Jump to content

Whyte's Lawyers in bankrupt scare


nvager

Recommended Posts

Herald Article

Whyte's lawyers in bankruptcy fear

Victoria Weldon and Helen McArdle

THE law firm at the heart of Craig Whyte's Rangers takeover could face bankruptcy if a legal ruling forces it to pay out millions of pounds for its involvement in an alleged sham investment scheme.

The revelation comes as Rangers players prepare to learn their fate, with the administrators expected to outline the toll of redundancies on the squad today.

Solicitors Collyer Bristow – the London-based firm Whyte hired to oversee his purchase of Rangers last year – are awaiting a court decision as a joint defendant in the £50 million case, which has been raised at the High Court in London by 500 investors. The claim against the firm concerns a complex investment scheme, known as Innovator One.

However, it has been alleged the initiative – a tax-advantage vehicle which Collyer Bristow is accused of promoting – was a fraudulent scam and certain legal conditions were never fulfilled.

The company is alleged to be liable for any dishonest conduct of the individuals who organised the scheme. It is also accused of acting negligently and breaching both contract and fiduciary duties. A four-month hearing on the case ended last month and a ruling is due later this year.

There are concerns that if the firm loses the case it will have insufficient funds to cover potential losses, amid claims of negligence by its insurance broker, Lockton Companies International.

Collyer Bristow has since launched another legal action against Lockton in a bid to ensure the money will be available if it is forced to pay out.

The solicitors alleged Lockton failed to put adequate insurance cover in place during the period of the Innovator One claims. The law firm claims it could be on the brink of collapse if it does not resolve the shortfall. A full hearing on that issue will be heard in May.

Meanwhile, administrators Duff and Phelps are expected to make an announcement on staffing levels at Rangers today, amid speculation some first-team regulars could be heading for the exit door.

In a statement issued yesterday, they said discussions were "ongoing regarding potential cost-saving measures".

In an interview yesterday, Whyte insisted the cuts were necessary to "make Rangers a stronger business", and re- iterated his belief he had not been responsible for any financial wrong-doing during his tenure.

"Every penny is in the club and every penny is accounted for," he said.

It coincided with a statement from Ticketus – which paid £24m to secure the right to sell the club's future season tickets in a deal which provided cash for Whyte's takeover – calling for a "rapid and successful conclusion" to the administration process.

The company said it was "committed to going to the lengths necessary to ensure the future of the club is preserved and its agreement with Ticketus fulfilled".

In a move that is bound to be seen as a swipe at Rangers, Chief Secretary to the Treasury Danny Alexander will court controversy today by comparing tax dodgers to benefit cheats, and making a specific reference to football clubs.

He will tell the Scottish Liberal Democrat conference in Inverness: "People who dodge taxes are on the same moral plan as benefits cheats. Whether you are a wealthy person or a small business, a football club or a bank, our message is simple – you must pay the tax you owe and we will make sure you do."

inShare

Link to post
Share on other sites

I think it's becoming clearer that Whyte is a cross between Walter Mitty and a modern-day Jonah.

If he ever offers me the chance to do a deal with him, I'm going to say: "Naw."

I'd rather wallop him in the heid wi' a clootie dumpling.

Link to post
Share on other sites

Herald Article

Whyte's lawyers in bankruptcy fear

Victoria Weldon and Helen McArdle

THE law firm at the heart of Craig Whyte's Rangers takeover could face bankruptcy if a legal ruling forces it to pay out millions of pounds for its involvement in an alleged sham investment scheme.

Birds of a feather do what?

Link to post
Share on other sites

Nothing really shocks me anymore about associates of whyte.

Whyte should go on to that real hustle show where he belongs.

Everything about this takeover has been done to line the pockets of him and his mates, D&p on £500 on hour,putting the clubs money into a firm thats about to be liquidated,putting money into barnstead town fc.

shocking really is, starting to think Whyte is really a timposter tbh.

Link to post
Share on other sites

As exclusively revealed on this forum two weeks ago. The hack pack really should keep up.

To be fair to CB, it was a couple of rogue partners that are no longer with the firm. CB are a traditionally conservative law firm of excellent repute.

http://forum.rangersmedia.co.uk/index.php?showtopic=210690&st=0&p=1059768302&hl=collyer%20bristow%20&fromsearch=1entry1059768302

Link to post
Share on other sites

Matt Slater ‏ @mattslaterbbc

#RFC administrators get court order to seize £3.6m currently in bank account of Craig Whyte's lawyers, chasing another £5m too

Is this why the player cut decision is taking forever and a day?

If they get this 3.6 million then thats a huge chunk to help keep us running and would mean lesser cuts?

Link to post
Share on other sites

£8.6m would come in handy right now.

Tho we might not ber able to use it if it is Ticketus money.

Surely if CW took out a loan to pay for his takeover, he should be the one paying it back. If the money never reached Rangers, and isn't secured on us, how can the club be responsible for it.

Looked at a different way, if Rangers did borrow the money from Ticketus to pay off LBG then we can't owe Whyte for it.

We can't pay the same debt to CW AND Ticketus. We'd be paying CW for something WE paid off.

Link to post
Share on other sites

Is this why the player cut decision is taking forever and a day?

If they get this 3.6 million then thats a huge chunk to help keep us running and would mean lesser cuts?

Wouldn't go that far, cuts are still bound to happen. We have to get our running costs down. We probably use this money to try and pay off some of our other debts.

Link to post
Share on other sites

Seems it was money Whyte promised when he tookover the club and the Admin are now going after it.

From the BBC:

BBC Sport's Matt Slater reports that administrators at Rangers are pursuing the club's owner Craig Whyte for up to £9m in money that was contractually promised at the time of his May 2011 takeover.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...