Rangers Administration – Day 23

As we near 4pm on Day 23 of the running of Rangers Football Club PLC (in administration) by Duff & Phelps (D&P), the story becomes by the day ever more remarkable.

By my reckoning D&P, who have publicly stated that there is a £1 million per month short fall in income, have, after over three weeks, had four members of staff leave.

These are Gordon Smith and Ali Russell from the executive side and Gregg Wylde and Mervan Celik from the playing staff. D&P pointed out correctly that they could not force anyone to accept a cut in salary. However, the sanction the administrators have is to make redundant any employee who does not agree a wage cut.

So far, at any event, they have not tried to force the issue.

It does make one wonder though about the advice some of the players are getting. Refusal to accept a pay cut could lead to being made redundant and therefore being able to sign as a free agent for any other team, with the associated signing on fees.

If D&P want to run the Club until the summer transfer window and to maintain players so they can be sold off, one wonders how effective that would be. Where will the money come from to keep the doors open? And what is the point if an emasculated Rangers is left to a new buyer?

We can only await with interest the next announcements from the administrators!

In other news, Gary Withey, the Rangers Company Secretary, has left his law firm, Collyer Bristow. He has not been in recent contact with them, nor has he been in touch with D&P, as far as one can tell.

D&P have been able to have a sum in excess of £3 million, held in the Collyer Bristow, transferred for safe keeping to another solicitors’ account, under supervision of the court.

That will not be a quick battle. If the funds were held in the name of Rangers Football Club PLC, then they would need to be paid over to D&P. 

If the funds are in the name of another party, as must be assumed to be the case, then it is unlikely that that other party, whether Rangers FC Group Ltd, Liberty CApital Ltd, Mr Whyte, HMRC, Uncle Tom Cobley or whoever, is going to let it go without a struggle.

Of course as proceedings are ongoing in the High Court ion London, it will not take too long before a large chunk of the frozen money is used up in legal costs.

The court battle regarding this sum continues tomorrow.

We have also had the privilege of various of the main players issuing statements.

Messrs King and Whyte, Mr Murray and Sir David of that ilk, have all spoken directly or through spokesman.

I will, when I have more time, do my usual comma by comma analysis, to assist the insomniacs, but a couple of quick thoughts now.

There has not, despite Mr King’s well known tax problems in South Africa (in connection with which he denies any guilt), been an issue about him being a fit and proper person till now. The added issue he now has to face, as does PAul Murray, is being a director of a football club within the five years prior to it having an insolvency Event.

One wonders how Mr King intends to explain himself with that one?

As if the lawyers surrounding this matter are not making enough money, now Mr King wants to sue MIH/Sir David! There is no time to detail just now what I think of that, apart from saying that Mr King seems to want to put himself in the neither Whyte nor Sir David camp.

Mr Whyte says he expects a CVA to succeed and from his conversation described on the front of the DAily Record, for RAngers to owe no tax once the TAx Tribunal reports its decision. That too is worthy of longer comment than I can manage now. Both suggestions seem, to be polite, a trifle unlikely.

St Mirren have decided to follow the example of D&P by issuing a statement saying nothing!

The situation becomes ever more bizarre, and there remain many things to comment on, once various real life matters are resolved.

No one could have thought that, one year ago, RAngers would be on the point of liquidation, being investigated by SFA and SPL, with their Chairman condemned in court as “wholly unreliable” and with court actions flying about here, there and everywhere.

Liquidation is inevitable.

Unless D&P have a very good explanation for their conduct, I suspect they will face very serious questions about their decisions.

Mr Whyte, despite his bravado, is unlikely to return to Ibrox.

One wonders if his spokesman was asked about meetings of the Trustees of the RAngers Charity FOundation. A meeting with Messrs Whyte, Bain and Greig would no doubt have been fiery!

The OSCR investigation into the RAngers Milan charity match might be interested in that.

I should say, as a post script to that matter, that I raised it as it seemed to be an anomolous decision by the RCF to forego the majority of the donation to it from the game.

If, as commenters suggested, the game had been cancelled, as D&P were unwilling to fund it, and then it had been re-instated as a match to raise money for RAngers, with an add on of there still being a charitable donation, I do not see how there could have been a problem.

