In a recent case which has witnessed an economic disaster within a UK football club, lawyers have snapped up a sizeable sum
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div>In a recent case which has witnessed an economic disaster within a UK football club, lawyers have snapped up a sizeable sum...
Figures announced by financial services firm, BDO, have revealed the extent of which the insolvency experts and lawyers have benefited in fees from the liquidation of the RFC2012 PLC formerly known as Rangers Football Club PLC.
Rangers collapsed into liquidation, after failing to emerge from administration which resulted from substantial amounts being owed to HMRC.
However, a report released last month details that whilst BDO had been attempting to recover as many funds as possible from those who had lost out from the demise of Rangers, the accountants netted over £1 million for themselves - which has already been drawn down.
Furthermore, the report details that a cheque is set to be received from Everton Football Club, over the sale of Nikica Jelavic, who was sold to the Merseyside Club to alleviate losses.
The cheque, according to the report, amounts to £975,000.
In the report, BDO states: “As previously advised, this is a complex liquidation containing a number of key areas of investigation, each of which may have a significant impact on the ultimate outcome for creditors. However, due to the highly sensitive nature of certain aspects of these investigations, we consider that it is not appropriate to provide full details in respect of our investigations to date in this circular. In particular, we are not in a position to comment in detail upon the following matters”
In total, more than £1 million has been spent on legal fees, with over £650,000 going to solicitors, Stephenson Harwood.
A case involving HMRC and the club’s use of a tax scheme, still remains.
On the matter, the report said: “If HMRC are successful in the appeal their potential claim in the liquidation could be significant and have a material impact upon any dividend that may ultimately be payable to unsecured creditors.”
“Due to the significant issues to be resolved in the liquidation, the joint liquidators do not expect to be in a position to bring this case to a conclusion for some considerable time. Further reports will be circulated to creditors within six weeks of each six month anniversary of the date of liquidation.”
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