Rangers face a winding-up petition as Singaporean based finance company Orlit Enterprises seek to petition the Scottish court to issue the order against the Ibrox side.
A report by Channel Four news stated that the finance company were seeking a winding up order over an alleged debt of £400,000 for helping the Ibrox side source investment which helped Charles Green’s consortium to buy the assets and business of Rangers oldco in June 2012.
According to Channel Four: “this claim arises from the club’s alleged failure to pay two of the four invoices issued by Orlit.
“The source has clarified to Channel 4 News that Orlit Enterprises was contracted to source and introduce the investors who provided seed capital in order to acquire the club from the administrator and to secure the June 2012 payroll.”
The article continued: “….there has been no satisfactory answer from the club as to its non-payment despite several requests. In the circumstances, the application for a winding-up order of the Rangers Football Club Limited – being the trading company obliged to pay the debt – is, my sources say, their only option left. Sources close to Orlit say they now have no other option than to embark upon winding up proceedings.”
However, Rangers tonight have played down the debt and claimed that a repayment plan for the reported £400,000 debt had been agreed, to been managed with a free invoice generator to check all the payments to ensure the cash flow is going as it should.
In a statement via their official website, Rangers said: “With regard to stories circulating about Rangers and Orlit, the sums sought are insignificant and agreement has been reached subject to the necessary paperwork.
“Rangers Football Club is capable of meeting any debts presented legitimately and we would like to stress to our supporters there is no threat to the club whatsoever. The matter is unworthy of further comment.”
Green’s links with Singaporean company
One of the Director’s behind Orlit Enterprises is Chan Fook Meng, an associate of Rangers chief executive Charles Green and current chairman of Nova Resources Limited. Green was chairman of the company until May 2012, when he quit as he ‘pursued other interests’ and Chan Fook Meng took over as Interim Chairman and Chief Executive Officer.
A statement back in May 2012 by the company read: “The Directors of Nova Resources Limited announce the resignation of Mr Charles Green, non-executive director and Chairman, with immediate effect. Mr Green is leaving to pursue other business interests; however the Board wishes to thank him for his valuable contribution to the Company and wishes him well for the future.”
Chan Fook Meng holds a law degree from the National University of Singapore and was called to the Singapore Bar in February 1986. He has practiced as an advocate and solicitor in Singapore for various firms, handling and involved in a number of corporate finance matters and various mergers and acquisitions. He has experience of rescuing and restructuring businesses. Chan is also a Director of Tricor plc and Mandarin Mining plc.
Also on the board of Nova Resources Limited is Nazim Khan. Who is also solicitor and worked as a commercial attorney for several law firms in Singapore before moving into corporate finance, restructuring and mergers and acquisitions. He is also on the board of Tricor plc and Mandarin Mining PLC along with Chan Fook Meng.
Nazim Khan was linked back in May 2012 with investing in Green’s consortium that bought Rangers assets for £5.5 million.
It now seems that the one time associates have fallen out with one another as Orlit Enterprises chase money owed to them by Green and his new associates.
What is a winding-up petition?
A winding up petition is by far the most serious action that can be taken against a company. Often the company has broken any trust the creditor had, payment deals have failed, cheques bounced and generally the directors have not kept their word to pay. Even though a company may have tried very hard to meet payment deadlines, customers may have been slow to pay, or sales have been lower than planned.
The news of the Ibrox side facing a winding-up order comes two days after HMRC were granted permission to appeal the First Tier Tribunal verdict and subsequently lodged said appeal.