This afternoon the Blue Knights (plural!) held a media conference as Paul Murray and Brian Kennedy explained their “credible plan” to rescue Rangers. The quantum of their bid was:
£5.5m cash on delivery of a CVA, £500k of which is for delivery of Craig Whyte’s shares.
£2m dependent on European earnings in the coming years.
£3.5m the company will collect from those who currently owe Rangers money.
Uefa have confirmed that they regard UK companies who dispose of debts via a CVA to have breached their insolvency rules and therefore be ineligible for European competition for 3 years.
It is likely that the administrators or any liquidator would be able to collect much or all of the £3.5m earnings from Rangers debtors.
Mr Kennedy said “the tax case is irrelevant to this CVA”. Mr Murray was a director of Rangers during their controversial EBT period which led to the big tax case. The tax authorities may consider the “the tax case” more relevant than Mr Kennedy.
Mr Murray and Mr Kennedy were both clearly exasperated that Duff and Phelps felt unable to accept their offer to take the club through a CVA. Mr Kennedy could not have been clearer that attempts to establish a Newco would fail, that only a CVA would enable Rangers to survive and it was now too late for this. On Radio Scotland last week Mr Murray explained that, in his view, a CVA was necessary as a Newco could not survive without European income for three years.
Throughout the media conference it occurred to me that perhaps they don’t know Uefa’s rule on a CVA. Unfortunately the question was not put to either man by the media. When asked if they knew if the other bidder had put more money on the table Mr Kennedy said, “I don’t care if [ours is]the largest bid”. Perhaps, but creditors will, and under an enormous amount of scrutiny, Duff and Phelps are likely to car a great deal.
It will be interesting to hear how Duff and Phelps respond but in summary, my two key questions are:
Would HMRC accept a CVA from a director of Rangers during the operation of their EBT scheme?*
How deliverable is the £2m dependent on European income considering a CVA would exclude Rangers from European football for three years?
The plan was flush full of irrelevant details they had clearly spent a lot of time on, such as the non-exec support of former managers, and a Rangers FC Constitution, forbidding the club from spending more than it earned, but sounded light on how it would convince HMRC to accept a few pennies in the pound from a company with such a chequered tax history, and was potentially slapdash on the European income element.
*Mr Murray suggested he would withdraw from the consortium if Craig Whyte objected to his participation but the lack of attention to HMRC’s view on him appeared to be an obvious oversight.
You can buy a hard copy of the new issue of CQN Magazine via Magcloud here.
The graphic below is just for a flick through, to read the magazine go here to it’s dedicated site.
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I can just picture Duffield angrily stuffing his well rehearsed speech into his Paul Murray sanctioned mackintosh.
Heard the Krankies are the new swingers, OOPS sorry bidders!!!
Oh how we laugh.. Let’s all laugh at Rangers.. Ha ha ha ha..
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS on 11 May, 2012 at 17:02 said:
I was going to wish you ‘good luck’ but after mentioning my well stuffed armchair.
Get stuffed ya bam.
Regards vp
Ernie lynch
The magazine foul had a great exposé on the I roc disaster, later reprinted in the “foul book of footballl”. It was out late 70s. Well worth a re ad if you can get it.
Hail hail
Ggh
Kennedy on SSN now
“I hope Charles Green knows what he is doing, I hope Paul Clark knows what he is doing, I hope David Whitehouse knows what he is doing. If not, they will have blood on their hands”
What a charming fellow he is
LiviBhoy on 11 May, 2012 at 16:51 said:
Gordon_J backing Neil Lennon on 11 May, 2012 at 16:52 said:
I thought that was the case, so possibly more penalties to come, even before the SPL findings on two contracts delivers. even without the financial mess they are most likely dead. Good.
The Spirit of Arthur Lee on 11 May, 2012 at 16:51 said:
Doc
Im sure they will get even more penalties next season in whatever league they are in.
I laughed when I read that, Central Welfare league refs are Huns with whistles;-)
as he suddenly realised that it was the other Smith that Brian was was courting…
Ten Men Won The League on 11 May, 2012 at 17:20 said:
Watching it myself. Thought that was a shockingly irresponsible statement.
SSN just now. Boke indusing!
Kennedy on being interviewed by Jim White, embarassing, like the only an excuse ‘Brian, what are you so good’.
Kennedy on about the dream team of Souness and Smith would be back if his bid was accepted
This weekend Celts get a trophy
whilst Ragers get atrophy.
OG…,
cheers, more fun next week, gives me the feeling the true extent of corporate financial irregularities will be an even bigger bomb :o)
Kennedy laughs when jim whyte says he is worth £600m,what a wee fud jim whyte is
Jim White on SSN desperately trying to get Brian Kennedy involved in some capacity with the new preferred bidders.
PAUL67 1717
D&P have made such a mess of this whole affair that I can see creditors suing them as they have been negligent in their sworn role to maximise the return.
I hope their liability insurance is up to date.
Brian Kennedy just said on sky sports news that Duff & Phelps will have blood on their hands.
That is utter disgusting!
I bet the totally delusional bears are lapping this muppet Kennedy up
Kenny Powers indeed
Green and whyte and last signing was Celtic.
they are trying to be us.
The Blue Nits do do walking away.
Paul67
The one key thing I hoped for was that whatever launch platform Rangers would move from in the coming year it was that they would be denied UEFA money for 3 years.I am delighted UEFA take such a poor view of clubs evading their civil responsibilities via CVA.s It is a pity the SFA/SPL do not take a similar approach. Also good of UEFA to throw in the curve ball at the last minute.It is a killer.
It was the decision to chase CL money in 2007/08 when they were aware of the tax avalanche hanging over them that did more than anything to screw up our game.
