Duff & Phelps are cleared
THE administrators of the oldco Rangers have been cleared of misconduct and a conflict of interest over their involvement in the club.
Duff & Phelps complied with relevant guidance and legislation and there was no primafacie case of misconduct against joint administrators David Whitehouse and Paul Clark, the Insolvency Practitioners Association (IPA) has ruled.
The IPA received complaints that Duff & Phelps broke the organisation’s code of ethics as David Grier, a corporate finance partner at Duff & Phelps, gave financial advice to Craig Whyte during and after his takeover of Rangers.
Mr Whitehouse and Mr Clark were appointed as joint administrators in February last year and eventually facilitated a sale to Charles Green’s consortium for £5.5 million.
IPA investigators examined information from Mr Clark and Mr Whitehouse along with several case
files. A letter sent to those who had raised complaints said Mr Clark and Mr Whitehouse had not acted inappropriately when accepting the appointment.
The letter added: “At worst it was considered that Messrs Clark and Whitehouse failed to fully consider and manage the public perception of a conflict of interest.”
The letter also confirms the IPA looked into other aspects of the insolvency process including a £500,000 fee quotation given by Duff & Phelps to Mr Whyte prior to the oldco going into administration.
A recent update from Duff & Phelps suggested its fees would be around £2.7m.
The IPA in its letter said the original quotation was provided on a different basis to the actual work carried out. Mr Clark and Mr Whitehouse also faced criticism over decisions they took during the administration such as making players agree to short-term wage cuts and conducting much of the sale process in the media.
The IPA’s code of ethics says an insolvency practitioner has to comply with principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.
Duff & Phelps always said there was no conflict when it took the Rangers job.