No Clarity On Money Available To Fund CVA
Updated Tuesday, 29th May 2012
There is still a geart deal of uncertainty over the amount Rangers owe or how much Charles Green's consortium are willing to repay.
Clark said: "I can't give an absolute confirmation of the amount, the structure of the deal is sufficiently complex that we're not able to give a finite distribution. We've received, or we will receive an £8.5million contribution from the Green consortium. To add to that we will have the proceeds of litigation that are ongoing in various aspects, and also into the same pot we have outstanding player transfer fees. There will then be certain deductions for the cost of administering a CVA and then also the final moving piece is the fact that there is still uncertainty over the creditors claim because we still await the final result of the big tax case. This won't prevent the creditors voting on the 14th of June but it does mean that they won't know for certain what the distribution will be. What we have constructed is the best outcome for creditors."
Both Her Majesty's Revenue and Customs, who are due about £14million but possibly many times more, and investment firm Ticketus, who are owed £26.7million, could block acceptance of the CVA. Clark said: "We've been very closely discussing the issues with Ticketus and HMRC throughout the whole of the administration process but particularly over the last few weeks as it became apparent that a CVA was becoming ever closer, so we kept them fully informed and confirmed to them that the CVA represents the best deal for the creditors and it's for them really to cast their vote on 14th June but we're certainly hopeful of a positive outcome."
When questioned on the morality of not paying millions of pounds in tax, Clark said: "I certainly understand the point and of course this problem isn't just with football clubs, the CVA is a legally-binding deal and it represents the best deal for HMRC and the other creditors and therefore whilst it might mean that some monies are written off by the taxman it really is the best prospect of recovery and therefore we very much hope and believe that HMRC will see the same viewpoint."
Clark confirmed Green's consortium had a dual contract to allow him to push for a 'newco' purchase of the club's assets should the CVA fail. If creditors vote to accept the deal on June 14, the club could come out of administration on July 12, after a 28-day cooling-off period.