However, that is not what happened and what has lead to the latest inquiry. The problem, if problem it was, was capable of being fixed very quickly. It was not.

Anyone maliciously inclined to RAngers could have sat on their hands till after the game, and at that stage it would have been too late to fix the problem.

Instead the publicity given to the matter provided RCF and D&P with more than enough time to deal with the matter. It is now in the hands of the OSCR to decide if they have.

Lots more to come – but back for now to real life!


Filed under Administration, Craig Whyte's Companies, Football, Rangers

41 responses to “Rangers Administration – Day 23

  1. TheBlackKnight

    well hopefully a quick sale will resolve everything!

    move on nothing to see……… 😉

  2. tizzer

    this is getting better all the time. severe cutbacks, need to sell the club in the next few days. at what point will these people realise that avoiding the truth and their responsibilities is what landed them in this mess in the first place. ah well, more from the fiction factory tomorrow

  3. Good summary Paul,

    I am not in the UK, but watching from afar and not being a fan of Rangers, I find it astounding that Duff & Phelps can behave in this manner. Three weeks on and you quite correctly state 2 players walked and 2 “guys” from upstairs walked, and D&P say they have not been successful in negotiations….Man up D&P and do your job, or are you just there to rip them off as well !

  4. AndrewJD

    Statment from rangers (in administration) website shortly after pauls post

    Quick Sale Vital

    Wed, Mar 7, 2012

    Duff & Phelps, the Administrators of Rangers Football Club, today issued the following statement.

    David Whitehouse, Joint Administrator, said: “We are announcing today we are accelerating the sale of Rangers Football Club.

    “The Club is in a perilous financial situation and that should not be under-estimated. Regrettably, we have been unable to agree cost-cutting measures with the playing staff on terms that will preserve value in the business. We understand the players’ position as the scale of wage cuts required to achieve these savings without job losses were very substantial indeed.

    “In view of this, we are faced with a situation of making redundancies within the playing staff on such a scale that would materially erode the value of the playing squad. We are striving to strike a balance where cost-cutting measures can be implemented but do not destroy the fabric of the playing squad to the extent that it will inhibit the prospect of a sale.

    “However, no one should be in any doubt that in the absence of sufficient cost-cutting measures or receipt of substantial unplanned income, the Club will not be able to fulfil its fixtures throughout the remainder of the season.

    “As a result, we are expediting the sale process and over the next few days we will be holding discussions with prospective purchasers who have declared their interest. The Manager, Ally McCoist will play an integral part in thesediscussions.

    “If however it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting measures at the Club.

    Your thoughts folks, I’m thinking this is the begining of the end??

  5. tizzer

    quick sale? wonder what hector will say about this. unless prior assurances given it’s hard to see how HMRC would want to risk a quick sale going ahead if it may affect the HMRC getting paid

  6. Steveo

    As another poster has stated this is defo the beginning of the end. I also am astounded that D&P haven’t made anyone redundant. I can only assume they have been listening to anyone & everyone about how r(IA)njurz are an institution and need to be handled with kid gloves expect the gloves to be off by Friday tho when they realise the expressions of interest aren’t as firm as they’d hoped. At this rate I cannot see them being in a position to fulfil their fixtures after the split.

  7. Jim

    What savings could have been made if D&P had acted, as we have seen at other clubs, at a very early point in the administration process? Enough to avoid this nasty scenario now being played out?

    I somehow feel that D&P went into this quite unprepared for the horrors that have emerged and have failed to grasp the nettle a number of times.

    Were they expecting some kind of quick jaunt up to Glasgow, a friendly deal involving CW and they all then lived happily ever after?

    I appreciate that players have a value to an ongoing business but they also have a cost and that cost is currently killing the business.

    And this is all without the ‘big tax case’ intruding upon any dreams people may have about buying Rangers. That has to be a big caveat in any offer….

    This whole thing has seemed very unreal and I suppose we should not be surprised if Rangers now go on to win their tax case!

    Wonder if HMRC would accept ten years shirt sponsorship and stadium naming rights in lieu of tax owed? That could then perhaps be sold to one of the global financial institutions involved in devising tax avoidance schemes…

  8. richard

    In the new statement, which addresses the European question, the paragraph “As stated there is a possibility that if a new buyer is identified a financial case may be made to sell the business and assets of the old company, but that is not our preferred approach at this time. ” seems to contradict the previous statement claiming they are looking for a quick sale, does this mean they are trying to sell RangersPLC and not the stadium, players, grass rakes and other assets and do not want to sell both together, if so why. sorry if this in an annoying newbie question

  9. Johnobhoyo

    More lies from whitehouse and the other cabbage who I’ve forgotten the name of.

