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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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  2. TopCorner on

    shug bull-speak !

     

    wrong-doing “by ONE man”

     

     

    NOT !!

     

    the report clearly condemns a variety of rfcia employees !!!!!!

     

     

    not only Whytey

  3. sixtaeseven: No NewCo in SPL and it's Non-Negotiable! on

    KevJungle – “1st Flag on the JUNGLE roof for, LENNONS LIONS”” on 11 May, 2012 at 18:22

     

     

    Yes, that list only concerns the SPL years, which is bad enough.

     

     

    The “financial mismanagement” probably kicked off when Souness came to Rangers from Italy (86/87 season) and they started signing the big English names of the time (Butcher, Woods, Wilkins, etc).

     

    You’re right enough: le Petit Merde (89) was during that infamous period.

     

     

    So the LEST WE FORGET list is obviously much longer than what I posted…

  5. Bloke109 is Neil Lennon on

    Keevins: ‘the report, which you will be ablle to read in your newspapers tomorrow’.

     

     

    I read it on my phone on the train home this afternoon. Hugh just doesn’t get it. Any of it. At all.

  7. Auld Neil Lennon heid on

    So if a CVA cannot be done its the blender?

     

     

    Will it be a smoothie wan?

     

     

    Orange juice of course.

  9. sixtaeseven: No NewCo in SPL and it's Non-Negotiable! on

    Did the flying pig have four contracts?

  18. miki67 on

    I know that truly terrible things happen al over the world,and in our own neighbourhoods every single day. But this RFCIA fiasco has been the best light relief and emotional rollercoaster we could ever have evr wished for over the past 3 months.

     

    It’s shown up so much and been essential viewing every day.

     

    ‘The Killing’ couldn’t have done better for a riveting tale.

     

    Someone somewhere will raise a statue to C.W.

     

    Complete Walloper.

  19. voguepunter on

    bournesouprecipe on 11 May, 2012 at 18:51 said:

     

    “I can’t see into the future because it hasn’t happened yet”.

     

     

    Brian Kennedy

     

    —————————————————————-Did he inherit his money?

  20. Joe Filippis Haircut on

    Glasgows Charlie Green and Whyte, Glasgows Charlie Green and Whyte. H.H.

  23. googybhoy ♥ Celtic and Integrity on

    This is the first time I have listened to Radio Clyde in 30 years.

     

    It is absolutely nonsense. It sums up all that is wrong with Scottish Media.

     

    Journalists from local newspapers advertising their papers for the next day.

     

    Journalists who claim they cannot expect to know about administration and football finance cannnot even read a major report from the SFA before going on air.

     

     

    Chancers

  24. the long wait is over on

    Genuine question

     

     

    What are the rangers fans protesting about?

     

     

    Are they creditors?

  26. voguepunter on

    blantyretim on 11 May, 2012 at 18:55 said:

     

    I can see the future…

     

     

    wine.cider, port…well thats only tonight…

     

    ————————————————

     

    I can see even further into the future….

     

    bt spewin into the bog the morra.

  27. leftclicktic on

    To the STUPID STUPID STUPID HUNS yeez are to late

     

    HAHAHAHAHAAAAAAAAAAAAAHAAAAAAAAAAAAAAAAAAAAAA

  30. RobertTressell on

    Which current SPL club is most likely to become our closest rival now?

     

     

    Interesting times ahead for the SPL if the other clubs would embrace it.

     

     

    Old Rangers dead. New Rangers increasingly looking like having a very prolonged ‘incubation’ period.

     

     

    Anyway, I’m just in from a run. Been a long week. Shower, grub, beer or two by the fireside, contented smile and a good nights sleep.

     

     

    It’s great to be a Celtic Supporter!!!!!!!

  31. praecepta on

    KevJungle – “1st Flag on the JUNGLE roof for, LENNONS LIONS”” on 11 May, 2012 at 18:47 said:

     

     

    It’s the interpretation – basically amounted to him getting a £150K signing-on fee. Who knows what Judas did with the sum – paid HMRC?

  33. miki67 on

    Orcs gettin’ ready to frenzy.

     

    ‘Massing’ at iPox in their dozens.

     

    The rest are too drunk to find their way.

  34. the long wait is over on

    Googybhoy

     

     

    Three panellists only one of whom has read the judicial report. Possibly the most important document in the public domain about Rangers.

     

     

    Amateurs.

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