They could have used transfer in income of £19M in 2007/08 and not spent an additional £10M just on transfers, (savings from higher wages not included) to have paid off what was a £24M core tax bill and still had enough for a reasonable wage bill.
Their titles from 2009 to 2011 have come at a terrible price for them and the guys involved (and that includes Walter Smith) who made that decision stand guilty of crimes against their club and Scottish football.
Celtic supporters turned on each other as Rangers bought their way to oblivion. It was always going to be so, it was only a matter of time but as I have said before infinite patience produces immediate results. and you have been patient for a looooong time.
So the Cardigan and the Beast were going to use their “expertise” to improve their footballing fortunes.
Without MONEY and OBSCENE MONEY Walter Smith and Souness would never have won a damn thing in Scotland or anywhere else.
Do you wonder why the administrators don’t want to deal with Kennedy? He openly admitted that he had been in contact, behind everybody’s back with Bill Miller and other bidders in an attempt to “advise” them. I’m sure this was probably brought to the Bluff and Bluffer’s attention by prospective bidders.
bye bye rangers
Now for THE party of all time on Sunday.
Hear The Thunder!
Are we finally out of the up n down, boom n bust yo yo moodswing and as Yazz and the Plastic Population would say, ‘The only way is up’?
I do hope so. I fear I may not be able to take a mood melting ‘Banking Quirk Means RFC Own All Money On Earth’ headline. Although ‘Rangers Players To Be Sold For Meat’ is more likely.
I need at least 3 ‘don’t worry they are finished’ posts in the next page to keep my happy happy joy joy frame of mind intact.
THE WAR IS OVER…..THE BLENDER HAS WON
LIQUIDATION!!!
VOGUE PUNTER 1719
Sorry,mate. I thought it might feel better coming from a stranger rather than one of your so-called mates!
Best of luck tomorrow too.
One winner since November sums up my Saturdays-thankfully Cheltenham is during the week,or I’d be poorer than a church mouse wi a Rangers strip.
BSR @ 17.22
Superb! Up to your usual standard.
Kennedy came across in many ways so much like Sounness; arrogant, bullying and not very nice.
Will be interesting to see the mob reacting.
I suspect they will all be ra-ra for these muppets and if I were D&P employees I think I would high-tail it out of Glasgow.
The average bun thinks D&P are there to do the best for them not the creditors.
btw…..for some fun have a look at the Sheffield United blog. Seems they are not minded towards Mr Greene.
To me it’s more like a marriage made in heaven.
http://boards.footymad.net/forum.php?tno=463&fid=221&act=1&mid=2114784149
In the last three weeks, Brian Kennedy has become a lifelong Rangers supporter. What a strange interview on SSN.
I wonder how Kennedy will be treated by his fellow Hibees at cup final?
How can a newco survive without European cash? I’ll tell you how , Mr Murray.
The same way every other 3rd division team survives (assuming they get in).
That is by living within the means of a 3rd division club and having immediate aspirations which are no higher than getting into the 2nd division. Lets hope sally would still be in charge in such a scenario as there is no way he has the management skills to do that with the standards of player which would be at his disposal. HEhehehehe
The Blue Knights & Kennedy’s dream team are as tainted as they come CVA with other peoples money, what planet do these people live on?
Oh and my thoughts on the Thai Tims last night
WE ARE MORE THAN A FOOTBALL CUB!!!!!!!!!!!!!!!!
Im so Proud to be a member of the celtic family
Us = everything that is GOOD
thems = well they disgust me, corrupt & rotten to the marrow.
us = Neil Francis Lennon
Them= Insidious sally
O.G. please pass on my thanks to AT .
HAIL HAIL
Leftclicktic. congratulations & well done m8.
Is this the Charles Green of Formation Group Plc, London E2
From the 2011 Report and Accounts
As stated last year, this area of our business has
and will continue in the short term to come under
pressure. Bank debt, is in short supply with banks
being more selective and aggressive with their terms.
This situation reduces our ability to expand and that
of our prospective clients.
Last year the Group acquired Proactive Sports
Management Limited (a previously owned company),
primarily to assist in the conduct of various sports
related litigation cases. The company has no
employees and no longer manages sports personnel
but is being operated to finalise cases in litigation.
Independent Auditors –
Emphasis of matter – Going concern
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the
disclosure made in note 1 to the financial statements concerning the group’s ability to continue as a going concern.
The group incurred a net loss of £11,278,000 during the year ended 31 August 2011.
As explained in note 1, the ability of the group to continue trading as a going concern is dependent on the realisation
of profits due to the group from its share in the profits of The Whitechapel Development of £870,000 and income of
£200,000 from a construction contract which has yet to be secured.
These conditions, along with the other matters disclosed in note 1 to the financial statements, indicate the existence
of a material uncertainty which may cast significant doubt about the group’s ability to continue as a going concern.
The financial statements do not include the adjustments that would result if the Company was unable to continue as
a going concern
miki67 on 11 May, 2012 at 17:29 said:
http://www.scribd.com/doc/93212354/SFA-Rangers-Note-of-Reasons
And there you have it.
miki67 on 11 May, 2012 at 17:31 said:
Oh well….I tried to paste the relevant paragraph….but it won’t have it.
TFOD again!
Still it’s ALL there.
Paul67,
Quality articles, including this one, over the last few months and I’ve just heard your audio clip on the BBC last night. You didn’t sound like an internet bampot, surely something is wrong.Traynor and Young sounded every bit the bampots they really are though. I am sure the casual listener would want to hear less of those bampots and more of yourself. Excellent stuff last night.
The Village Green Preservation C.S.C. on 11 May, 2012 at 16:57 said:
So the new bidder goes by the name Charles Green?
They’re going to just love his surname.
Glasgow’s Green and Whyte.
———————————————-
Brilliant.