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Blue Knights lay it on the line: Newco will fail, too late for CVA

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By on CQN BLOG & Comments

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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  1. hamiltontim on

    Knoxy

     

     

    I genuinely don’t know how you and your family cope, it is so humbling to watch that and really does make you think.

     

     

    May God keep you and the wee man safe.

  2. mighty tim on

    Knoxy that wee video puts everything in my life in perspective.

     

    God bless the wee mhan and you and family.

     

    Thoughts and prayers are with you all.

     

     

    Hail Hail Oscar

     

     

    HH

  3. The Good Ship Celtica. on

    knoxy2000,

     

     

    I’m sure it is for the best. He’s a brave boy and a credit to you and yours.

     

     

    My best wishes to you all.

     

     

    TGSC,

     

    Sailing On….

  5. THE EXILED TIM on

    Knoxy

     

     

    My heart goes out to you amigo.

     

    Please don’t take this the wrong way.

     

    Please read up about ESSIAC, not saying it will help, it helped my Ma, and countless more, it must be worth thinking about, it will also help with the side effects of his treatment as well.

     

    If you decide it might help e-mail me, I will tell you where to get it, it’s very cheap, about 40 pounds for a 6 month supply.

     

    Sorry if this offends you, it’s not meant that way, I only want to help.

  8. Kilbowie Kelt on

    knoxy2000 eating Jelly and Ice Cream and supporting Neil Lennon on 11 May, 2012 at 23:11.

     

     

    Thanks, Knoxy.

     

    Humbling & inspiring.

     

    God Bless Wee Oscar.

  12. petec on

    The Legend Johnny Doyle on 11 May, 2012 at 23:01

     

     

    The way things have transpired, I don’t think you could discount your theory and I reckon there is a certain plausibility about it. Just don’t let the inmates on FF hear this, as they will be seriously confused. ;)

  13. Chaplin on

    Roy Croppie

     

     

    are you too young or did you ever have the privilege of “tripping ” on the stairs in the Tudor Hotel ?

  15. Marrakesh Express on

    I read a few crackin posts earlier in the week, possibly forrest or auldhied, discussing the socio/political/football superiority status afforded to the hun in this country. Recent goings on have well and truly nailed that theory. I realised from about the age of 17 that we (RC with or without Irish origin who also support Celtic) are up against it in Scotland. I have to admit that 40 years later I am still surprised at the level these priveleges run to. If CFC were in such a dire position, you can bet your house on the media frenzy being in total reverse of what we currently witness. There would be no tears of sympathy from Salmond, Doncaster or Traynor. CFC would be damned by everyone, banished to the League of Ireland or some pub league. It would be no catastrophy for Scottish football. It would be serious punishment or good riddance.

     

    A well-read guy I worked with 20 years ago told me that many people in certain places still regard us as ‘just passing through’. I know its a divisive term but there are almost one million of ‘us’ in Scotland now, and yet I still get the feeling my mate spoke of. Its a sad indictment of this wee country and in my opinion has been promoted by the preservation campaign of the one single organisation which has heaped more shame on Scotland than anything else. And yet, in a way, I see every negative story coming out of Govan as adding to the kudos of Celtic Football Club. The Worldwide reputations of the respective clubs are now poles apart. You would think WE would be the club to protect and cherish. Not in Scotland.

     

    hh

  16. Chaplin on

    BT

     

     

    I’ve been trying to get tickets for next Friday, to no avail, can you help ?

  22. roy croppie on

    Want a laugh? The Bill Struth hurts for a poster on R’gers Media:

     

    Having just driven past Ibrox to see how the “protest” went, there were around 10 poor souls in a state of despair – gutting it was.

     

     

    Unless there’s the biggest turnaround since Helicopter Sunday and the administrators come to their senses and get on the blower to Brian Kennedy then we will be liquidated – no doubt about it.

     

     

    The other bidders ? They will liquidate us because there’s no time to carry out due dilligence for a CVA.

     

     

    The apathy within our support has killed off Rangers and moreover, the Protestant following that adore the club. We have failed Rangers and all that the club stands for.

     

     

    Celtic have won. The Catholics have won.

     

     

    Shame on us.

     

     

    Hahahahahahahaha

  25. hamiltontim on

    Lennybhoy…Supporting Neil Lennon and CFC until I die on 11 May, 2012 at 23:26

     

     

    hamiltontim:

     

     

    Unfortunately not mate, party in County Coatbridge…:)

     

     

     

    ——————————————————————–

     

     

    They closing down the town of Airdrie???

  31. O.G.Rafferty on

    Lennybhoy, I hadn’t seen it so thanks for pointing it out. If you can back it up with anything more solid you can get my email from Paul

  33. blantyretim on

    I’ll keep them aside for you and see you Friday..

     

    a few CQNers should be in attendance.. and Hutch will be there…

  34. knoxy2000 eating Jelly and Ice Cream and supporting Neil Lennon on

    TET

     

    No offence taken at all. I am very interested in ‘alternative’ treatments, particularly Curcumin. Apparently it ‘kills neuroblastoma like Raid kills bugs’! Its difficult to pin someone in the know down for info, or to talk about giving it to a child, and the internet is not to be trusted!

     

     

    I am of the opinion that there are fantastic natural cures for cancer out there, but the big pharmaceutical firms are making billions on chemo drugs so noone is exploring these treatments enough, for various reasons. Mainly because there is no money to be made from them.

     

    Curcumin is basically just the yellow part of Turmeric, the spice.

     

    I will read up on this tea you mentioned. I think you actually posted this for me before but that was in the early days so i forgot about it.

  36. 67Heaven ... I am Neil Lennon..!!..Truth and Justice will always prevail on

    They used to be loud-mouthed fuds …… Now as silent as lambs…

     

     

    Night all ….. Sunday is getting CLOSER …. !!!!!!!!!!!!!!!!!!

  37. petec on

    THE EXILED TIM,

     

     

    You are being honest and speaking from the heart.

     

     

    I would encourage everyone to cut out Aspartame and MSG products from their diets, IMO products which have them are not fit for consumption and are more than likely harmful to humans.

  40. Bhodran Man on

    Just logged and noticed Knoxy video, having worked in the nuclear industry I can say the difference in readings would have most people scared s£&@less.

     

    What a brave wee Mhan Oscar is, please God give him strength.

     

    Please give the strength to the parents as well.

     

    Night friends

  42. hamiltontim on

    Lennybhoy

     

     

    Undercover spies…..I like it!! :-))

     

     

    Night and God bless Bhoys.

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