Former Rangers chief executive halts legal action against club

 

Former Rangers chief executive Martin Bain has dropped his legal action against the club, lawyers said today.

Mr Bain was pursuing the Glasgow club for almost £900,000 in damages, alleging a breach of contract following its takeover by businessman Craig Whyte.

The case at Scotland's highest civil court, the Court of Session in Edinburgh, was due to be heard in full in August.

Last year a judge told the club, which entered administration in February, to set aside almost £500,000 in the event that Mr Bain won his case.

Today Mr Bain issued a statement via legal firm Levy & McRae in which he stated that he would discontinue the legal action.

He also said he will return the money frozen as part of his case, minus legal expenses, to the administrators "in an effort to help the club".

He further criticised the "shocking" damage he said has been "inflicted" on the club.

Mr Bain's role at Rangers ended after Craig Whyte's takeover in May last year.

The stricken Ibrox club went into administration on February 14 after the taxman lodged a petition over the non-payment of around £9 million in PAYE and VAT following the takeover.

Mr Bain today insisted that he would do everything he could to help the club "in these difficult times".

He said: "Everyone close to Rangers Football Club knows that I am and always have been totally committed to the club, and that remains my position.

"As chief executive and part of the independent board, our job was to assess and highlight to all stakeholders if we believed there was uncertainty over the future financial viability of the club under new ownership.

"Unfortunately, the independent board had no legal power to block the transaction and (former owner) Sir David Murray made it plain that he wanted to sell."

Mr Bain stressed that his legal action was a response to Mr Whyte's actions and not those of the Old Firm club.

His statement went on: "I personally strongly recommended on more than one occasion that Craig Whyte should not be allowed to buy the club, based on investigations into the transparency of his background and the responses to the questions asked of him as part of the process.

"Unfortunately that forceful representation was not accepted and when he took over I was suspended and my contract ripped up. With what has subsequently transpired, it is quite obvious why he disposed of me in the manner he did. I was further vilified in the press and continue to be subjected to endless rumours and attacks.

"Events have moved on and the damage inflicted on Rangers Football Club is shocking. I had no option but to pursue a claim based on Craig Whyte's actions; the litigation was a response to his actions and not those of Rangers Football Club.

"I firmly believed it was important to make sure he would have to explain everything he did in a court of law.

"Because of the legal process it has not been possible or appropriate to make public comment, which has been extremely hard given the flow of misinformation and falsehoods both myself and the club had been subjected to."

The former chief executive also said that turnover at the club had increased and the debts were reduced in the time before Mr Whyte "forced" his exit.

He went on: "In the two years since the board restructure in August 2009 and prior to Craig Whyte forcing my removal from the club, turnover had increased, operating costs reduced with net debt more than halved from £31.1 million at June 30, 2009 to £14.1 million at June 30, 2011, while the club had won three consecutive league titles in difficult circumstances. This debt reduction was beyond the targets set by the bank.

"In light of the club's current position, I instructed my lawyers to advise the administrators that I am willing to discontinue the legal action and, subject to recovering the costs associated as a result of this action, I will give over to the administrators the remainder of the money that was arrested as part of my case in an effort to help the club.

"I always have done, and will continue to do, everything I can to help the club in these difficult times."

PA

Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Career Services

Day In a Page

General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence
Public relations as 'art'? Surely not

Confessions of a former PR man

The 'art' of public relations is being celebrated by the V&A museum, triggering some happy memories for DJ Taylor
Bill Granger recipes: Our chef succumbs to his sugar cravings with super-luxurious sweet treats

Bill Granger's luxurious sweet treats

Our chef loves to stop for 30 minutes to catch up on the day's gossip, while nibbling on something sweet
London Marathon 2015: Paula Radcliffe and the mother of all goodbyes

The mother of all goodbyes

Paula Radcliffe's farewell to the London Marathon will be a family affair
Everton vs Manchester United: Steven Naismith demands 'better' if Toffees are to upset the odds against United

Steven Naismith: 'We know we must do better'

The Everton forward explains the reasons behind club's decline this season
Arsenal vs Chelsea: Praise to Arsene Wenger for having the courage of his convictions

Michael Calvin's Last Word

Praise to Wenger for having the courage of his convictions