By Andrew Warshaw
May 14 – Crisis-torn Scottish giants Glasgow Rangers look to have finally been saved from potentially going out of business after a deal to take over the iconic club was struck between the administrators and an international consortium headed by Charles Green, former chief executive of Sheffield United.
Green (pictured above and below, right) has made an £8.5 million ($13.7 million/€10.6 million) bid and hopes Rangers can soon exit administration through a Company Voluntary Arrangement (CVA) in order to retain the club’s distinguished history.
Administrators Duff and Phelps, who have had several potential bids from other parties knocked back in recent weeks, confirmed the latest one had been accepted.
“Mr Green has secured, via a substantial financial commitment, a period of exclusivity to complete the purchase of the club and this is expected to be finalised at a creditors’ meeting on 6 June,” said administrator David Whitehouse (pictured below, left).
“The structure and quantum of the offer from Mr Green is such that it is acceptable to us as administrators and, having been in discussions with major creditors throughout the process, we believe this presents the best prospect of financial recovery for creditors.
“If the creditors do not approve the Company Voluntary Arrangement, the agreement obliges Charles Green’s purchasing vehicle to acquire the business and assets of the club on agreed terms, through a newco structure.
“It is Mr Green’s strong preference to achieve a CVA.”
Green disclosed that the consortium involves 20 individuals from Asia, the Middle East, Far East and Britain.
“This is a great football club with a tremendous history and we will preserve that while building a solid platform for the future,” he told a briefing.
“Rangers supporters have every right to believe their club should be a success on and off the pitch and that is exactly what we will strive to achieve.”
Green has purchased previous owner Craig Whyte’s 85 per cent shareholding in Rangers, revealing he had moved to rescue the debt-hit club last week before American tycoon Bill Miller withdrew, citing a worse-than-expected set of financial figures and inhospitable fan reaction.
Since Miller pulled out, the Blue Knights consortium led by former director Paul Murray, and Sale Sharks rugby club owner Brian Kennedy had hoped to be named preferred bidder.
However, Green’s late bid proved to be more attractive to the administrators, whose role was to secure the best deal after Rangers slid into administration on February 14.
Rangers, 54 times Scottish champions, are ineligible for European participation next season but Green insists he has no plans to generate cash through sales of players, who agreed wage cuts early on in the administration process.
“You won’t always like what you hear from me but you’ll definitely get the truth and you’ll know exactly what our team are planning to do,” Green added.
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