LIQUIDATORS from BDO have secured £24m for Rangers creditors after agreeing a settlement with Collyer Bristow, the lawyers who acted for Craig Whyte when he bought the club in 2011.
In a statement to creditors, BDO revealed that Collyer Bristow had agreed to settle the matter out of court.
“The joint liquidators are now able to advise that, following protracted negotiations subsequent to a mediation in June of this year, a settlement of the… claim has been concluded with Collyer Bristow,” the creditors report said. “The joint liquidators consider that the settlement represents an excellent outcome for the creditors of the liquidation estate.”
The proceeds will be used to part fund the ongoing defence of Rangers use of an employee benefits trust to remunerate its players and staff.
In August, HMRC was given the go-ahead to challenge a ruling that found that the corporate entity which formerly housed Rangers had legitimately used the scheme between 2001 and 2010 to pay £47.65m to players and staff in tax-free.
BDO also asked Duff and Phelps, the firm appointed as Rangers’ administrators, for “detailed explanations regarding certain aspects of the strategy implemented by them” during the administration.
“Once full explanations have been obtained, the joint liquidators will consult with their legal agents and the committee regarding what further action, if any, will be required in relation to the matter,” the report said.
Last week, three employees from Duff & Phelps and one employee from Collyer Bristow were arrested in relation to the sale of Rangers. Paul Clark, David Whitehouse and David Grier from Duff & Phelps, and Gary Withey, a solicitor who worked for Collyer Bristow, were detained during dawn raids across the UK and were later arrested.
The four men appeared in court charged with fraudulent activity following an investigation into the alleged fraudulent acquisition of Rangers FC in 2011. All four made no plea or declaration at Glasgow Sheriff Court and were granted bail ahead of a future hearing.