    Tomorrow they will be at the High Court in London and will probably be awarded around £3.6m from the funds of Collyer Bristow. That see the glorious raingurss survive almost entirely intact to the end of the season at least.

    Meanwhile the so-called administrators who said around 10 days that liquidation was a remote possibility now claim it is a real danger. Lies, lies and more lies from these crooks.

    If the club really was in such imminent danger they would have jettisoned the monkeys by now. Instead the charade has been allowed to trumble along until this £3.6m is released to them. Unfortunately a lot of people are being duped by these charlatans.

    There will be no mmajor redundancies at snake mountain. They will fulfill their fixtures this season and they will be back in the SPL next season as the zombie raingurrs.

  10. TheBlackKnight

    The contrived takeover plot becomes a bit clearer today.

  11. Carntyne

    The failure of Duff and Phelps to press ahead with redundancies has now become more puzzling with the revelation that any interested parties must let the administrators know by Friday if they have a proposal to put forward, and in the event they don’t the club may not be able to fulfill it’s fixtures till the end of the season.

    If you take the cynical view that the longer Duff and Phelps can drag out the admistration process, the more money will be deposited in their bank account.

    The amount is thought to be around £3,500 per day.

    Nice work if you can get it.

    What recession?

    • Johnobhoyo

      Carntyne – when RFC get their £3.6m from Collyer Bristow tomorrow that will see them through the rest of the season more or less. All this frenzy about liquidation within days is utter nonsense.

      Fair play to D&P – they are right devious batstarts and have managed to convince so many that the end really is nigh.

      Unfortunately not, and today’s scaremongering will help focus the attention of the hordes so that they will still show up. End result is that RC will fulfill their fictures with the vast majority of the current squad still Rangers players.

      Come the summer and the big tax case then liquidation will hit and newco will inherit the squad from oldco. This is the main act here. Paul Murray and Dave lying King know fine well they need to keep this playing squad more or less intact.

      That is exactly why this whole charade has been drawn out until Friday. It has eff all to do with finding a buyer – how does anyone in the real world expect the club to be bought in 2 effin days? It’s bullshine.

      We will see the Collyer Bristow money as the lifeline that keeps them afloat until summer time.

      Conmen the lot of them.

      • ifa007

        MARCH 30TH Set for Court Case for 3.6 mill…expected to last 4 days.

      • Carntyne


        If Rangers are still limping along after Friday it will have to be without the £3.6Mill which used to be in a Collyer Bristow account, but has now been moved to escrow pending a decision by an English court.

        At least four different parties claim the are owed all or part of the £3.6Mill.
        Two of these parties are HMRC and of course Duff & Phelps along with others.

        It will take weeks or maybe months to sort out the mess, and in the meanwhile lawyers fees will severely eat into the said £3.6Mill.

        Difficult though it is to understand how a company the size of Rangers can fail, the facts are, they have.

        Too big too fail applies to no company.

        The 2007/2008 banking crises and subsequent recession was triggered by the failure and liquidation of Lehman Bros, a company a hundred times bigger than Rangers, which dealt in staggering amount of money.

        If they can fail, it’s easy to see a diddy wee business (in comparison)
        like Rangers to go down the same route.

        It may not be Friday, but make no mistake, Rangers will be liquidated very soon indeed.

  12. Richboy

    I can’t wait for more detailed assessment from Paul. This story just gets uglier (and more intriguing) by the day.

    I don’t want to upset any of the great legal minds on this forum as you do such a good job in enlightening the rest of us, but you have to agree that the standards being set, and the advice being given, by lawyers in many instances is extremely poor.

    I will use the charity match as one of the many examples that are there for all to see. It astonished me that, between them, the legal minds at RFC, RCF and Duff and Phelps were unaware of the legal aspects of RCF foregoing a large slice of their funds from the match. Had it not been for this forum, and I truly believe this to be the case, then all concerned could have been in serious trouble after the event.

