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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261 Comments- Pages:
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ernie – you are right. Are HMRC really going to set a precedent like this for what? £3m – £4m? When there are 4000 EBT cases, not to mention the general feeling in such a high profile scenario.
CVA is pie in the sky and they know it.
All this stuff from D&P about “talking to HMRC daily” is also guff as Alex T has burst directly from HMRC on 2 occasions. HMRC have had no discussion whatsoever, nor will they until the creditors meeting. They will then give their answer on day 28 of the 28 day cooling off, as they always do.
Records held at Companies House suggest Mr Green has held at least 39 different director or secretary appointments over the years. Thirteen of the firms he has been involved with have since been dissolved.
We’ve had the Whyte Knight, Blue Knight(s) and now the Green Knight!
Afternoon bhoys, hot and hun free, on the mountain range.
Rubicon
Interesting, I would go along with that scenario, they have made their first goal, end of the season.
It’s a shocking state of affairs that the authorities can’t control a few football supporters.
A new game.
Bluedo
It was Mr Green, with the Axe, in the Dressing Room / Board Room / Trophy Room
Craig whyte owns the stadium and training park, under a different company and is untouchable.
Craig whyte did have shares in rangers the company who are in administration
he has agreed to sell them to mr green.
mr green will try a cva, but knowing that it will not happen, he will then liquidate, the only assets are the footballers and they are about to walk.
mr green then will start a newco, go to division 3 voluntarily following the scandal of unpaid moneys to football clubs, hmrc etc, and lease the stadium from mr whyte with the deal including a percentage to ticketus.
mr green will then claim the debts are nothing to do with him, all he is doing is trying to keep the rangers in some shape or form for the sake of the fans – no one else wanted to take it on etc etc.
SFA will side with mr green as ‘ he wasn’t involved in the toxic mess’ and allow them to carry on. SFA and all the rest will drop any further investigations and sanctions as it would be pointless to punish a liquidated club. It will take them 3 years, but they will be back. They will be a debt free club, fans will be sold the idea that they are a new club, new beginnings and all that. and mr green will be hailed as a hero who saved them!
Or have I misunderstood something?
Paul 67
I dont see the point in Rangers FC (IA) agreeing this CVA prior to the EBT case being finalised.
All that will happen then is that the “Big Tax” owed will crystalise and Rangers (no longer IA) will be back in Administration.
Very strange.
Ole Dan Masterchef didn’t get to cup his ear at the end.
theotherhalf on 14 May, 2012 at 11:40 said:
”Craig whyte owns the stadium and training park, under a different company and is untouchable.”
He doesn’t own them, he has a security over them.
Paul67
This bid seems to be very vague in detail compared to others that were touted.
You any idea how the catering deal is figured into this?
Rangers owner Craig Whyte used future income from the club’s match-day catering to pay for new kitchen equipment at Ibrox.
The club received new cookers and other catering equipment in a deal with finance house Close Leasing in October 2011.
This equipment from the Surrey company made up part of the £1.7m investment to upgrade the kitchens and big screens at Ibrox, promised by Mr Whyte in his purchase agreement when he took over the club last May.
According to documents lodged with Companies House, the agreement with Close Leasing sees it receive a proportion of the income Rangers make from their contract with catering firm Azure. It is understood this revenue stream is being used to pay back the debt for the kitchen equipment.
The amount Rangers owe Close and the length of the deal is not publicly available. Close Leasing refused to comment, stating that it was a “confidential client matter”.
Last year, Azure renewed its contract with Rangers for nine years, and also took over cleaning duties at Ibrox, in a deal worth £35m.
Shortbread outdoes itself………
Did we lift the Cup at the weekend? Difficult to tell from their ‘reporting’
Nice wee bit on Ally’s tough year mind…………….
Aye.
Could be one helluva birthday for me when CVA day (june 6th) comes and goes……..June 7th Liquidation day, will try and not overdo the Jelly and ice cream.
Tombhoy2 posted last night that he thought the atmosphere in the stadium was flat. If you factor in the weather conditions, i thought the atmosphere was great. My wee fella ( dressed as the grim reaper!! ) saw his first title party and despite being bloody freezing, had a great time.
