08 Feb Rangers take legal action
The liquidators of the Rangers oldco are taking a near £30million legal action against the club’s former administrators.
The action against Paul Clark and David Whitehouse, of Duff & Phelps, is over “questions … regarding the strategy previously adopted by the former administrators, which have not, to date, been adequately answered”, liquidators BDO said.
Mr Clark and Mr Whitehouse were appointed joint administrators of Rangers in February 2012.
Duff and Phelps sold the business and assets of Rangers to a consortium fronted by Charles Green for £5.5million in June of that year with insolvency firm BDO appointed to wind up the oldco.
Mr Whitehouse said he was “surprised” by the action which comes one week before a period of limitation expires.
BDO is seeking £28.9million in the legal action, the company confirmed.
A BDO spokesman said: “The joint liquidators, following extensive deliberations with their professional advisors and the liquidation committee, have taken the decision to issue a claim against the former Rangers’ administrators Paul Clark and David Whitehouse, of Duff & Phelps.
“During the course of the liquidation, questions have arisen regarding the strategy previously adopted by the former administrators, which have not, to date, been adequately answered.
“In seeking clarity, the joint liquidators have been left with no other option but to pursue the matter via the Scottish Court.
“The joint liquidators look forward to the resolution of this matter.”
Mr Whitehouse, Duff & Phelps managing director, said: “We were surprised to receive notice of proceedings today, one week before expiration of the limitation period, and we are disappointed that this has been leaked to the media.
“In essence, BDO is now alleging that as the former administrators we should have achieved a better return for creditors by selling the club’s assets on a piecemeal basis, including Ibrox and its playing squad.
“This is a strategy with which we fundamentally disagree both in terms of its deliverability and its relevance to achieving the statutory purpose of administration. We will be consulting with our legal advisers in order that our position is set out fully before the court.
“Any further comment at this stage would be inappropriate given that there are now live proceedings.”