    Rangers must have paid (and are still paying) many millions for legal advice on EBTs, HMRC big and small tax cases, defending themselves at SFA, SPL, Police and OSCR investigations etc. They will also be presented with a hefty bill for the services of Duff and Phelps, money I am sure that has been set aside to ensure they at least are paid. Possibly a silly question, are administrators the first to get paid?

    I feel that the administrators should have acted quickly and reduced Rangers squad as the league was already over and there was no more silverware on offer. I also feel that this will come back to haunt them. The administrators could then have focused on their real tasks of negotiating with creditors and finding the millions the Mr Whyte has so scurrilously hidden.

    • Carntyne

      Paul does a wonderful job on this blog, but if you want more detail on the matter I can recommend http://www.rangerstaxcase.com as the main authority on the matter.
      This blog has been up and running since march of 2011 and you’ll find a forensic examination of how and why Rangers have got themselves into such a state.

      • Richboy

        Thanks Carntyne, I have been reading the excellent analysis on that site for some time. Seems lately though that very little new stuff is being posted. Either that or I am not clued up enough to know where to find it.

      • Richboy

        (re reply below) Just popped over to RTC and read the q&a. Great stuff.

  13. NumbNuts

    Couldn’t have been more worried about D&P at their first press conference had they held a scarf aloft and left the room singing “hullo, hullo, we are…”. Their reference to “the millions of Rangers fans worldwide” had me womdering if their numerical skills were quite what they should be or if their excitement of running the Gers had just got the better of them; neither being a great answer. It was such a brash and positive pitch which left everyone with broadband wondering what they knew that we didn’t know. Looks like the answer was ‘nothing’.

    I cannot see how anyone would come in and buy a club with these debts and a risk of further massive debts pending. So the strategy must surely be to keep the lights on, in the hope that the massive debt risk disappears, i.e. the big tax case is won. If in the meantime you cannot keep the lights on and still pay star player wages then it looks like a straightforward but painful decision that could have been made some time ago. Good to keep the fabric of the team if you can but not at the risk of going out of business. At least give yourself the chance of being around when the big tax case result is announced. Some days I think I get it … other days I’m just baffled by the whole thing.

    And I still don’t get why Rangers can’t get to play in Div 3. Can’t the NewCo just apply for the spare space (assuming teams get pushed up to fill the void) same as any junior club can apply for it, for example? Ok, no guarantees but implication on SSB was clearly stated and repeatedly stated that it was SPL or bust, no SFL option.


    A Question Paul. Can assets such as Ibrox Park and Murray Park be put up as collateral to reconcile the bulk of the HMRC “Big Tax” account? I’m not assuming for one minute that the value of these assets would cover the debt, but they could go a long way. Or can fixed assets such as these not be transferred or used as collateral in this way. If this was possible, then surely the other outstanding debts would be more manageable for a wealthy prospective new owner and the club salvageable….just a thought..

    • Carntyne

      It was assumed that Craig Whyte held a floating charge over the club’s assets and being a preferred creditor he would be the first to be paid.
      According to Whyte he is owed the £18Mill he paid Lloyds, plus no doubt fees and charges for his time at the club, regardless of the fact he has driven the club to the brink.

      Since it’s been revealed he actually used £18mill of the TicketUs money and not his own to buy the club, there will be, no doubt, a challenge to his claim of holding the floating charge.

      So at the moment it is impossible to say who holds the floating charge and who will emerge from the carnage and actually own the assets of Ibrox (The Big Hoose) and Murray Park.

      The whole thing is turning out to be a farce, but not for Rangers fans who will undoubtedly see it as a tradgedy.

  15. denis

    What took them so long !

    The club has negative current cash flows, huge debts, ownership of the assets is in doubt, masses of cash is missing. a large proportion of future revenue has already been pledged elsewhere and squandered.

    If Rangers do get a CVA then there are the SFA and SPL investigations which should lead to severe sanctions, even if the Scottish bodies can’t bring themselves to do it EUFA and FIFA won’t be so diffident.

    Who is seriously going to buy this club.

  16. GiGi

    I can’t help but feel that if this was a ‘normal’ business, we are already way past the point where there’d be an unexpected fire which destroys the property with a mega-insurance claim to follow (providing no-one finds the box of matches and the can of petrol).
    If I were a hunnite I’d just turn off all electronic gadgets, buy a property in some remote island somewhere and try to pretend the whole thing never happened.
    The agonies they must be going through ….

