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| Version 0 | Version 1 |
|---|---|
| 'No ruling' on Rangers administrators' Ticketus challenge | 'No ruling' on Rangers administrators' Ticketus challenge |
| (40 minutes later) | |
| A judge has declined to rule on whether Rangers can rip up a £24.4m season-ticket deal with Ticketus. | A judge has declined to rule on whether Rangers can rip up a £24.4m season-ticket deal with Ticketus. |
| Administrators Duff and Phelps wanted to tear up the agreement on the basis it could discourage bidders who may want to take over the club. | Administrators Duff and Phelps wanted to tear up the agreement on the basis it could discourage bidders who may want to take over the club. |
| After a five-day hearing at the Court of Session, Lord Hodge said he did not have enough information about bids for Rangers to make a ruling. | After a five-day hearing at the Court of Session, Lord Hodge said he did not have enough information about bids for Rangers to make a ruling. |
| However, he did clarify Ticketus's status as a creditor. | However, he did clarify Ticketus's status as a creditor. |
| The judge said the company had no security over the assets of Rangers and was a simple creditor with the same rights as other creditors. | The judge said the company had no security over the assets of Rangers and was a simple creditor with the same rights as other creditors. |
| The Ticketus deal was struck by Rangers owner Craig Whyte during his takeover last year. | The Ticketus deal was struck by Rangers owner Craig Whyte during his takeover last year. |
| Mr Whyte used money from the Ticketus deal to complete his purchase of the Ibrox club, taking over its £18m debt from Lloyds Banking Group. | |
| Potential investors | |
| Insolvency experts Paul Clark and David Whitehouse, from Duff & Phelps, were appointed as administrators over a month ago. | |
| The administrators claimed the Ticketus deal, which would give season ticket revenues to the firm for the next three seasons, could deter potential investors. | The administrators claimed the Ticketus deal, which would give season ticket revenues to the firm for the next three seasons, could deter potential investors. |
| Season ticket sales are one of the main sources of income for Rangers, generating about £12m a year. | |
| It is understood there are four parties interested in buying Rangers. | |
| One of these is the Blue Knights consortium, led by Paul Murray, which includes Ticketus. | |
| After the verdict, a statement from Ticketus said the Blue Knights bid could "achieve a rapid resolution for the club and provide it with a future that is free of unnecessary uncertainty". | |
| "By incorporating Ticketus into their bid, the consortium is uniquely able to secure this outcome," it said. | |
| Blue Knights | |
| The Ticketus statement said: "The court has made it clear today that the Ticketus contract cannot be breached unless there is substantial evidence that by doing so the administrators are able to significantly improve returns for creditors and improve the chance of returning the club to a going concern. | |
| "Given the strength of the Blue Knights consortium's bid, and Ticketus' role in this, with its contract remaining valid and enforceable, we question the ability for this to happen." | |
| Ticketus said it would "do everything necessary" to defend its position and ensure its contract was honoured. | |
| Duff & Phelps went to the Court of Session because it was concerned the uncertainty over the rights of Ticketus to future income was likely to deter potential investors making a realistic offer. | |
| Once the administrators have assessed the potential bids, they will give one party preferred bidder status. | |
| That party would assemble a pot of cash, including its own bid, and would approach creditors to ask for a company voluntary agreement, seeking a pence-in-the-pound deal to repay them in part so that the club can exit administration. | |
| If the preferred bidder cannot secure a deal with holders of 75% of the value of the debt, then there remains a possibility that the club could be liquidated. |