Question Duffers told any porkies since their first press conference ?

s r Have the D Verbatim re emarks in Duff and Ph D helps statem read by Paul Clark from a prep ment k pared script at the first pres conferenc on 18 Feb 2012 eir ss ce b (My comm ments in brac ckets in itali ics) ,,,,,,,,,,,,,,,,,, ,,,, D&P is a l long establi ished global financial advisory and investmen banking l a d nt business. It the world largest i ts ds independent valuation firm. In the UK alone we t f w employ in e excess of 20 people. L last yea D&P acq 00 Late ar quired MCR a UK base R ed restructurin and turna ng around firm Both David and I were formerly p m d partners of MCR. MCR itse which wa previousl known as Menzies Corporate R elf as ly s C Restructuring was asked to pro ovide consu ultancy advi to Rangers on the merger of th club late last ice m he year. ,,,,,,,,,,,,,,,,,, ,,,,,,,, (Thats inte eresting) If this comm is enti ment irely correct it means th Menzies Corporate Restructuri t hat s ing (David Grie were not employed by CW to advise him before durin and after the er) d a ng r takeover in May 2011. It also mea that TV footage of David Grie accompan n . ans V er nying new owner CW into Ib brox in May 2011 have been misin y e nterpreted a inferring that as t they had a b business rel lationship Or perhaps ent ct is nt W The comme is correc but Paul i referring to D & P`s involvemen with CW and Rangers on since Oc 2011 and convenient ignoring the prior in nly ct tly nvolvement of Menzies Co orporate Re estructuring? ? ,,,,,,,,,,,,,,,,,, ,, If this comm is wro then wh ment ong here has Pau made a mistake? ul m Did Paul m mean to say late 2010 notlate 20 011 meanin Menzies Corporate ng Restructuring were em mployed in l ate 2010 by Rangers an not by C y nd CW? And emplo oyed to prov Ranger with advic to Range about the being merged vide rs ce ers em m with some o other company? Or (Sods Law) Was Paul re eading from a script wr m ritten month ago perh hs haps Oct 201 for appro by 11 oval some PR D D&P bigwig in New Yo and that was why he said late last year and not ork a late 2010 ? If this was t true then D&P have be preparin themselv for this p een ng ves press confer rence for a long time Either way these obfus scated comm ments are a blatant atte empt to dista ance D&P from the f involvemen of Menzies Corporat Restructu nt te uring (David Grier) in t takeover d the r. The truth m be that MCR were employed by Rangers to assist CW with the may M b W knowledge of either on or none o the RFC Directors ne of nce ndered by Menzies Cor M orporate The eviden will lie in the VAT invoices ren Restructuring to a CW Co and to Rangers fro late 2010 to Feb 13 2012. If pr W om re takeover in nvoices were paid by Ra e angers then a conspirac exists be n cy etween Our Hero and the Ran ngers person signing of these invo n ff oices. It beggars b belief that th Rangers Board wou pay the Consultancy fees of som he uld C y meone considering buying the club. Unle of course it was a co g e ess onspiracy ) ,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,, ,,,

Paul then goes on to say (verbatim) Prior to the assistance on Rangers, MCR and D&P had not acted for Craig Whyte nor for any of his companies Nor was CW ever a Director ,Partner, staff member or in any way associated with MCR I do understand however that Mr Whyte has an unrelated business and that business is called Merchant Corporate Recovery. My firm D&P and MCR have had no involvement nor association with Merchant Corporate Recovery (Read in conjunction with the previous mistake this seems a ploy to confuse people into thinking that it was the CW firm Merchant Corporate Recovery and not the D&P firm Menzies Corporate Restructuring who advised Our Hero from late 2010 to the takeover date in May 2011) ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Paul then goes on to say (verbatim) The work that we conducted last year for Rangers included assessing the cost and staff structure of the business, revenue forecasts and liaising with HMRC and dealing with the options available for the club on an ongoing basis for its trading and also in the event that an insolvency event arose This work included considering the position in relation to the First Tier Tax Case that is also referred to as the Big Tax Case ,,,,,,,,,,,,,,,,, ( You`ve just said Paul that D&P provided Rangers i.e. CW with advice on dealing with the options available for the club in the event that an insolvency event occurs Are you telling us Paul that D&P told CW last year that his floating charge was worthless? Or even just a teeny weeny bit doubtful? Or was the D&P Consultancy advice at 500/hr a rip off? Orthe plot thickens Did MCR and /or D&P deliberately advise CW last year to do something that would invalidate his floating charge in the event of liquidation? Like not pass the funds though RFC accounts? Was it simply that? Before the CW takeover MCR were instructed by somebody to plant a few time bombs for Our Hero? Maybe somebody connected to Rangers? Or Maybe somebody doing due diligence on MCR before they were acquired by D&P? Time bombs that would explode after liquidation? Time bombs that would show D&P as the good guy and take the spotlight away from David Grier and the bad guys at MCR? ,,,,,,,,,,,,,,,,,,,,,,,,,,, And whats this reference to a merger supposed to be? Could it be that an immediate merger of Wavetower and RFC before Ticketus monies were called up would legitimise the Ticketus deal? Meaning the Ticketus deal would be going through the correct set of accounts A merger that never happened ?) Paul continued Our appointment as Administrators on Tuesday over Rangers was standard practice by a company facing an insolvency situation It was approved by the Edinburgh Court of Session and agreed by HMRC. Just to be absolutely clear on this point we are officers of the Court when we act as administrators and so we are accountable to the