  17. Marzipan Joe

    I wonder if anyone shares my impression that D&P are working closely with Craig Whyte and in his interest. By trying to sign a player while in administration, give preferential treatment to some creditors and outright refusing to take steps to cut the costs they must know that they are antagonizing the creditors to a point to where a CVA is extremely unlikely. Remember you need a bit of good will on part of the creditors here.
    Also the very short deadline for any interested parties in a takeover bid suggest to me that their aim is to get things quickly (maybe before facts are brought to light that can be used as grounds for challenging the initial takeover last year).
    Had cost cutting measures hade been introduced and season tickets being declared invalid I am optimistic that this would have secured the club going on at least until the FTT decision on the big tax case has been announced.
    To think that somebody will table a concrete takeover bid before the exact sum of Rangers debt and the future role Craig Whyte in the club is clarified appears to be wholly unrealistic.

    • Jim Harkins

      I do.
      Remember that Whyte nominated Duff & Phelps – I think that they had worked with him before.
      D & P’s approach has clearly been to find a buyer for the business as a going concern, something that would be in the seller’s interest. Their repeated concerns to maximise returns for the creditors is a PR exercise.
      This is a unique opportunity to study an “Insolvency event” as it is played out in public; perhaps we are fortunate in Scotland to have a reserve of educated unemployed to run, and comment on, these excellent blogs.One silver lining might be an official enquiry into how Administration, Receivership, etc. works in practice. If this is an example, there must be plenty of shafted creditors out ther.

  18. ifa007



    In February Craig Whyte stood down as board secretary from Pritchard Stockbrokers after it was barred from further trading on behalf of clients. “Pritchard was ruled by the Financial Services Authority to have compromised the security of clients’ funds, by trading with their money on its own account and by using their funds to pay its own costs.”


    Merchant Capital warns investors to expect income delays


    Merchant Capital has confirmed some investors’ income payments have been delayed after the FSA suspended former custodian Pritchard Stockbrokers.

    In a letter to investors, seen by Money Marketing, Merchant Capital director Christopher Day says the firm will shortly commence the transfer of assets to its new custodian Reyker.

    He says: “Any delayed income and surrender payments will be processed shortly and once the transfer is complete, future income and maturity payments will be paid as normal.”

    Merchant Capital, the structured products division of Merchant House Group, refuses to confirm how many investors are affected by the delays or when the payments will be made.

    A spokesman says: “Merchant Capital is still working closely with the FSA to ensure a smooth transfer of assets to its new custodian Reyker Securities, which is expected to commence shortly. Regretfully, this has led to a delay in payment of income but this delay will be kept to a minimum.”

    The letter also says: “There are some residual client cash holdings at Pritchard that will remain frozen and the FSA is working with Pritchard to understand the position with regard to these client money holdings.”

    The spokesman refused to comment on the amount of cash frozen or the number of clients that are affected.

    For those interested please see below links.

    Merchant Capital Limited (Shareholdings Merchant House Group Plc 100.00%) see MHG Plc


    Merchant House Group Plc (see Shareholdings & Investments)


  19. Johnobhoyo

    Hands up guys over my views yesterday – I thought it was almost certain they would get that money today, but now I hear that the D&P conmen have just about reached a deal with the players to stave off any major redundancies.

    The charade continues apace.

  20. Johnobhoyo

    Paul Clarke interview with BBC can be found here:


    Looks like no redundancies.

    Get these conmen to feck!

  21. Perspective

    Please there seem to be people on here who are not interested in law thoughts and only on making hate filled remarks that perversely seem to indicate a jealousy that Rangers are not yet dead and grabbing all the headlines while their own team quietly march to a highly impressive title. Move to another forum guys. I have a lot of sympathy with Duff, they have a lot to deal with and arguably should be commended for protecting jobs so far, not berated.

    • Richboy

      I have to disagree Perspective. I have found very few “hate filled remarks” on this forum. If you consider this forum to be bad then try any other Old Firm blog to see what real hatred is. That is the main reason that I visit here daily. The other reason is that the analysis (and subsequent discussions) are so well delivered in layman’s terms and explain what is, and is not possible, under the relevant laws. Something I would otherwise be clueless about as the mainstream media is guilty only of reporting the sensationalist aspects of this crisis.

