Scottish Third Division Rangers' Creditors Could See 50% Reduction In Money Owed
Scottish Third Division Rangers' creditors face a further reduction in the money owed to them by the club after liquidator BDO and two law firms lodged a claim totaling nearly £1M ($1.5M), according to the SCOTSMAN. The trio of companies have made the bid "after claiming five months' worth of work for winding up the old company last year." If the application is successful, "it will reduce the creditors' pot" from £2.27M ($3.4M) to around £1.3M ($2M) (SCOTSMAN, 5/29). The HERALD SCOTLAND reported the "money available to those left out of pocket by the collapse could be reduced by a further 50% if further legal costs are taken out." BDO has warned the liquidation "might not be closed for a considerable time because of outstanding legal cases, adding further concern about costs." The move brought to an end the period of administration by Duff & Phelps. Former Rangers Owner Craig Whyte began the process after U.K. tax authority HMRC lodged a petition "over the non-payment of millions of pounds of tax" (HERALD SCOTLAND, 5/29).