Court. We have a statutory duty to act in the best interests of the Creditors and stakeholders of the business and that is exactly what we will do. This administration will be carried out under the most rigorous public scrutiny and it will be conducted to the highest professional standard. The people who matter most are those that have interests of Rangers very much at heart, the players, the supporters and the staff at the club .I would like to pay tribute at this stage to all of them for the dedicated way which they dealt with David and our staff and have responded to the difficult situation in which they found themselves We have had nothing but assistance and good rapport with the players and staff and indeed the fans when we have met them through the forums As I said the Administration has to be conducted and prioritised in a structured way .There`s been widespread comment and speculation about the financial affairs of Rangers Football Club At this stage its simply not possible to give a detailed report on the financial situation nor am I going to comment on individual aspects of financial transactions at this point. However we can assure everyone that as part of the administration process there will be a full account of the clubs financial affairs and this full account will be published in due course and that will become a public document Furthermore as Administrators We have a duty to report on Directors conduct and that report must be submitted to the Secretary of State for Business within 6 months of our appointment as Administrators This needs to be done in every case of Administration and there will be no difference on this one Our first priority as Administrators was to ensure that Rangers continues to fulfill its function as a football club Its important to clarify how we reached this point. The club was facing financial challenges and a number of discussions were held with HMRC over the last several months regarding a range of current and legacy liabilities. ( Comment One could imagine what Hector was saying in these discussions about our Hero refusing to hand over the income tax and NI he had deducted from the wages of everybody at Rangers) The Directors of the club decided that in view of these liabilities that the club`s ongoing financial position there was little option but to serve on Monday of this week a notice of intention to appoint Administrators. The directors had also hoped that a solution could be found before actually appointing the Administrators within the period of 10 days. The situation however was crystallised during Tuesday when HMRC applied to appoint Administrators themselves The point being they required that appointment to be immediate in relation to the existing liabilities that were due to them. While Administration has been triggered by ongoing liabilities the ongoing tax tribunal and its potential outcome has caused a great deal of uncertainty What a period of Administration will do is remove that uncertainty (A Grade1 Whopper, worthy of Our Hero himself. Does Paul sense the IQ of his audience?) First of all its important to clarify how we reached this point. The club was facing financial challenges and a number of discussions were held with HMRC over the last several months regarding a range of current and legacy liabilities. The Directors of the club decided that in view of these liabilities and the club`s ongoing financial position that there was little option but to serve on Monday of this week a notice of intention to appoint Administrators. The Directors also hoped that a solution could be found before actually appointing the Administrators within the period of 10 days. The situation however was crystallised during Tuesday when HMRC applied to appoint administrators themselves the point being that they required that appointment to be

immediately in relation to existing liabilities that were due to them. While administration has been triggered by the issue of existing liabilities the ongoing tax tribunal and its potential outcome has caused a great deal of uncertainty at the club.in many ways uncertainty has been the clubs biggest enemy in recent times. What a period of administration will do painful though it is, is remove that uncertainty Moving forward and looking to the future We are hopeful that a CVA can be achieved and these are measures that can be put in place and will make provision for all of the clubs liabilities including the outcome of the FTT The Big Tax Case In laymans terms we believe it`s possible to achieve a solution subject to the agreement of the creditors where a settlement is reached and which includes clarity over unquantified liabilities such as the Big Tax Case (He definitely reckons he`s talking to illiterates) As a result of our preliminary assessment we are wholly confident that Rangers will continue as a football club. We do not think that liquidation and the closure of the club is a likely outcome at all (Another Grade 1 Whopper..a bit like saying This Admin nonsense is all down to some clerk in Hector`s office Nobody should be too bothered about it) We have to stabilise the financial position and strive to ensure that from now on that income exceeds expenditure We are in ongoing discussions with HMRC and they will continue, and we will work with them constructively. As administrators we have to look at all other expressions of interest in the club and to date we have received several expressions from parties not currently connected with the club. These will be subject to ongoing discussions and will be examined in the forthcoming days and I`m not going to be in a position to comment on them individually. Finally before I take some questions I would like to say that we fully understand as administrators the 140yrs history of Rangers Football club and we are taking steps to ensure that this great sporting institution will endure Questions What about staff and player redundancies ? Paul I dont think its inevitable but its something that will have to be reviewed How confident are you in reaching a settlement with HMRC on the big Tax Case? Paul I think there`s some confusion and the settlement of the Big Tax Case. If we just talk about that briefly, The actual tribunal has not yet decided what the quantum will be and until such time as it does decide it`s not really for me to speculate how much that will be I cant give any idea but the position is that there are mechanisms and means with which it is possible to satisfy, subject to agreement with HMRC and compromise that debt notwithstanding the fact that the amount is still unknown. So in other words we don`t have to wait for the result of the tribunal before we start that process (Hint We have been reliably informed that Hector`s a Bear) Can you give clarification on why 9m or thereabouts of NI and PAYE wasn`t paid to HMRC and where it now? Um well its a difficult question to answer at this stage but the reason it wasnt paid is that it hasnt been sent, its not paid and there is little doubt in my mind that the number is 9m or so.What one need to understand is that the monies dont get put into a separate account and therefore they are the taxmans monies this is part of the funds

