Last checked at 12 Mar 2012 07:00
For immediate release 12 March 2012
Worthington Group Plc
("Worthington" or "the Company")
Statement re legal action by pension fund trustees to recover funds from the Administrators of Glasgow Rangers Football Club.
The trustees (" the Trustees") of the Jerome Group plc Pension Fund ("Pension Fund") have informed the Company that they are co-claimants in proceedings which have been brought in the High Court to determine the proper ownership of funds in the hands of solicitors acting for the Administrators of Glasgow Rangers Football Club (the "Club").
The Trustees had provided funds amounting to £2.925 million to solicitors acting for the Club when considering the possibility of making a fully secured loan. These funds were being held to the specific order of the Trustees. The Trustees gave no authority to the Club's solicitors to release the funds and the sums held until recently in the Club's solicitors account (and since transferred to the Administrators' solicitors' account pending resolution of the current litigation) include the fund of £2.925 million held to the Trustees' order. However the Trustees now understand that the funds may have been the subject of an unauthorised release to the Club in breach of this undertaking prior to the Club entering Administration.
The Trustees have acted at all times in accordance with very detailed legal advice. The Trustees also obtained favourable independent commercial advice concerning the proposed advance, as required by the Pensions Act, from an independent firm authorised and regulated by the Financial Services Authority to provide such advice.
The Trustees have been advised by their lawyers that they have a very good claim for recovering the funds from the Administrators and/or the solicitors. In the event that there is any change to the legal advice we will update the market accordingly.
It is confirmed, in the light of press speculation, that Liberty Capital Limited (a company associated with Mr Craig Whyte) holds 7.54% of the Company's issued share capital. Mr Whyte has no involvement in the management of the Company or the Pension Fund. The Trustees also confirmed that they sought and obtained specific legal confirmation that this holding did not prejudice their ability to advance the funds if that had ultimately been their decision.
As the matter is subject to litigation no further comment can be made at this stage.
Website: www.worthingtongroupplc.co.uk