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

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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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  1. kelvinbhoy on 11 May, 2012 at 19:26 said:

     

     

    Your is just what I would expect 10/10

     

    Well done.

     

     

    Haud oooooannnn,whit dae you mean,me starting

     

    fights?

  2. fanadpatriot on

    Hamiltontim

     

    I know it is easy to say,but you should have either questioned the issues,or called the meeting to a halt.

  3. HamiltonTim

     

     

    Hope you’ve reported this back to head and providers. Not every teacher is going to be educated enough to point out the errors in the production.

     

     

    S

  4. Stupid huns…

     

     

    RANGERS administrators Duff and Phelps

     

    have released the following statement .

     

    David Whitehouse, joint administrator, said:

     

    “The most important information today for

     

    Rangers supporters is that discussions with

     

    two bidding parties are at a very advanced

     

    stage and we hope to reach agreement with

     

    one at the earliest opportunity.

     

    “We have noted today the publication of

     

    reasons for the findings of the SFA’s judicial

     

    panel.

     

    “We welcome the fact that the panel

     

    described the witnesses who appeared on

     

    behalf of the Club at the hearing as credible

     

    and reliable but as stated previously we

     

    were very disappointed that the panel did

     

    not differentiate sufficiently between the

     

    actions of the Club compared with the

     

    actions of individuals. We look forward to

     

    the appeal being heard next week.

     

    “It is most unusual for us to comment

     

    publicly on individual bids but due to the

     

    allegations made by Mr Kennedy and Mr

     

    Murray today with the regard to our conduct

     

    as administrators we feel compelled to

     

    reveal important facts in relation to the

     

    various Blue Knights attempts to buy the

     

    Club.

     

    “For the avoidance of doubt some of the

     

    comments made at today’s press

     

    conference were grossly misleading.

     

    “First I would state unequivocally, that every

     

    opportunity was afforded to these parties.

     

    “The fundamental reason we could not

     

    proceed with the Blue Knights/Ticketus

     

    combination was that we were advised there

     

    was not agreement within the consortium in

     

    relation to the funding of their bid.

     

    “Throughout the process Mr Kennedy told us

     

    repeatedly he would be the ‘last man

     

    standing’. As Mr Kennedy today made a

     

    virtue of explaining publicly details of his

     

    bid we are in a position to comment on

     

    those remarks. Of the £5.5 million cash on

     

    ‘day one’ figure Mr Kennedy quoted, £3.5

     

    million of that would be provided by us in

     

    any case from the Club’s debtors.

     

    “The bid structure also factors in

     

    performance in Europe, and reaching the

     

    later stages of the UEFA Champions League

     

    which cannot be achieved next season for

     

    example.

     

    “We therefore find it extraordinary and very

     

    disappointing that Mr Kennedy in particular

     

    should assert that the amount being offered

     

    is irrelevant. Time and again he and others

     

    have been afforded the opportunity to

     

    become the best bid in play and it has not

     

    happened. We have a statutory duty to

     

    accept the best bid that is deliverable.

     

    “The bid should also be commercially

     

    better than the liquidation of the business.

     

    Mr Miller’s bid was deliverable but he chose

     

    not to proceed. We firmly believe the best

     

    interests of the Club would be served by all

     

    involved in the process respecting the

     

    bidding process.”

  5. sparkleghirl on 11 May, 2012 at 19:21 said:

     

    Why are there always strange snuffly noises in the background on Clyde?

     

     

    Hahah was just wondering that myself. I think the ones that are not talking at any given time are playing shove ha’penny, or something.

  6. William, the Celtic ST holder, insisting he and his daughter will not renew if Hvns not allowed back in next season,

     

    Celtic ST holder my arse; plus his name is William!

     

     

    Wish Keevins would ask him which section he is in.

  7. Citibhoy Shoulder to Shoulder with Neil Lennon on

    Who is this nugget on SSB now….. anyone sit next to a “william” with a teenage daughter at Celtic ?

  8. Snake Plissken on

    William the Celtic fan who won’t renew without Rangers games?

     

     

    Hmmmmmmm

     

     

    I take it the guy doesn’t like the CL

  9. 'crushed nuts?' 'Naw, Layringitis!' on

    SNYDE are trying to read the judgement, Snivveller: ‘we all know who’s to blame!’

     

    nugget on now: ranjurz have to be in SPL next year, that’s William, by the way!

     

    Snivveller: now quoting NFL, That’s why we shouldn’t say anything!

     

    William thinks you buy a season ticket for the ranjurz game! glad he won’t be back!

