2 March 2012
The statement below has just been issued (5.50pm) by Duff & Phelps, administrators for Rangers, confirming job cut decisions have been postponed until after the weekend.
Duff & Phelps also confirm here legal action being taken to freeze monies in various accounts while taking other action to rescue the club.
Paul Clark, joint administrator, said: “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 £4.5 million shortfall by the end of the season. It is therefore imperative that we find savings of approximately £1 million 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.
“On other matters, 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 8 March 2012.
“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.
“Right now, the situation is quite simple – income generated now will help secure the future of Rangers and we encourage supporters, who have shown tremendous backing for the Club throughout this process, to buy tickets for the Hearts game at Ibrox tomorrow and future home matches.”