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Rangers’ administrators arrange virtual creditor meeting

Duff & Phelps arrange correspondence only creditor meeting to discuss proposals to continue trading collapsed club

04 Apr 2012 Accountancy Age

By Rachael Singh

Rangers

DUFF & PHELPS administrators to collapsed Scottish football club Rangers FC will publish their proposals to save the club tomorrow, with a virtual creditors meeting to follow.

Paul Clark and David Whitehouse, both partners at Duff & Phelps, were appointed joint-administrators to the club on 14 February.

The initial creditors report and statement of proposals will be available to creditors by April 5.

Usually a creditors meeting involves creditors, administrators and the legal team discussing the proposals, creditors asking questions and approving the potential dividend payments and administrators remuneration package. However, the Rangers meeting will take place through correspondence only and will not discuss an exit from administration.

All football clubs in the UK must exit an administration using a Company Voluntary Arrangement (CVA). A CVA is an agreement to repay a portion of debt over a period of time, while allowing the business to continue trading. The process must have the support of at least 75% of creditors, by value, to be pushed through.

A statement from the Rangers' administrators said: "For clarification this is not a creditors' meeting at which a CVA will be proposed, nor will any other form of exit from administration be determined at this juncture. Such matters will be formally considered once the sale process has reached a conclusion."

Creditors votes on the proposals for the club to continue trading in administration must be submitted by noon 20 April.

 

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