Whyteclaimed hehad£60Min assets: court
CRAIG Whyte told a prospective business partner that his firm had £60m of assets, a court heard.
London financier John Newlands said he had seen documents relating to Whyte’s Liberty Capital company.
Mr Newlands later went on to write a letter that the future Rangers owner could “comfortably” back a £10m share issue.
The evidence was yesterday heard at Whyte’s trial at the High Court in Glasgow.
The 46 year-old denies a charge of fraud and a second allegation under the Companies Act in connection with his takeover at Ibrox.
Mr Newlands – a corporate financier – recalled how he first met Whyte around 2010.
They later discussed going into business together.
The trial has previously heard how Whyte struck a deal in May 2011 to buy Sir David Murray’s controlling stake at Rangers.
It emerged that in March 2011 – Mr Newlands wrote a letter to the Murray Group stating Whyte could “comfortably underwrite” a possible £10m “rights issue”.
The 62 year-old witness said there were two reasons why he done this.
He told the court: “One, because Craig had allowed me sight of the financial statements of Liberty Capital as well as texts and emails that there were assets of £60m.
“Secondly, I did it in good faith because Craig and I were in a business relationship.”
Mr Newlands also yesterday recalled how Whyte had once stepped in when the financier could not pay his £2,100 rent for his own business.
He said: “I asked Craig as a prospective business partner if he could kindly provide the wherewithal.”
Mr Newlands told he had had needed “readily available cleared funds” and that Whyte went on to “transfer” payment.
The trial, before Judge Lady Stacey, continues.