NICOLA Sturgeon refused to intervene to help Rangers when it financially imploded saying the Scottish Government did not want to be seen as partisan.
David Whitehouse of Duff and Phelps told of the approach to the then Deputy First Minister as he and Paul Clark, who were joint administrators of Rangers when it financially imploded in 2012, were being sued for £56.8m by oldco liquidators BDO which says their flawed cost-cutting strategy meant creditors lost millions from the handling of the club’s financial implosion.
The action comes nine years after the Craig Whyte-controlled Rangers business fell into administration and then liquidation leaving thousands of unsecured creditors out of pocket, including more than 6000 loyal fans who bought £7.7m worth of debenture seats at Ibrox.
Mr Whitehouse said that the approach came for finanical help to secure the future for the club after the business went into administration before being later plunged into liquidation.
But Mr Whitehouse, 55, a Duff and Phelps managing director and insolvency practitioner said she did not want to intervene.
He told Lord Tyre in the Court of Session: “We got short shrift when we approached her. She said ‘we can’t be seen to be biased'."
Mr Whitehouse and Clark are defending the action in the Court of Session claiming the liquidators expected a “bonkers” strategy of a ‘fire sale’ of Rangers which would have “effectively shut the club down for good”.
The claim comes nine years after the Craig Whyte-controlled Rangers business fell into administration and then liquidation in 2012 after he was at the helm for just nine months leaving thousands of unsecured creditors out of pocket to the tune of millions, including more than 6000 loyal fans who bought £7.7m worth of debenture seats at Ibrox.
The assets including Ibrox and training ground Murray Park were sold to the Charles Green-fronted Sevco consortium for £5.5m while the oldco was heading into liquidation.
Mr Whitehouse, Mr Clark, Mr Whyte and Mr Green, and three others were were subjected to criminal proceedings in relation to fraud allegations in the wake of Craig Whyte's disastrous purchase of Rangers from Sir David Murray for £1 in May 2011 and its subsequent sale before a judge dismissed all charges.
The fraud case arose after the club under Mr Whyte went into administration nine months after he bought it, with debts soaring over £100m, while the team ended up relegated to the bottom rung of the Scottish football pyramid.
Mr Whitehouse and Mr Clark have succeeded in a malicious prosecution claim against the Lord Advocate and the Chief Constable and settled damages out of court in December to the tune of more than £24m.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel