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7 October, 2021
Liquidators of RFC 2012 Plc v. Clark and Whitehouse  CSOH 99
A commercial court judge has held that the former joint administrators of Rangers Football Club Plc breached their duties to the company, and has ordered them to pay compensation to the current joint liquidators for that breach of duty in the amount of £3,404,500.00. Ampersand’s Timothy Young was instructed as junior counsel for the joint liquidators along with Kenny McBrearty QC.
In a lengthy judgment, the judge found the joint administrators’ decision making in relation to player and non-player redundancies, and the sale of players fell below the standard reasonably to be expected of an ordinarily competent admininistrator in a number of respects. The judge, also, found that they had breached their duties in considering whether to realise the value of the company’s heritable properties, Ibrox and Murray Park.
As a result, the judge ordered them to pay compensation under paragraph 75 of Schedule B1 of the Insolvency Act 1986 under a number of heads for the loss of a chance to realise more for players and the heritable properties.
The Opinion of the Court can be viewed here.