      As for not being interested in “law thoughts” I would again disagree. I can go to any forum, except RTC, and find both sides advancing their agenda, most of which is utter hogwash and as far from reality and practicality as possible. On this site I have been enlightened and helped by (obviously including Paul) posters like Carntyne and ifa007 who seem genuinely interested in only dealing with aspects that are relevant, lawful and interesting.

      As for Duff and Phelps, I am sure most of the posters who have said “negative” things are perplexed as to how they have behaved in relation to other high profile administrations. Unfortunately for them, and not their fault, the fact that they were appointed by Craig Whyte has tarred them with a not very nice brush. Hopefully everything they have done will be vindicated and they will save Rangers from liquidation. If they do not then I feel an inquiry into their strategies will be forthcoming.

      I hope you don’t think I am having a go at you personally but I felt it was right to defend the majority of posters on this excellent site.

      • Perspective

        Rich boy, fair enough thanks. I was referring to comments like rancid poisonous cheating conmen zombies charlatans etc! But you are correct I probably lead a sheltered life. It is high time that Duff got some credit for actually trying to save a business, which is a big part of their statutory role, as most football administrators just seem to want to take a chainsaw out from day one.

      • Richboy

        Thanks Perspective for your reply. I also apologize if I went OTT with my defense of this forum.

        My greatest fear is that this forum will be hijacked by tribal Neanderthals and those of us with much less of an understanding of the legal aspects will again be left at the mercy of mainstream media journalists with an agenda.

        Good to see that a civil conversation can still be held amid this very controversial issue.

  22. ifa007

    I posted you a message saying court date was set for 30th March and probably a 4 day hearing.
    I am copying here from Interactive Investor

    19:20 Re: The Missing £1M

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    I am not invested here but having had a look at the newsflow and the thoughts of many posters I feel that within a short time trading will be suspended. My view only but it will be interesting to see where MHG will be in a couple of months time.

    13:48 Re: The Missing £1M TX2

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    Current Directors of Merchant Turnaround are needless to say James Holmes & Phillip Betts;both close business associates of Craig Whyte.Merchant Turnaround which has raised cash from public via MHG companies and is associated with MHG has previously being involved with troubled companies connected to White & Holmes these caused account audit difficulties for MHG.
    12:57 Re: The Missing £1M Atrocity Exhibition 2

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    That would be quite funny if not so tragic..

    I have email evidence from Merchant (House) where they clearly and categorically deny anything to do with a missing £1 Million and say they chose not to comment on the issue when reported in the press as “They didn’t want to draw attention to it”..

    They sent me this email as a declared holder of mhg stock… (Well, I hold a couple of quids worth to allow me to ask questions as a shareholder..

    So, in essence did they lie to me….

    The whole situation is quite tragic, yet whilst tragic for people who have funds tied up and now waiting to hear whether they will ever get their hands back on their own funds, its equally as tragic that despite the press reports etc that some people still consider this a buy as a listed stock.


    12:38 Sell Re: The Missing £1M MickinVest1 1

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    11:59 The Missing £1M Eddy_Boy1 1

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    Merchant Turnaround were in court today trying to get their hands on £1m they say are owed to them by Craig Whyte’s companys RFC, the case revoves around a disputed £3.6m held in an account of Colly Bristow the law firm.


  23. GiGi

    it is my belief that this whole sorry affair will drag on and on for months, if not years with claim and counter claim, my lawyers versus your lawyers and their lawyers etc…
    The high court case in London is a example. Even in that case 2 new parties came into the arena to contest the ‘winnings’. How many other as yet unseen parties are going to come out of the woodwork making the legal proceedings and even more complex quagmire than it already is?
    Even the question of the original Administration comes into question. Since it has come to light that CW purchased RFC with RFC money I think some legal brains might legitimately claim that he does not in fact legally own the club. Now that Messrs King, Murrays and Whyte are turning on each other, are we ever likely to see an end to courtroom feuds?

  24. ifa007


    I posted yesterday on Pritchards Stockbrokers :

    “In February Craig Whyte stood down as board secretary from Pritchard Stockbrokers after it was barred from further trading on behalf of clients. “Pritchard was ruled by the Financial Services Authority to have compromised the security of clients’ funds, by trading with their money on its own account and by using their funds to pay its own costs.”

