Soccer: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 (€1,077,000) in damages, alleging a breach of contract following Craig Whyte's takeover last May.
Last year a judge told the club, which entered administration on February 14th, to set aside almost £500,000 (€598,229) in the event that Bain won his case.
However, he confirmed today he would discontinue the legal action and also said he will return the money frozen as part of his case, minus legal expenses, to the administrators “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. 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.”
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