CVA appears an impossible dream for Ibrox former football club

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Anyone wondering whether or not former football club, Rangers, will be able to agree a CVA with its creditors in the weeks ahead would do well to pay attention to joint administrator, David Whitehouse, of Duff and Phelps.

In his retort to Friday’s press conference by Paul Murray and Brian Kennedy, Whitehouse told Ewan Murray of the Guardian:

“HMRC have made it very clear that they don’t believe in the football creditor rule so it would be contrary to stated policy to accept what the Blue Knights are proposing. Brian Kennedy and his lawyers and advisers are aware of that.”

HMRC conditions for supporting a CVA require debtor companies to “treat all creditors within the same class equally”.

In this instance, HMRC is an unsecured creditor, they therefore require all unsecured creditors to be offered the same deal.  Unfortunately for Rangers, the other football clubs they owe money to are also unsecured creditors.

Rangers are in the horns of a dilemma.  Pay Hearts, Rapid Vienna, Arsenal, Celtic and others the circa 5p in every £1 they will offer HMRC, which would be unacceptable to domestic and European football authorities, not to mention the clubs, or pay football debts in full, which would ensure that no amount of lobbying last week from the First Minister would be sufficient to force HMRC into accepting a CVA.

It’s not clear why Mr Whitehouse was so open on the hurdles Mr Kennedy’s plan faced but was less forthcoming when Mr Green presented the same plan to the media yesterday.  Perhaps he forgot.

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  1. Paul,

     

    If you are correct about CVA being a lost cause, then PL and DD must be sitting pretty uncomfortably on the very sharp horns of an uncomfortable dilemma.

  2. Ray Singh-Carr on

    Can I hear the strains of “Charles Green’s Fenian Army” marching towards this ongoing debacle with brimming confidence?

     

     

    Here’shopingCSC

  3. jungle jam67 on

    So when the money runs out at ibrokes on 30 th may who pays the players full wages ?

     

    Duff and duffer or green?

     

    The CVA meeting is not till 6 th June and then there is a 30 day cooling off period.

     

    Putting another month of cash in the duff and duffer account.

     

    These guys sure know how to pick a carcass bare.

     

    Plus the players bill with be at full pay.

     

    They are appointed by the court to act in the best interest of the creditors ?

     

     

    Jam67

  4. blantyretim on 14 May, 2012 at 10:20 said:

     

    VP

     

    I’ve not dried ooot yit…. 0))

     

    ———————————————————

     

    Inside and out,I bet.

     

    You off today?

  5. Auldheid – I always admire your faith in the football authorities to do their job well :0

     

     

    I think your faith is going to be sorely tested on Wednesday when the SFA appeal panel propose a reduced sanction on Rangers ( when the evidence suggests the original punishment wasn’t harsh enough).

     

    ……………………….

     

    Auld Neil Lennon heid on 13 May, 2012 at 23:56 said:

     

    aldersyde avenue on 13 May, 2012 at 23:20 said:

     

     

    Dirtymac

     

     

    UEFA will not get involved. Let me repeat that

     

     

    UEFA WILL NOT GET INVOLVED.

     

     

    There is as much chance of UEFA intervening as Paul’s suggestion in yestedays article happening.

     

    ===================

     

    The only way Newco can get a icense to play in UEFA competitions isfOR UEFA to be involved.

     

     

    UEFA need do nothing, the situation is already covered.

     

     

    The SFA could make a case but I doubt they have any grounds and UEFA would then have to make a decision, but that means they have to act. The only way they will get involved is to say yes or no, but given they are looking at excluding clubs who use CVAs to avoid tax and continue as Oldcos from playing then a yes is very, very unlikely for a Newco.

     

     

    The only question will be when the three years begins. Rangers do not have a license for next season having failed 3 licensing criteria. So will the 3 years click in the season after next or next? I think next but no UEFA money 2012/13, 2013/14, 2014/15 so it will be season 2015/16.