  10. fanadpatriot on

    Who is this clown on Snyde now,Celtic supporter,saying We want buy season tickets if the Rankers are not in league,idiot?

  11. Well done ‘William’ for ‘underlining Keevins’ point ‘thousands of Celtic fans will not buy season tickets if there’s no Rangers in the SPL.’

     

     

    Serious question. Is anyone thinking that? I find it remakable I have to say.

  12. Well done Michael on SSB, fantastic, who is this prick on now, feck off and give me your season ticket, his name is William, says it all.

  13. Bloke109 is Neil Lennon on 11 May, 2012 at 19:26 said:

     

    KevJungle

     

     

    No chance. Apart from my belief they won’t exist for next season, there’s no way Celtic will do as you say.

     

     

    Wait and see. The Celtic Board have studiously avoided the pleas of the fans to distance US from THEM in matters such as shirt sponsorship deals.

  14. borderlandbhoy on

    oooooooooooooooooooooooooooooooo ti see that smug, cheesy, slow hand clappin when we’re winnin, overweight, watty cardigan wearin, bawheeded, sue barker’s arse suckin, mouthy, unfunny, incoherent, tit of a blob mcmoist sobbin.

     

    please please please big man upstairs, if you only grant us 1 thing in life let me see him break doon on ma telly

     

     

    met the tube once, verdict = as above

     

     

    hh

  15. 4greenfields/Kelvinbhoy

     

     

    Yep we spoke!

     

     

    I had a run in with him last year. He happened to be doing the workshop the day after I’d witnessed our manager being attacked at Tynecastle.

     

     

    A wean replied that that was an example of sectarianism. He replied that there was no evidence of this and the motives could have been wide and varied.

     

     

    I informed him that I had witnessed the previous evening’s events first hand and was in no doubt what the motives were.

     

     

    He didnae appreciate when I pointed out that as long as attitudes like his prevailed then sectarianism and lack of understanding would persist.

  16. If anybody buys a Season Ticket solely for the purpose of going to see Rangers – I’d gladly live without them.

     

     

    Keevins pointing out that it seems daft to punish Celtic (by not buying season tickets) for Rangers’ behaviour. Strangely have that feeing of agreeing wiht Keevins. Feel a bit queasy now.

     

     

    S

  17. Son of Warsaw on

    William on Snyde, dont go back to Celtic Park. You’ll not be missed.

     

     

    Fool.

  18. sparkleghirl on

    FourGreenFields on 11 May, 2012 at 19:30 said:

     

     

    That they haven’t read it speaks volumes about their professionalism as ‘journalists’ or opinion givers.

     

     

    How can your opinion be vaild if you refuse to consider all the information at hand.

     

     

    Keevins you’re a disgrace to your profession.

  19. Jeez the guy on Clyde is plain wrong but are you guys saying you cant be a Celtic supporter if you are called William. I better tell my brother Billy who was taking meo away games in he sixties.

     

     

    Get a grip of yourselves.

  20. voguepunter on 11 May, 2012 at 19:28 said

     

     

    Cheers mate – took the auld man up to Celtic Park for a very short walk about and a couple of photos with the kids at the Jock Stein statue etc last week. Trying to get him out and about but he is still a bit unsure about going for a couple of beers. Working on him though—maybe if the soggy buns would hurry up and die, he might just make it to the Vogue.

  21. quonno on 11 May, 2012 at 19:28 said:

     

    ………………………………………………………

     

    I believe the GB have made an announcement that, they won’t renew their SB’s until the hun-situation is sorted out, preferably by Celtic landing the killer blow!

     

    The GB are the leadersof the future and, ‘our’ bored would be making a BIG mistake to underestimate the influence of the GB! IMO!

     

    P.S. As Terry O’Neill has often said…..”Celtic Park would be like a library without the GB!”

     

    Hail Hail

  22. KevJungle

     

     

    I think your fears will prove to be unfounded.

     

     

    Celtic now seem to be bringing through a very good standard of player and without Rangers around there will be more chances to bring through more of these talented kids, all the way through to established first team player.

     

     

    Whilst we are still in Scotland this is the best way to go about things.

  23. Mark \o/ McGhee's \o/ Eyeliner \o/ AKA Mark Guidi on

    William won’t be back unless the cheats are in the SPL

     

     

    I bet William will be buying a ticket for the trophy presentation if we win it next year without them

     

     

    You won’t be missed William

     

     

    Hail hail

     

     

    MME

  24. Question for those threatening not to renew season tickets in event of newco.

     

    Will you be happy to go along with a CVA where creditors, including Celtic and the Taxpayers get shafted?

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