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HMRC to reject Rangers' CVA proposal from Charles Green

Liam Barnett     on 12 Jun 12:24 pm     Football     611   0  

Source: Google

Her Majesty's Revenue and Customs will reject the company voluntary arrangement proposal made by prospective Rangers’ owner Charles Green.

Green's consortium hopes to have its CVA approved by creditors when they meet at Ibrox on Thursday so that the club can finally exit administration.

However, the club needs dominant creditors HMRC and Ticketus to vote in favour to avoid the assets being sold off.

Green will now look to try and buy the assets and re-form Rangers as a new club.

He said: "The solemn promise I can make to Rangers fans today is that this club will continue as Rangers Football Club and will continue to play at Ibrox Stadium.

"I am hugely disappointed by the decision of HMRC not to support the CVA proposal and that disappointment will be felt acutely by Rangers fans across the world.

"Frankly, I do not see what benefit will be achieved by this decision. My consortium's offer for a CVA amounted to a total of £8.5m.

"I can understand HMRC deciding that football clubs which do not pay their taxes need to be punished, but by effectively banning Rangers from Europe for three years all that will happen is that there will be less revenue generated by the club and consequently less money paid over to the taxman."

Rangers entered administration on 14 February 2012 and await the outcome of a First Tier Tax tribunal at the Court of Session in Edinburgh over unpaid taxes.

If the ruling decision goes against the club, it would mean a further bill of anything from £35m to £70m.

The club's total debts to unsecured creditors listed in the CVA was £55m, with HMRC accounting for £21.5m of that.

Chris McLaughlin (@BBCchrismclaug) has been a constant source in updating the public on the case via Twitter and he tweeted: “HMRC confirm to BBC Scotland that they want to liquidate #Rangers.”

“HMRC told #Rangers they have policy of not agreeing cva's with any company showing evidence of non compliance. #BBCSport”

Although Charles Green remains intent on finalising a deal to buy Glasgow Rangers Football Club, it remains to be seen if this famous old club will even be competing in the league it has won so many times, come next season.

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