Rangers administrators boosted after court ruling

Duff and Phelps could consider ditching Ticketus payout after judge says that arrangement is purely contractual

26 Mar 2012 Accountancy Age

By Kevin Reed


ADMINISTRATORS FOR RANGERS believe the courts have boosted the club's future after a judge said that the rights for future season ticket sales or seats at the stadium are not held by Ticketus.

Lord Hodge said that Ticketus has contractual rights, which puts the administrators from Duff and Phelps in a position where they could potentially decide to refuse to honour the contract if that decision benefited creditors generally.

However, the judge refused to completely rip up the deal.

The £27m deal saw Ticketus gain rights to future season ticket sales. The cash injection was used by Craig Whyte to complete his takeover of the club and pay off bank debt.

In a statement, Ticketus said that given the strength of consortium Blue Knights' bid for the club and its own contractual arrangement with the Rangers, it does not see how administrators could fail to honour the deal.

"The court has made it clear today that the Ticketus contract cannot be breached unless there is substantial evidence that by doing so the administrators are able to significantly improve returns for creditors and improve the chance of returning the club to a going concern.

"Given the strength of the Blue Knights Consortium's bid, and Ticketus' role in this with its contract remaining valid and enforceable, we question the ability for this to happen."

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