HM Revenue and Customs plan to reject Rangers' CVA proposal from Charles Green's consortium this week, leaving liquidation a strong likelihood for the former Scottish Premier League champions.
Green, along with the club's administrators from Duff & Phelps, has confirmed that HMRC will turn down the Glasgow-based outfit's offer of a pence in the pound deal in a vote on Thursday.
Green had previously stated that if his company voluntary arrangement did fail, then his bid would go into "automatic mode", where all assets would be sold to a new business for £5.5m, which would put Rangers into liquidation.
In a statement, Green said: "I am hugely disappointed by the decision of HMRC not to support the CVA proposal and that disappointment will be felt acutely by Rangers fans across the world. Frankly, I do not see what benefit will be achieved by this decision. My consortium's offer for a CVA amounted to a total of £8.5m.
"I am particularly saddened by the fact that this decision will mean that small shareholders will lose their shares in The Rangers Football Club plc, something which we were trying to avoid happening. We will be exploring ways for the 26,000 shareholders who have lost their shares to subscribe for shares in the new company. We expect to appoint a private client broker in due course to allow existing shareholders and fans to buy into the new company.
"We will, however, examine how to address this with regard to shares in the new company. The solemn promise I can make to Rangers fans today is that this club will continue as Rangers Football Club and will continue to play at Ibrox Stadium. We will be liaising with the football authorities at the earliest opportunity to establish our position regarding the SPL."
The club's administrators have also confirmed that as a result of the HMRC's decision sanctions will have to be made, one of which excludes the Gers' involvement in Europe for three years.
The administrators have also stated that the only way for Rangers to remain in the SPL will be if other clubs in the top flight allow them permission.
Danielle Joynson
