Rangers Football Club's CVA Proposal To Be Rejected

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Her Majesty`s Revenue and Customs have told Rangers they will vote against a Company Voluntary Arrangement.

Charles Green, who is leading the Sevco consortium aiming to acquire the club, confirmed the news on Tuesday morning.

HMRC's no vote is enough to deal a fatal blow to the CVA proposal and Green will now push ahead with plans to buy the club's assets and form a new company.

Green said in a statement: "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."

HMRC, who are currently owed more than £21million, believe their decision to force liquidation will allow them to pursue individuals for the debt.

A statement from the tax authority read: "A liquidation provides the best opportunity to protect taxpayers, by allowing the potential investigation and pursuit of possible claims against those responsible for the company's financial affairs in recent years. A CVA would restrict the scope of such action.

"Moreover the liquidation route does not prejudice the proposed sale of the club. This sale can take place either through a CVA or a liquidation. So the sale is not being undermined, it simply takes a different route.

"Liquidation will enable a sale of the football assets to be made to a new company, thereby ensuring that football will continue at Ibrox.

"It also means that the new company will be free from claims or litigation in a way which would not be achievable with a CVA.
"Rangers can make a fresh start."

More to follow...

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