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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ernie lynch on 14 May, 2012 at 10:32 said:
The players wages weren’t deferred.
The players agreed to a wage cut in exchange for their transfer fees being reduced.
I’ve heard conflicting stories about this so don’t know what is the truth any more.
Not that it matters though as the 8.5 million proposed CVA won’t make a dent in Craig Whyte’s floating charge. The proposed CVA remains at 0p in the pound for the unsecured credtors, the people that vote the CVA in. Why is it even being proposed?
Snake, could easily be done. There is about 10 players who could be let go and wouldn’t affect the team or squad one little bit.
I’m a massive Ki fan but if there ids a big name player to go I feel if could be him as we are very strong in the midfield area.
SffS
Well it all gets murkier and murkier Craig Whte sells his shares to Charles Green for £2 but whyte still holds Ibrox and Murray park is that correct? Green wants to do a cva but it is very unlikely to be accepted and why he would want anything to do with this stricken club is beyond me ? Ticketus are taking whyte to court,the big tax bill still hovers in the back ground,and more revelations may be revealed in a documentry of there cheating..Ibrokes Rangers football club are toxic why would anyone jump into that mess? H.H.
Worsest footballer I ever seen was ole Sandy Clark, ex Hillbilly and their inbred cousins, from both ends of the ole M8.
Even Nathan Bedford Forrest doesn’t have a C.V like Sandy.
Paul McConville has run a piece that provides some links between Craig Whyte and Charles Green which makes for interesting if not definitive reading.
The following link provides the details of all Charles Green’s Directorships in the UK. Many of the companies are inter-related, so while 39 Directorships seems like a lot, in actual fact the number of core businesses is much less than that.
Mr Green was without a UK position between 2006 and 2010, when he took on a non-exec role at Formation Group plc, a small time dispute-fankled construction management company. He resigned in February after overseeing some fairly painful downsizing and complicated legal disputes.
He has links to the Singaporean business of Chan Fook Meng, who dabbles in myriad small time investments using typically offshore registered companies, along with a host of similar small time entrepreneurs.
The concern for Darksiders would be that Mr Green has pulled together the necessary readies from umpteen small time investors, each putting up a few hundred grand, and each of whom will have to be resold on the bid as the details become more refined. If he pulls it off, most likely via Newco as Paul indicates above, the likelihood is that the people involved will be unknown and unaccountable, just what they don’t need after the last two jokers to own the club.
The unseemly rush to conclude a CVA is likely to be no more substantial than window dressing to demonstrateto the hordes that a CVA is unfeasible, thereby justifying a liquidation and Newco. Expect Newco in June. Over to the SFA and SPL on how that one is treated.
http://company-director-check.co.uk/director/907595268
Confused here. Is Green actually the new owner? I read that he had purchased a period of exclusivity. Has he now done due diligence and put pen to paper on a deal?
Where does this leave the players? I think this is the key to the latest charade. No mass exodus of free players today. Possibility of some transfer fees in. Buys a bit of time.
HMRC imminent. Weds upholding of punishment (I am convinced of this having read the report). Reporting on dual contracts any time now.
Let the FACTS speak for themselves.
This is another con.
Snake Plissken – that would be unbeleivable, but it isn’t often that Celtic spend matches or reaches our expectations – usually it comes around the ‘ok, that might be enough’ sort of mark.
It would be nice to be surprised though!
Plenty players on the way to the exit – M.Wilson, Loovens ?, Maj , O’Dea, McCourt ? , Juarez, Towell, McGinn, Murphy, Rasmussen
Perhaps Ki for cash – I would think we could only get £3 to 4 mill for him.
What do we look for coming in postion wise? GK , LB (cover) , CB X 2 , MF (RLC) Henriksen, FW Jay Rodriguez? – that’ll cost a few bob!
Phil MacGiollaBhain @Pmacgiollabhain
This Mr Green is a very interesting chap. I hope he succeeds in taking over the once mighty Rangers. #finalnail
Paul,
I suspect HMRC have a dilemma on their hands. I have it on good authority that their top man has had three calls from Salmond and two from Cameron, both urging him to go easy. Everything must be done to avoid civil unrest in Glasgow, was the message. Now you may say that this is a sensible aim for people charged with the good order of our society. Or you may be more accurate in arriving at the conclusion that violence and threats bring their own disgraceful rewards.
It does make me wonder if the delay in the publication of the FTT is deliberate. Perhaps HMRC would rather TFOD slipped into liquidation prior to the big tax case forcing it to do so, thereby allowing them to avoid blame.
Of course, from the politicians view, the effect is the same; the risk of disorder.
Maybe I’m missing something but if a CVA is unacceptable and I can see why that is, surely if hun are liquidated then the creditors will get nothing!!???
