Firm bidding for Rangers' assets faces liquidation

Investment firm Worthington Group PLC was accused of stymying the process of reimbursing businesses that were owed money by the former Rangers company - which ranged from giants such as Coca-Cola to a picture framer in Bearsden - by launching a legal claim for entire £16 million cash pot that had been made available to pay back creditors.

It is not yet known what impact the possible demise of Worthington Group, which is now the subject of a winding up order from trustees of its pension protection fund, will have on its possible claim against Rangers or creditors or the former Rangers plc aiming to be repaid from the £16 million pile.

Three years ago, Worthington announced to the Stock Exchange that it was also staking a legal claim to ownership of the business and assets of Rangers which has not yet been pursued.

It also had a legal demand on all the cash from the liquidation of RFC 2012 plc, dubbed Rangers oldco, which led to continued delays in payouts to thousands of unsecured creditors including more than 6000 fans who bought £7.7million worth of debenture seats at Ibrox.

In the latest update from liquidators BDO, which is overseeing the liquidation of Rangers oldco, the firm said it is still considering how the Worthington Group claim impacts on its ability to pay those who lost money.

The liquidator had previously indicated it would reimburse creditors by the end of this year.

Official documents confirm that liquidators have been appointed for Worthington after an application was made to the High Court in London.

Irvin Cohen and Mark Fry of Begbies Traynor were appointed joint liquidators of the investment firm last week.

A spokesman for Begbies Traynor said: “At this early stage of their appointment, the liquidators are undertaking investigations into Worthington’s assets, including into any interests they may have through subsidiaries, but it is too early to comment on these investigations.”

It is understood that trustees of the Pension Protection Fund have rejected Worthington’s plans for a Company Voluntary Arrangement (CVA) which would let a proportion of debts to be paid back over time and avoid the winding up order.

Worthington Group is understood to be seeking a judicial review over the trustees’ stance in an attempt to exit liquidation through the CVA.

A source close to the firm said: “While the directors are considering what other options, if any, are available to the company, the outcome of the review is considered, as this stage, to be key to the future of the company.”

The claim on the creditors’ pot was launched by various companies owned by Worthington Group.

The latest claim was a far smaller demand of £3 million through the Worthington-controlled Rangers FC Group, previously known as Wavetower, the company formed to buy Sir David Murray’s 85.3% stake in Rangers for a nominal £1 in 2011.

The claim centres over Worthington's rights to a security over the assets of the former Rangers oldco.

It is claimed the security was reassigned after an £18 million Rangers bank debt was paid off.

This also became the basis of Worthington's claim over Rangers business and assets.