Well done to Neil and the bhoys and the GB, what a great season with a young manager and team……more to follow.
SSB on the way home from the game: Wishart : “first thing green needs to do is secure naismith, davis and mcgregor!!!!! wtf
compare and contrast
sportscence last night: Patterson hellbent on Celtic selling Gary.
Also, while i’m at it. watched the full game again, when i got home and thawed out…Sky’s coverage was shocking.
There might even more than one, of the ole 10.00am Celtic Trophy receiving day, press conferences announcing ‘Gers Saved’ before Ragers finally liquidate. For anyone thinking they might have escaped the hangman, it’ll take a good bit longer for this particular piece of ‘Scottish societies fabric’ to expire.
The newspapers love a ‘Gers Saved’ story and are busy trying to obsfucate the status of Ragers, by calling Charles Green the new owner, already contributing to the mess they got into in the first place, by lying to the hoards, that everything in the Big House is secure.
Same old Ragers, same old lies and deception, can’t shift the debt, they have no pot to pee in, the latest preferred bidder is merely another flim flammer, with an embarrassing business past of deliquesce.
A mere detail, they’ll happily overlook just like they did with Craig Whyte.
Nessun Dorma CSC
ernie lynch
So does that mean when they get liquidated, he gets them?
So McLeish gets the axe from Villa. Should never have left the brummies.
Can I change the subject? “Build a Bonfire”, like all Old Trafford songs, is really crap. I hope yesterday was a one off. We have so many much better songs.
McLeish saying his goodbye ay Villa.
I don’t worry too much about fishy goings on in the lobby. We know that part of the ‘hoose’ stinks anyway from all the corrupt feet that have tread it over many years. Besides, it is my understanding that it could just add to the bucket of penalties that EUEFA and FIFA are filling up, depending on the ‘right’/’ wrong’ outcomes, ready to tip on ‘ra lot a’ them’ (to quote the sophisticated comment of an escapee from “the big (nutters) hoose” on the George Galloway radio show. To be fair, he was still attached to the the ECT machine). Only worry is they could hit all of Scottish football including us but, as per usual, R.F.Cia (dead in the salmon leap) and all connected to them could not give a ‘Wee Wullie Winky’.
H H
Paul67 …….”Perhaps he forgot” …… Absolutely brilliant….!!!!
Think mr green should have a wee chat with Mr Miller……LOL
The due diligence period will be concentrating on getting Agent Whyte by the throat ……”gee us the big hoose, ya wee shoite”
BSR
The ever reliable SUN outdid itself today ,front page headline.
I’LL MAKE GERS A BILLION, a billion whit?
Only thing I have to say re the possibility of them being NEWCOed and therefore debt-free is this.
They won’t be debt-free for long!
Income-streams all but dried up,so no money to spend on the team.
Which will result in smaller crowds-the huns really DO do walking away-and therefore further-reduced income streams.
They’re f…d any way you like to look at it.
Celt55 “We have so many much better songs.” According to an intruder on one of our sites we stole them all from across the Clyde. How does The Soldiers’ Song go in Govan – “Soldiers were we………?
H H
Mountblow tim
Will you still need me – will you still feed me………
Happy birthday mate
Teuchter
So Big Eck shown the door at Villa, but the big question is , what radio station will snap bim up first, Clyde or Shortbread?
Paul, can we not start to call thems Newclub rather than newco?
Sounds a lot better.
No to Newclub
HH
many thanks to the bhoy/ghirl who handed my phone into Celtic park…
cheers to Dick Byrne for allowing me to try and locate it using his phone.
I’m sure the bill is already in the post… o))
Perhaps he forgot lol nice one Paul
Arty on 14 May, 2012 at 11:49 said:
What really makes me laugh is that the SFA think all this will have a poor effect on Scottish Football……. Why don’t they appreciate that it’s all the work of their favoured team, and why don’t they just remove them from Scottish Football, and let the rest of us get on with it …… And, therefore, allow Scottish Football to retain at least some measure of integrity / reputation ……. They are in danger of dragging us all down, because of the incredible strategy /arrogance of one club…… One atrocious club
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
Totally agree with you, we were saying in pub yesterday that they are a dead duck for years to come. All income they may have is owed for years to other people even under a Newco. The 20 investors will want a return every year as well.
