.

The recent offer to purchase Rangers made by Walter Smith has, not surprisingly, been withdrawn, following the omission of Rangers from next season’s fixtures list. It now remains to be seen what action the liquidators will take now, and whether there is the possibility of a sale of the club to an interested party who will pay a sufficiently large sum to appease HM Revenue and Customs.

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