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.
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Jobo
I broke the blog when I was singing the hymn you started whilst making a big fry up.
This truly is the day the Lord has made.
Kitalba, I am positive he works for KPMG seen him at the masters this year representing them.
Good morning everyone from a mixed bag of weather here in D-land. It’s past the witching hour of 9am as suggested by ole blood-on-their hands. Are they dead yet?
If this is is how the MSM, heads in the sand brigade, are reacting to the relatively minor misdemeanors of the huns under CW, just wait until the BTC, EBT’s and dual contracts under Sir Duped come under scrutiny. Now, directly or indirectly that is the same as match fixing!
Good morning CQN from sunny Fife
Prince Charlie the weather man said there will be big black clouds and tax men over Ipox for years to come
Keep the faith
Hail Hail
lymmbhoy
good to hear, give the kids a hug from all of us.
Gies a clue with the username doh!
A googly eyed boay did it an ran away.
Don’t know how I done it but I will take rap for it. Sorry folks.
Last CQN Coupon for season 2011/2012, the season in which CFC1888 became Champions…and RFC (IA) are killed off (metaphorically speaking before I am accused of incitement)!
AWATR – Ayr
BT – Dunfermline
LB – Dundee Utd
PF – Hibs
TTT – Bolton
EN – Wigan
GL2 – Norwich
Jobo – Aberdeen
Keep the Faith!
Hail Hail!
new article posted.
How’s that then.
Just read the FF funnies from earlier,be in no doubt,the huns know its the end of their history,5 stars gone,finished,finito,what emerges after liquidation is ground zero and they know it now.
The summer is in the post,I hope its one of those sweltering hot bastards too that everybody can be seen out n about in shorts n tee shirt,where every corner you turn ladies are giggling half dressed,weans are playing everywhere and the guys sit having a nice cold beer tuning into the Euros,shades,music,jelly n ice cream.
Life is about to get rather peachy.
kitalba was your post about Donald McInnes aw nawed or straight up. Surreal if it is a direct quote. Real or not it is thought provoking to say the least. My Mum and my blue nose side of the family are McInnes. They have their strengths as well as their bad taste in football teams. Of course I would welcome my cousins children into our family and a Glasgow Celtic team. It’s a pipe dream to think that the Glasgow divide could be joined but it doesn’t need to be nasty. One of my McInnes cousins never misses a game and I haven’t the heart to comment on his facebook. He is married to a springburn girl who has a season ticket in paradise. If the newco cuts the rot out of its support it would almost be bearable but reality is it won’t escape the orcs. Still good to see some of the people seeing the light. Tomorrow may be the very last day of Rangers FC. I will celebrate as if it is. The sooner their miserable bigoted cheating shameful corrupt history is exstinguished the better.
Kitabalda@8.12am
I am in Buenos Aires, Argentina and fours hours behind you.
Many thanks for posting that Daily Record front page. Whilst we all know their end is close it was remarkably uplifting to see Downfall feature so prominently.
My dearest wish would be to show that page to the generations of Celtic people who suffered so much discrimination at their hands.
As I walk out this bright sunny morning I might just go to the Cathedral and light a candle for parents and grandparents who will be smiling today. By the way outside that Cathedral there is now a permanent protest camp over the Malvinas- but that is another subject for another day. Time for coffee on Avenida Belgrano.
Have a great day tomorrow.
Hail,hail.
Apologies- KITALBA!