    TODAY….The Financial Services Authority confirms that Pritchard Stockbrokers, the broker firm that it issued with a supervisory notice last month, has entered the Special Administration Regime today (9 March).

    Pritchard was issued with a first supervisory notice from the regulator in February over alleged breaches in relation to client asset handling at the firm, including use of client funds in its own accounts.

    The notice meant that Pritchard was not able to carry on any of the regulated activities in Pritchard’s Part IV permission, except to close transactions which have already commenced.

    Later that month, broker and wealth manager WH Ireland agreed a deal to acquire part of the client book of the beleaguered broker, including 8,000 active private clients and £400m assets.

    The purchase was completed for a cash consideration of up to £500,000, half of which was paid on completion of the transaction and half to be paid subject to the successful transfer of the acquired assets.

    Merchant Capital, for which Pritchard acted as custodian for assets held in its structured product division, has sought to assure investors that it “maintains a complete and accurate record of all of its structured product client assets”.

    Since the supervisory notice being issued to Pritchard, Merchant has confirmed that it has appointed Reyker Securities as a new custodian for client monies in its structured products division. The watchdog said in a statement that customers should contact Timothy Ball, Roderick Weston and Alistair Wood at Mazars LLP, who have been appointed joint special administrators for the firm, for more information.


  25. Johnobhoyo

    Apologies guys if I have lowered the tone of this fine blog – this will be my last post on here.

    As I type, I have just seen the final piece of the jigsaw that masquerades as the biggest stitch up in Scottish football history be put in place.

    All the parts are now ready for RFC to be liquidated, a newco RFC to come in during the summer (by and large with the current squad intact) and be admitted into a new SPL. A new SPL in which gate receipts will be halved. A new SPL in which TV money will be shared equally. A new SPL which will disadvantage Celtic to such an extent that new RFC will soon be their equal again.

    Well I – and many others – will not stand for it. I’m going to enjoy the next three months as I know they will be my last as a supporter. No way on God’s earth shall I pass so much of my hard earned cash to shysters like new RFC, Romanov, Michael Johnston and John Yorkston.

    Today is the day the wheels have been set in motion. The corporate crooks of Duff&Phelps have taken to their task like ducks to water. There is something seriously evil about that place called Ibrox. Like it did with Butcher, Goram, McCall, Roberts, Gascoigne, when an Englishman enters that den of iniquity they are hypnotised by the poison. After only three weeks there Messers Clarke and Whitehouse have fallen into the trap as well.

    Shame on them.

    • Perspective

      Johnobhoyo, enjoy the next 3 months I totally agree, and once you have the taste of success again I am optimistic you will look forward to what you outline to be a highly competitive and enjoyable league in years to come. I long for a league where there are four or five challenging for the title and believe that the extra edge every week will increase the quality, particularly of the homebred guys who might actually want to spend a few years up here before going for the bigger leagues and money. And if some of the bitterness disappears on both sides of the Old Firm and maybe the toxic element of the rangers support in particular disappears then bring it on! That is a footballing view. On business matters, again I reiterate that d&P should be commended for their determination to save an important business in this country, while reconciling this with the interests of creditors. They have taken the hard path, it would have been easier to wield the axe on day one. Can you not understand this? Do you not think that if HMRC had an issue with this approach they would have been more forthcoming by now? It is a refreshing and professional approach, to describe them as corporate crooks is unfair in the extreme.

    • Johno,

      Don’t feel you have to go – as with RTC I don’t want this to be another KDS. It is definitely an open house.

      Your contributions are alwys worth reading, even where one might not agree with them all.

  26. denis

    Now a pension fund has been raided.

    I hope my pension is not being loaned to Football Clubs, particularly one that is known to be in financial difficulties. Whose bright idea was it to make a loan to Rangers ? Why deposit the funds with the lawyer if they were still considering it?

    Such bad luck that they were released without authorisation.

    If the administrators have planned to get the money any time soon they will have to re-visit the plan.

  27. denis

    Good link.

    Another company whose liabilities exceed their assets. Hopefully the regulators will look at all the companies in this saga with a view to detecting if there has been criminal behavious.

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