Rangers' administrators upbeat over CVA proposal

Rangers' administrators have told BBC Scotland they are still unable to reveal details of their company voluntary arrangement proposal.

Duff & Phelps have been preparing a pence in the pound offer since Charles Green agreed a deal to buy Rangers.

However, joint administrator Paul Clark says he is optimistic the two biggest creditors will agree to the CVA being sent out on Tuesday.

"We very much hope it will be accepted," Clark told BBC Scotland.

HMRC and the finance firm Ticketus are owed a total of £41.1m, although the Ibrox club's tax liabilities could rise to £93.4m should the club fail to win its appeal against the so-called "Big Tax Case" at the Court of Session in Edinburgh.

However, if agreement cannot be reached among creditors owed 75% of the debt, it is likely Green's consortium would attempt to relaunch the club by transferring its assets to a new company.

Green's offer pledged £8.5m with another £3.5m coming from transfer fees due to the club. Legal claims against majority shareholder Craig Whyte's lawyers could provide further funds.

However, Clark was unable to confirm reports that the CVA would be 20p in the pound and insisted there was sufficient funds to cover the arrangement.

"I still can't give an absolute confirmation of the amount," said Clark.

"The structure of the deal is sufficiently complex that we are unable to give a finite distribution.

"We will receive - or we will receive - £8.5m contribution from the Green consortium. To add to that, we will have the proceeds of litigation that are ongoing and also into the same pot, we have outstanding player transfer fees.

"There will then be certain deductions for the costs of administration, then the final moving piece is the final result of the Big Tac Case, so there's quite a few moving parts.

"This won't prevent the creditors from voting, but it does mean they won't know for certain what the distribution will be."

Rangers' debts are estimated at between £55m and £135m, with much of the unconfirmed difference related to an ongoing tax tribunal.

That tribunal and a separate Scottish Premier League investigation concern how Rangers paid their players over a decade-long period.

BBC Scotland has learned Ticketus, the firm whose cash advance was used to fund Whyte's takeover of Rangers last year, have received notice of the CVA proposal.

In a statement on Monday, the joint administrators said details of the CVA proposal had been finalised and there had been "additional consultation with certain stakeholders", but that publication of the document would be held off until Tuesday.

The statement also read: "Rangers supporters should be reassured the CVA process is on track. The creditors' meeting to consider, and hopefully approve, the CVA will be held on Thursday 14 June."

Should the CVA be approved at the creditors meeting, a 28-day cooling-off period would ensue before Rangers could come out of administration.

Players and management agreed wage cuts in March to allow Rangers to fulfil their remaining season 2011/12 fixtures but contracts revert to full pay in June with additional clauses allowing players to leave for reduced fees.

Clark also said that discussions had taken place with Ticketus and HMRC "throughout the whole administration process, but particularly in the past few weeks as it became apparent that a CVA was getting ever-closer."

He added: "We've confirmed to them that the CVA represents the best deal for the creditors. It's really for them to cast their final vote no the 14 June, but we're certainly hopeful of a positive outcome.

"The CVA as a legally binding deal will provide all creditors in their class with the same distribution, so they will all get treated the same.

"It represents the best deal for HMRC and the other creditors, and while it might mean there's some monies written off by the taxman, it's the best prospect of a recovery, and therefore we very much hope and believe that HMRC will see the same viewpoint."

Meanwhile, the SPL has granted Rangers "a period of grace" after the club missed the deadline for filing financial documents.

The Ibrox club have until Friday 15 June to provide documentation to the league or they could face sanctions.

"The matter will be reviewed further at that time," said an SPL spokesperson.

Rangers, who suffered their insolvency event in February, missed the March deadline for submitting accounts to Uefa, meaning they will not play European football next season.

And the financial documents sought by the SPL are required for participation in next season's top flight.