Creditors of oldco Scottish Premiership side Rangers will reportedly be offered less than 4 pence to the pound, while the liquidators and big law firms have been paid more than £12M, according to Keith McLeod of the Scotland DAILY RECORD. Calling it "an insult," one small creditor said on Wednesday, "It is a feeding frenzy for lawyers and accountants while the small creditors get a tiny fraction of what they are owed, and it has still not been paid." Legal firms have already received about £9.2M, while the "rolling bill" for liquidator BDO stands at £3.4M. The "financial meltdown" of the Ibrox club in '12 -- with debts of £134M -- "has sparked a frenzy of legal actions." Documents show that "unsecured creditors of oldco" have been told they may get an "interim dividend" of 3.91p to the pound. But that is in "stark contrast" with BDO, the company charged with processing oldco’s assets, which through June of this year has earned fees of £3,386,000. And "unlike the unsecured creditors, the big lawyers have already been paid." London law firm Stephenson Harwood received fees of £7,080,329 and outlays of £646,198. Edinburgh-based Brodies solicitors received fees of £1,307,415 and outlays of £114,367. The small creditor said, "We have waited more than five years and we'll probably have to wait even longer to get anything." One financial expert said, "It was always going to be realistically single digits in the pound for creditors. Frankly, that is because of the size of the debts" (DAILY RECORD, 11/2).
