Rangers Football Club CVA Proposal refused by HMRC

Rangers Football club had offered those owed money a reduced payment deal via a Company Voluntary Arrangement, funded by an £8.5m loan from a consortium led by Charles Green. Administrators Duff and Phelps confirmed on Tuesday they now expect HMRC to refuse the proposal at a vote on Thursday afternoon.

Mr. Green said: he was “hugely disappointed” by the rejection of the CVA proposals by HMRC, whose debt currently stands at around £21m in unpaid VAT and PAYE.

Rangers are currently awaiting an outcome to the First Tier Tribunal in a case over the illegal use of an employee benefits trust to pay players and staff between 2001 and 2010 that could result in the club being served with a tax bill of approximately £75m.

HMRC had previously agreed with Duff and Phelps to appoint neutral insolvency firm should Rangers have to be liquidated. This came after the administrators had asked creditors to appoint them as liquidators should the CVA fail.

Japan's credit rating drops over debt concerns

Japan's credit rating has now been downgraded by two levels by rating agency Fitch on concerns about the country's high levels of debt.

Fitch cut Japan's rating to A+ from AA and warned that further downgrades were possible.

Japan has by far the highest debt to GDP ratio of any major economy, although much of this debt is held by domestic investors.

The government has spent huge amounts of money on trying to stimulate growth not unlike our own economy here in the UK.

Part of the pressure within our own economy is at grass roots level. With the banks not lending, businesses are finding it more challenging to keep cash-flow at levels that can be managed easily. It as at this stage that companies often consider liquidation as they are unable to continue to trade. To find out more about liquidation or in this case more specifically, a creditors' voluntary liquidation visit www.companydebt.com or give us a call on 08000 746 757.