Rangers administrators delay redundancies decision

 

Rangers administrators Duff and Phelps have postponed any final decisions on redundancies until early next week.

They had expected to complete a review of staffing levels and cost structure this week following a number of discussions with manager Ally McCoist.

However, any announcements have been delayed for now as the administrators continue with their attempts to find savings of approximately £1million per month to ensure the ongoing viability of the club.

The administrators are still hopeful of reaching a "consensual position", amid reports that McCoist and his players were presented with a number of options balanced between job losses and wage cuts.

Paul Clark, joint administrator, said in a statement: "We appreciate this has been an extremely difficult week for all the staff of Rangers Football Club and the supporters.

"As administrators, we had anticipated completing our review of staffing levels and cost structure of the Rangers business this week but the participation of a number of players in international fixtures did interrupt the process.

"In short, the Rangers business is trading at a substantial loss and we have no alternative but to fill an approximate £4.5million shortfall by the end of the season.

"It is therefore imperative that we find savings of approximately £1million per month to ensure the ongoing viability of the business.

"As has been widely publicised, there have been a number of discussions this week in an effort to achieve the necessary cost reductions.

"We are determined that all realistic options should be explored and today discussions have been ongoing with Ally McCoist who, in turn, has been speaking to his players and the PFA Scotland.

"We would prefer to reach a consensual position but as the day has gone on and tomorrow's very important match against Hearts looms larger, it has been agreed that any final decisions have been postponed until early next week."

The administrators also confirmed they had won an initial court order to seize £3.6million held in an account of Rangers owner Craig Whyte's lawyers, Collyer Bristow.

It was previously revealed that the £24.4million cash injection from investment company Ticketus, who bought rights to future season ticket sales, had been paid into an account held by the London-based law firm.

The club's £18million debt to Lloyds Banking Group was then paid off from the same account after Whyte took over and administrators have been seeking clarity on the remainder of the sum.

The statement read: "We can report that we made this week an emergency application to the High Court in London to secure money held in the client account of solicitors, Collyer Bristow, who had acted for the purchaser of the club in May 2011.

"We can confirm that following the court hearing Collyer Bristow paid approximately £3.6m to our lawyers, Taylor Wessing, to be held securely by Taylor Wessing until the High Court decides whether or not it is the club's money.

"Collyer Bristow will also disclose to Taylor Wessing details of the payments of funds out of their account on behalf of the club since May 2011.

"The High Court in London will hear further representations on the administrators' claim to the money and our request for further information from Collyer Bristow on March 8.

"Since legal proceedings are ongoing we cannot provide further information but this is a positive step in the administrators' investigations into the club's financial affairs."

PA

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