BDO raise claim against former Rangers administrators in £28.9m legal action

Paul Clark and David Whitehouse of Duff & Phelps were appointed administrators when the Glasgow club entered administration in February 2012.

four months later The company’s business and assets sold for around £5.5m to a consortium led by businessman Charles Green.

Now, BDO have said the D&P duo failed to help reduce costs and realise additional value from the assets of the club’s trading company and have lodged a claim against them at the Court of Session in Edinburgh.

In a statement, BDO said questions had arisen regarding the administrators’ strategy which had not been “adequately answered”.

BDO said: “The joint liquidators consider that the former joint administrators failed to take actions which would have reduced costs during the administration period and realised additional value from the company’s assets over and above that obtained from the sale of the business and assets to Sevco.”

Mr Whitehouse, Duff & Phelps’ managing director, said: “We were surprised to receive notice of proceedings today, one week before expiration of the limitation period, and we are disappointed that this has been leaked to the media.”

Mr Whitehouse added: “BDO is now alleging that, as the former administrators, we should have achieved a better return for creditors by selling the clubs assets on a piecemeal basis, including Ibrox and its playing squad.

“This is a strategy with which we fundamentally disagree, both in terms of its deliverability and its relevance to achieving the statutory purpose of administration.

“We will be consulting with our legal advisers in order that our position is set out fully before the court.”