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Administrators welcome Bain move
Rangers administrators have welcomed the decision of former chief executive Martin Bain to drop his legal action against the club.
Bain was pursuing the Glasgow club for almost £900,000 in damages, alleging a breach of contract following Craig Whyte's takeover last May. Last year a judge told the club, which entered administration last month, to set aside almost £500,000 in the event that Bain won, but he confirmed he would discontinue the legal action and return the money frozen "in an effort to help the club".
Responding to the news, Paul Clark, joint administrator, said: "We are pleased Martin Bain has, in light of the present situation at Rangers, offered to drop his action for damages following his dismissal by Craig Whyte whilst chairman. Mr Bain has also agreed to release to the club a significant proportion of the sum that was arrested as part of this action."
Clark added: "He has made plain the litigation was a response to the actions of Craig Whyte and not Rangers FC and given developments he now wishes to end the litigation action and do what he can to support the club in these difficult times.
"Duff & Phelps have agreed to settle the litigation with Mr Bain thereby avoiding the unnecessary costs of continuing with this court action."
Earlier this month, administrators confirmed they had won an initial court order to seize £3.6million held in an account of Whyte's lawyers, Collyer Bristow.
Court proceedings are now set to take longer to conclude with Duff and Phelps seeking "substantially larger claims", believed to be a further sum of more than £5million they believe Whyte owes the club.
The statement from Clark continued: "On other litigation matters, on 23 March the High Court in London ordered that in addition to the current proceedings regarding the £3.6million that was transferred into the safekeeping of the administrators' lawyers, Taylor Wessing, the parties with claims against Collyer Bristow (the former lawyers to Craig Whyte and Rangers FC) should bring their claims by 16 April 2012.
"This has widened the court proceedings because we have substantially larger claims against Collyer Bristow, which we wish to bring as soon as possible.
"The original trial dates of 30 March - 4 April are now not being utilised as the wider claims are still being formulated. A further hearing will take place as soon as possible after the deadline for claims against Collyer Bristow of 16 April."