Surely 10 pence in the pound is better than nout, no?
And is a CVA negotiable, ie, if initially say 10 pence in the pound is offered, can the creditors not say we’ll do a deal at 50 pence???
What am I missing please, apart from a brain that is????
KINGLuBO
A wee youtube showreel of Jay Rodriguez goals – some absolute belters
http://www.youtube.com/watch?v=YpOtBX8pViM
BUT – he also did this (worth a wee chuckle)
http://www.youtube.com/watch?v=h3KsEHgMhGE
Is Green in the Brigade ?
You a rangers player – you have been paid 25% of your earnings for the last few months, you have 25% this month, June is approaching and nothing has changed, you are supposed to be able to walk away or get back to a full salary – they can’t afford full salary, would anyone in their right mind stay on with the risk that any salary from June onwards might not come at all?
Or, as I understand it, D & P cannot incur debts whilst in administration, does that mean that they will all be bumped at the end of May?
Paul – you state that our very own first minister continues to lobby to HMRC on their behalf? Do you have this on good authority and is there evidence of this – its a national scandal if he is doing so?
Also do you know if Celtic are doing any lobbying?
I honestly think there is some missing information something we have not been told.Green sounded on his tv interview pretty upbeat about the whole situation now I am aware he cant do anything other than talk up his bid.H.H.
What does anybody think of the following players going in the summer?
GK-Cervi…why is he there? Surely a youth tem GK can cover the thrid choice spot.
Def-Loovens, Majstorovic, O’Dea, M Wilson, Cha Du-Ri, Toshney, Thompson. All out of contract? Personally I think O’Dea is as good a bet as Wilson, K, but not by much. We’ll probably keep Blackman, although I am not sure why. £££s saved on the wage bill from natural wastage anyway.
Mid-McCourt, Juarez, McGinn, Towell. Should get a Championship bidder for Paddy no bother. Whether we can get Juarez away probably depends on us getting a deal to pay some of his wages for the remainder of his contract. A shame as I think there’s still a player there. Neither young lad looks likely to make it unfortunately.
Fw-Bangura, Rasmussen. To me each represents the negative side of our “take a punt” strategy on players at £2-3million. If Ki, Kayal, Wanyama, Izzy and Hoops are the good side, these guys are the other side of the coin. Hopefully both leave, we get their not insubstantial salaries off the wage bill and re-invest more sensibly (fortunately?)
Star Player-One of Izzy, Ki, Kayal, Hooper, Matthews, Wanyama, Forrest is likely to go. I think looking at the balance sheet that makes sense as well. If I had a choice, I’d sell Ki, as I think we’re well covered. Hopefully Ibrahim can step into the advanced playmaker role, although he is far less athletic than Ki.
Players in? Depends who leaves!
So Whyte has effectively removed the saleable assets Ibrox and Murray park meanwhile Green takes what’s left and liquidates! Newco start debt free with Murray park and Ibrox intact!
Shameful!
The Honest Mistake loves being first on 14 May, 2012 at 10:48 said:
Maybe Whyte will retain the benefit of his floating charge and the £8.5m is for the unsecured creditors?
Even so that won’t get through a CVA. It would be like offering an oat to a donkey.
I reckon it’s liquidation, Whyte taking the stadium and the training ground and leasing them to a newco, paying off Ticketus over time and giving himself a regular income with newco raising funds through a share issue.
Modren small time dispute-fankled construction management company is rubbish.
I saw Chan Fook Meng and his Myriad SmallTime Investments a few years ago, at the oooooooooooooooooooooooooooooollllllllllllllllllllllle Burns Howff.
What a complete waste of time and money that was.
Neganon2,
See my earlier post, I have it on very good authority.
As I see it, the amount of money that HMRC will be able to recover from the Dark Side is going to be nowhere close to that which is owed. I suspect that HMRC understand this, so they will be fighting their corner more in hope of establishing a principle rather than achieving the maximum buck. If they are likely to receive anything like as much from a liquidation/fire-sale of assets like Ibrokes and Auchenhowie then I would not be surprised if that is what they push for.
If they were foolish enough to come to some sort of agreement with Rankers then that would weaken their bargaining position when they subsequently chase some of the bigger fish in the EPL who are also on thin ice regarding potential tax liabilities.
Far better to make an example of the knuckledraggers, even if it is not too financially lucrative, in order to bring the rest of them back in line.
All just my opinion of course.
Kinglubo – that is the line that does my box in. It is the media / Follow Follow sop peddled constantly.
Who said in Liquidation the creditors get nothing?
The creditors should do very well in an asset sale. In fact it should be more than the £8.5m minus £3m admin fee’s.
Anyone who says the creditors get nothing, including Mr Green, is pushing an agenda.