that are involved in the club and the payments just weren`t made but exactly why and whose decision that was thats not something we are yet able to confirm David Whitehouse added this gem These were deductions made at source in relation to PAYE that weren`t then paid over so its effectively been used as a funding tool for the club and I guess ultimately unpaid taxes are not an appropriate tool for the long term funding of the club (You can`t fund a club using unpaid taxes .No wonder these guys get 500/hr) Question If you look at the publicly available information it seems clear that the club should have had enough money to continue trading so the key question really is where has all the money gone and how much money can you look at or has money been placed beyond the reach of the Administrators. Is there any evidence that that has happened Paul I totally agree with you that it is something that needs to be looked into and we have started the exercise but I`m not in a position to provide any clarity as to the answer at this stage Question You have a legal duty of course to report any activities any concerns that you have to the relevant authorities if that happens. Have you seen anything that would require you to do so yet have you done so and do you anticipate having to do so in the future? David We have to carry out a very full investigation into what has happened, we will report those findings in due course .What I would say is that on our evidence we have gathered to date is that the business has been lossmaking Question Its almost certain that there will be no audited accounts this financial year Is that the case? David Thats something again we are addressing at the moment because its one of the requirements to retain European footballing status that we complete these accounts and we need to speak to the company`s auditors Question Am I right in saying that you told the fans forum that you were briefing yesterday that it was almost certain there would be no audited accounts David Well they would be very heavily qualified Does that mean that you will be able to qualify them and Rangers may be able to qualify for Europe? Well thats what we are in negotiations discussion and about Question When you have completed your investigation and looked at everything will you be able to say at some point just exactly how much money was brought into this club on May 6 last year and how much money went out in running costs all of that Could you say how much money came in and where it has gone Paul I think if its appropriate to conduct a review to that level the answer is yes Question Surely its appropriate if the club is in administration? Paul The records that are available within the club as long as we are able to conduct that

work then yes Question You are the guys who make the projections. Are you surprised that the club is in the state its in given what you knew last year? Paul There were always difficulties with the club and of course the Big Tax Case was the big unknown and remains the unknown in terms of the final item of significance on a liability level. But I should perhaps stress we have never been involved with the management of the club We have never been involved in handling the bank account We have never been involved in finding out who was being paid or why they were being paid and so the work that we were doing then is different to the work we need to do now Question Is it not highly unusual to be part of a takeover essentially and then also become the administrators because David Grier a partner in your firm walked into the front doors of Ibrox with Craig Whyte on Day1 and now his firm are the administrators? Paul I think its not unusual in my view but Question I would say it is. David The reality is that when the club was taken over it had a very substantial contingent debt and as a consequence of that debt the management thought it appropriate and it was appropriate to obtain restructuring advice in the event that that debt couldn`t be managed Now as matters have unfolded the level of losses that have been sustained by the club have not been funded through the normal course of trade and have not been funded by the owners who took on the club post the transaction and therefore the insolvency of the club has come about not so much as a consequence of the large tax case but as a consequence of the losses that have resulted since the takeover Question Whats the large level of debt, the club only had 18m of debt at takeover? David Yes but its incurred another 10m of HMRC debt since then and thats what caused the insolvency Question Is there a security on the clubs assets particularly MP and Ibrox? Paul Thats again something that will be subject to scrutiny but on the face of the registered documents at Companies House theres obviously a company that Craig Whyte has an interest in that appears to be the secured creditor .the issue there is whether that security is valid and if so for what amount Question Craig Whyte says he believes Rangers can be out of administration by the next pay, by next month What chances are there of that? Paul I think thats probably optimistic MP and Ibrox are the two main assets. Are those controlled by a company that is not in administration? David Yes

Question Is the company that is in administration the company that owns MP and Ibrox ? David Yes it does But they are subject to a security that we are seeking to verify the validity of and also the quantum of debt which is caught under that security Question What does that mean then ? Well that is a deal that is a matter we are looking at and trying to understand. We have been trying to get information from the company`s former lawyers which we havent yet got but our understanding is that the funds from Ticketus didnt go through the company account, they went through a parent company account. So we dont have visibility of that and thats what we are trying to get from the company`s former lawyers Are Ticketus secured against the assets of the football club ? David No Ticketus dont have security on the assets of the football club Question So you dont know in terms of the 75% creditors needed for a CVA how that breaks up between Ticketus and HMRC? David No because we dont know the quantum of HMRC debt yet because clearly the large tax case hasnt been settled yet Question For properties like MP,the car park and Ibrox are they something thats in this relationship that can be sold off to raise cash to keep the football team playing Transmission faded out