Ernie,
Sorry for the delay in answering, work!
No, my source will not go public and so wouldn’t wish to talk to Alex or anyone else. I’m confident that his story is true.
A SON OF DAN 1159
20 investors?
I thought they said 20 Swan Vestas,which I reckoned was just about affordable.
Jee-zoh,they’re even MORE f….d than I thought!
Celt for Life – I wonder how many EBTs were used during the Mcleish era? I wonder if anyone will bother asking him.
How long before we get the McLeish for Scotland calls?
Had a really disturbing encounter with an orc in my local last night when I returned from the game. He’s a relation (through marriage) of a good friend, so I had to say hello..
He was just back from Perth. Totally bladdered and spouting off about payback on Scottish society.
This was the mantra from the amoeba.
‘We’ll (Huns) kill Scottish Football’
‘You’se are making us more sectarian’
‘There’s gonna be bloodshed’
‘You’se ar aw sticking the knife in and we’ll be hitting back’
‘Watch for trouble at the Scottish Cup Final next week. We’re gonna wreck it’
‘We’ll go to the 3rd division and take our 50,000 fans with us every week’
A real eye opener from a guy I knew was a Hun, but was not decided how bitter he was. I am now.
Oh, and the best bit ? Him and his two mates went up to Perth, tickets and all, and sat in a pub rather than went into the game. As a protest…..
Nae wonder they’re dying.
cavansam \o/ on 14 May, 2012 at 11:20 said:
….they could be heading for a perfect storm and all under the watchful gaze of Channel 4 news.
cavansam:
Channel 4 News is watched by the discerning viewer who wants intelligent, questioning, scrutiny of the worlds news stories.
Unfortunately politicians also get elected by people who are/were happy to be guided by simplistic perspective on topics they understand ,
Remember ” It Was the Sun Wot Won It!” ?
More power to Channel 4 News and Thommo
I hope they keep lifting the stones and keep shining the light.
The Onlooker
Are rangers season tickets on sale yet? Fans are going to have a dilemma of their own soon, to renew and support your club but also risk losing your investment in liquidation.
Or hold back until the club is more secure, but deny rangers vital cash which would help them survive the summer months.
Oh the divine poetry of it all.
The spl sent out letter to all clubs on the 10 th march 2012.
We are now on week 10 and still no more info from the spl.
The final day of the FTT case was on the 18 jan 2012.
We are now on week 17 and still no verdict.
The spl have not even indicated how many clubs admitted to second payments.
How many club are they investigating ?
The FTT case result was meant to be after 8 to 12 weeks as it was an appeal.
The result must be known by hmrc and the wait is for the final document to be produced.
But not one of the msm are asking neil Doncaster .
How many clubs have made second payments ?
All they seem to be saying is ra gers are saved and the CVA route is the first option.
When everyone knows this route is going to fail.
And Craig whyte has made £1 and hived the assets off to another company
The wheels of justice turn slowly and even now I think the Huns are going to escape any for of serious punishment .
Jam67
The Onlooker
I appreciate that and you are right, but at least someone from outside Scotland is trying to shine a light on the cesspit.
That can only be a good thing.
blantyretim on 14 May, 2012 at 11:57 said:
many thanks to the bhoy/ghirl who handed my phone into Celtic park…
blantyretim,
Always write your home number inside the battery cover.
If a good soul finds your phone but it is protected by a PIN they are prevented from getting it back to you
Last year I found a phone beside my seat at Celtic Park (after a Euro game ), stadium was empty so took it home to see if I could contact the owner.
However as the battery had fallen out I had to decode the PIn Number .
“Hmmmmmm found it at Celtic Park , Iwonder what the 4 digit code could be ?”
1888 ? Nope
1967 ? Bingo we’re in
Called ” Mum” next morning and it turned out to be a young lad who sits in row behind me. Gave it to him on the Saturday.
The Onlooker
Bletchleypark CSC
the onlooker..
I was sitting in kerrydale suite and got a ring back for my taxi.. got into taxi and realised I had lost my phone…
numpty….. o))