When I heard him utter that line I knew their goose was cooked as the spin was continuing.
KINGLUBO –
Where do you get the idea that liquidation means the creditors get nothing? Liquidation means all available assets are sold and used to pay the creditors on a pro rata basis.
Posted this when White took over from Murray :
Won’t Get Fooled Again by The Who…Meet the new boss Same as the old boss.
Seems just as relevent now.
My take
A number of rankers players have contract from duf duffer saying that if craigy bhoy is owner they can leave for nuffin!!!
So imagine my surprise on last day of season they have announced new owner — players free release is null and void!!
Maybe im just being a cynic
Would the removal of assets such as Murray park and Ibrox in order to protect them from creditors be possible/ legal?
RogueLeader on 14 May, 2012 at 11:12 said:
The unsecured creditors only start to get paid once the secured creditors (Craig Whyte and possibly the debnture holders) are paid in full.
On the figures being discussed they’ll get nothing.
But there’s a couple of public policy considerations for HMRC in all of this.
Firstly it won’t help HMRC recover unpaid tax from other delinquent football clubs if they don’t play hard ball.
Secondly they cannot be seen to be condoning such a carefully devised and well executed strategy to cheat the public purse.
Rubicon
If this is true then Cameron and Salmond obviously don’t see the bigger picture.
If they think that during a recession you can make PAYE and VAT payments negotiable then they are in for a world of hurt. It would be an incredible precedent to set.
That allied with the notion of stiffing creditors using incubator companies means they could be heading for a perfect storm and all under the watchful gaze of Channel 4 news.
P67.
Can you confirm if all that has happened over the weekend is that Green and the gang have been mad preferred bidders and will now pay the £500k fee to carry out due dillgence, or is it more than this?
They seem to be referring to him as the new owner as if it is a done deal (they did not refer to BM as the new owner when he was named preferential bidder)
Strike mad should read made ( I think :) )
Apologies if already covered but why the hastiness of a rushed press conference on a Sunday at a training ground 2 hours before kick off on the last day of the season ?
Th use of the word “Irrevocable” is in some way significant, I fear.
Tom McLaughlin on 14 May, 2012 at 11:13 said
The proceeds aren’t distributed on a pro rata basis.
There’s a hierarchy of preference. Each creditor within each class is treated on a pro rata basis.
Top of the tree are secured creditors. They get paid first. Only once there debt is paid in full does any residue trickle down to the next class of creditors.
Whyte is a secured creditor on liquidation as his floating charge will cover all the assets.
Tom McLaughlin
That’s how I understand it.
Ibrox probably worth £20m. The lease on Murray Park must be worth something?
If I was a creditor I’d want those thing liquidised before accepting a share of £8.3m
Rubicon on 14 May, 2012 at 11:11 said:
‘Neganon2,
See my earlier post, I have it on very good authority’
I’m sceptical, but on the off chance that it’s true, can it be stood up?
Would your authority speak to Alex Thomson?
If they name the Green Knights as new owners after the same level of scrutiny as Our Hero then that’s good.
And on the other hand if the Green Knights go on to due diligence then they’ll open the suppurating abscess that is the Hillbillies accounts and then like ole Bill Miller they’ll walk away, which is also good.
shimmies. Has imo made a very good point Craig Whyte is no longer the owner Charles Green is the new owner so the contract that allowed any of the players to walk away if Craig Whyte was the owner is now null and void.Makes sense to me.H.H.
Deja vu
I sense something unwinding… Why are these stupid Juns torturing themselves instead of accepting the inevitable .. And moving on to their NEW club?
Estorilbhoy
Been asking myself the same question. Yesterday’s article on BBC website had a headline implying SOLD yet the body of the article described preferred bidder status.
Think i’ll need to head over to RTC blog and trawl through for some answers.
S
Tom McLaughlin, Rogue Leader
I might be wrong but would it not be that in the event of Liquidation the 1st £30m raised from the asset sale would go to Whyte as secured creditor/floating charge holder? They’re unlikely to reach that figure anyway so Whyte could be the only creditor who gets anyhting from them.
That’s the way I understand it however I might be wrong – a frequent occurrence!
On the celebrations yesterday, did anyone else think they could have been better – get the Celtic Song on while we wait for the team, introduce each player giving us a chance to “thank” each of them indiviually – kinda like what Man City did.
The re-run of the lineups (with the “First Name…..*cups ear* thing) is lame in my book (and not one player took the chance to do a Hulk Hogan-esque gesture!) and removed a bit of the atmosphere which was great despite the ridiculous weather.
Anyhoo – delighted for the players but most of all Lenny. Onwards and upwards Celtic!
Back to lurking for me!
HH
Tombola