Whyte ‘mistaken for whisky tycoon’
Former Rangers owner Craig Whyte was mistaken for a “very wealthy” whisky tycoon by his own lawyer, a court has heard.
Gary Withey told Whyte’s trial at the High Court in Glasgow that he believed the businessman was part of the Whyte & Mackay whisky group when he first showed an interest in buying Rangers Football Club.
Whyte, 46, denies a charge of fraud. The trial continues.
Craig Whyte’s former lawyer has told a court how he believed his client was someone who had “substantial wealth” and mistook him for a whisky tycoon.
Gary Withey told Whyte’s trial at the High Court in Glasgow yesterday that he believed he was part of the Whyte & Mackay whisky group when he first showed an interest in buying Rangers Football Club.
Whyte, 46, denies a charge of fraud and a second allegation under the Companies Act in connection with his May 2011 takeover at Ibrox.
Mr Withey – who worked as a corporate lawyer with English firm Collyer Bristow – was first introduced to Whyte in mid2010.
He was made aware Whyte was apparently someone “looking to do deals”.
Mr Withey went on to invite him to a stock exchange awards ceremony in London. The solicitor later learned Whyte was interested in taking over at Rangers.
Mr Withey said he called him as he had had done “football work” in the past during his time as a lawyer.
Prosecutor Alex Prentice QC asked the witness if he was initially aware how any bid was going to be funded.
Mr Withey: “Mr Whyte was portrayed as someone with substantial financial wealth.
“Most people in the City would have said that. One person confused Mr Whyte with Whyte & Mackay.
“At one point, that’s who I thought I was dealing with.”
Mr Withey told the court that Craig Whyte’s Liberty Capital had up to £33m available for the Rangers takeover deal.
He also said that up to £27.5m of the club’s debt would be paid to Lloyds Banking Group “conditional on completion of appropriate due diligence and completion of all relevant transaction documents”. Mr Withey was eventually instructed in the takeover talks as Whyte looked to acquire Sir David Murray’s majority stake at Rangers.
Mr Prentice again asked about the “source” of funds. Mr Withey said this included “Ticketus”.
Prosecutors claim Whyte helped fund his takeover by getting a loan from the firm against three years of future season ticket sales.
Mr Prentice: “Ticketus handed over a significant amount of money... what were they going to get for that?”
Mr Withey: “Their agreement which sold season tickets to them.”
The advocate depute: “Season tickets belonging to which organisation?”
Mr Withey: “The football club.”
The trial, before Judge Lady Stacey, continues.