  6. Does anyone know anything about Markus Henriksen?

     

     

    Him, Jay Rodriguez and another defender would be a great summer.

     

     

    Priority #1 is to keep Fraser Forster …

  7. Son of Warsaw on

    When they cease to be, will HMRC and Ticketus be legally entitled to the proceeds of tha assets, Ibrox and Murray Park ? That must be worth much much more than the proposed CVA settlement being offered ?

     

    Don’t understand why the major assets on the balance sheet are not sequestrated.

  8. The Honest Mistake loves being first on

    Paul67,

     

    Is it not the case that before unsecured creditors are paid, the secured and prefered creditors are paid in full?

     

    Therefore HMRC will have a 0p in the pound CVA to agree on after the players (defered wages) and Craig Whyte take their spoils.

     

    Why is a CVA even being suggested?

  9. henryclarkson on

    Morning bhoys from a sun-drenched Turkiye, what a good feeling today even my 2 dogs are bouncing all over the garden -)

     

     

    Great coverage from Tic TV a credit to the Celtic family.

     

     

    “Champions”

  10. South Of Tunis on

    Dobbo @ 10 24.

     

     

    Markus Henricksen .?

     

     

    Norwegian midfielder .

     

     

    Italian rumor mongers have consistently linked him with Napoli.

  11. What I’m really looking forward to this week is the daly updates on the emerging story……………………….

     

     

    HHH.

  12. The Honest Mistake loves being first on 14 May, 2012 at 10:29 said

     

     

    The players wages weren’t deferred.

     

     

    The players agreed to a wage cut in exchange for their transfer fees being reduced.

  13. Quonno, I don’t follow you?

     

     

    Honest Mistake, correct, secured creditor – Whyte – must be satisfied first.

  14. The Bottom Line is ............. on

    Methinks Mr.Green doth talk too much ………………………but says little.

     

     

    All smacks of a desperation deal grabbed by Duff & Duffer while they start the car.

     

     

    And you just know that Our Hero isn’t walking away with just a quid profit !

  15. CVA is a non-starter – Green consortium does have money but the creditors know this and are aware that he is only putting a fraction of the money into CVA pot – in my opinion that is still cheating …………..

     

     

    Markus Henriksen link to some footage below

     

     

    http://www.youtube.com/watch?v=oTyih_fsl9g

  16. Mountblow tim on

    Paul your doing a top job on your reporting

     

    Keep up the good work

     

     

    Great to read some posts this morning about the Bisley and O.H.R ash park

     

    I was born in the pen close top floor on Elgin St

     

    We run a bus from the Park bar Dalmuir with a few of the Bisley lad’s

     

    Lots of the old Eldorado drunk in those days the memories

     

     

    (The good old days)

     

     

    64 to-day

     

     

    Hail Hail

  17. Paul, I read that Rangers(ia) are still owed money from everton for jelavic. Something like £2.5m. Which I assume they will get in full over time.

     

     

    However they still owe RW around £1m for him which they only want to give about 250k under s CVA.

     

     

    Dignity indeed.

     

     

    SffS

  18. Snake Plissken on

    Wouldn’t it be great if Celtic spent BIG this summer (around 10-15M) while shedding out of contract players and selling one or two players to fund a few more coming in.

  19. Jobo, you must have been well in the drink yesterday as I was no where near a pub! Unless someone in said pub was impersonating me I wasn’t there!!

     

     

    Was at game with my 6 year old, his first game. He loved every minute of it!

     

     

    SffS

  20. South Of Tunis on

    Bhoylo83 @ 17 28 13 5 12.

     

     

    Pippo Inzaghi —- ” Probably the worst footballer I have ever seen ”

     

     

    He could certainly score goals —

     

     

    288 league goals .

     

    25 goals for Italy.

     

    70 goals in international club competitions.

     

    First player to score in all international club competitions open to a European club.

     

    3 Champions League hat tricks.

     

    World Cup winner.

     

    Champions League Winner..

     

     

    He wasn’t that bad .

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