Gratuitous Alienation, prove you paid adequate consideration, Paul McConville, Here we go again

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News that Rangers’ liquidators BDO have raised an action against the club’s administrators, Duff & Phelps, transported me back to an item we discussed in 2012.
By 31 October 2012 Newco was enjoying life under Charles Green, then heralded like some latter day Osmond brother, but all of us on CQN were more sceptical at the time.  This is from the blog that day, titled Gratuitous Alienation rears its head again:

 

“I see Charles Green dismissed out of hand the suggestion that his new company’s property assets were worth in the region of £8.5m, as suggested in a recent blog [he may be referring to Celtic Quick News, but we made no comment on what the assets were actually worth], although he refrained from disputing heads of terms exist for the sale and leaseback of Ibrox, Murray Park and the Albion Car Park [which CQN reported].
Green told Talk Sport, “The blog I’ve seen said that we’re going to enter into a sale and leaseback for £8.5m, you can shove the offer where the sun don’t shine. We’ve got a valuation in the share prospectus in excess of £80m.”
Mr Green is clearly an experienced negotiator.

I am grateful to Paul McConville, who yesterday employed our favourite legal term, Gratuitous Alienation.  It was June this year when Celtic Quick News suggested:

“Gratuitous Alienation [will]enter the lexicon soon.  Gratuitous Alienation is the Scots legal term describing when property (or cash) is transferred to another party without any, or adequate, consideration.”
Paul reminds us that “Mr Green bought all the assets, including the right to over £3 million in cash due to the former Rangers, at a cost of £5.5 million. Now he says that the fixed assets are worth in excess of £80 million, and that a sale and leaseback at a price of £8.5 million is nonsense.

“If BDO challenges the transaction as a gratuitous alienation, then it is for the purchaser to establish that “adequate consideration” was paid for the assets. That is NOT the same as saying it was the best offer anyone made.
“If BDO do raise a court action, I struggle to see how Mr Green can state that he has paid “adequate consideration” for the assets. Maybe someone could ask him”.
I am absolutely sure Mr Green will be able to demonstrate that he paid adequate consideration for the assets.  He is a resourceful and experienced businessman.  If anyone is going to find newly established oil under the Ibrox pitch, he will.
I am also sure that BDO are far too busy to worry about such questions and that the interests of creditors are best served by forgetting about this whole business.  Haven’t these poor creditors been through enough?”

 

It’s worth reminding everyone that Charles Green acquired the assets in question (Ibrox, Albion, Murray Park, trademarks and other IP) on behalf of Newco Rangers (called Sevco Scotland Ltd at the time of acquisition).  The BDO case against Duff & Phelps is the next front in this story.  If successful, it will not be the last.

How we miss Paul McConville’s analysis.  After all this time I didn’t think this was going to happen.  It’s been years since I’ve touched this stuff, I’d moved on.

‘Here we go again……….’

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738 Comments

  1. The Green Man says SACK THE Board on

    In the old days, ra berz would have fired Warbs out of a cannon, without the safety net:)

     

    Mon the Morton.

     

     

     

    HH

  2. MODERATORS

     

     

    Can we get a separate page that shows all the “Deleted Posts” please.

     

     

    They can be much more fun than the actual Blog.

  3. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    MOONBEAMSWD

     

     

    They’re used to it,mate. They’ve been groping about in the dark for over three centuries.

     

     

    None so blind as those who cannot see.

  4. The Green Man says SACK THE Board on

    Starry Plough

     

     

    Wouldnt mind seeing ra berz wheel out the old mobile guillotine on loan from Paris.

     

    Imagine them dragging him to his fate, and Warbs shouting ‘We won 15-1 on corners’:)

     

     

    HH

  5. VFR @11:00

     

     

    Good post. Interesting to see the diff in Aberdeen being the two games we have played taking the points against them taking them last season.

     

     

    I have always considered the team that comes up to always have a decent first hit at the SPFL then they tend to bounce back down a wee bit after that. I expect the same with Sevco.

     

     

    MWD

  6. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    PHILBHOY

     

     

    Saw your reply yesterday when I got back up.

     

     

    I’ll send you a photo of the bottle when I track it down. No idea how I escaped the cull,must have been polite in my tone for once.

     

     

    I hope O melted her prelims. Best to her,her Mum,and yer guid self.

     

     

    Offski now. I’ll read the fitba stuff when I get back.

  7. VFR800 is now a Monster 821 on

    BMCUWP, can’t believe you’d want to scroll by some people on here. Disnae bear thinking about!

     

     

     

    KTF

  8. The Green Man,

     

    I have absolutely no doubt that Big Peat is indeed the newest creation of the guy responsible for the litany of trolls you mentioned.

     

    Sad thing is that this time he has taken out a very genuine Tim in Kit.

     

    Didn’t always agree with Kit’s style but no doubt in the world he was a genuine Tim & a real decent ghuy.

     

    Knowing the Kit’s of this world he won’t apologise or back down, neither will Awe Naw or The Bhoy Jinky, so 3 great Tims are red carded & lost to the site but Trolls are allowed to operate freely as long as they don’t physically threaten anyone or use a sweary.

     

    Paul & his 2 Moderators need to wise up & see who the real trouble makers are & rewrite the rules.

  9. The Green Man says SACK THE Board on

    Corkcelt

     

     

    Well said, i totally agree.

     

    I see the signs:)

     

    And you know what they say ‘You cant kid a kidder’:)

     

     

     

    HH

  10. VFR800 is now a Monster 821 on

    MOONBEAMSWD on 9TH FEBRUARY 2017 12:13 PM

     

     

    I was interested to see if the rest were actually any worse or were we just so much better; so after looking I found the answers to be no and yes!

     

     

     

    KTF

  11. The Green Man says SACK THE Board on

    Starry Plough

     

     

    If they get beat by Morton.

     

    Remember the closing scene in the ‘Wicker Man’:)

     

     

     

    HH

  12. The Green Man says SACK THE Board on

    Starry Plough

     

     

    ‘Let them eat Spacecake….soaked in Buckfast:)

     

     

    HH

  13. THE GREEN MAN SAYS SACK THE BOARD

     

     

    I think Morton can get a result, the orcs will be under pressure and every mistake will be pounce upon…. interesting times…

     

     

    Jimmy Calderwood with Kenny Miller in the Battle The Perma Tans:))

     

     

    One thing for sure Celtic will be approaching this weekends tie with full focus regardless of Inverness’s league position, it’s Brendan’s way and I’m sure our Bhoys will get the result we are looking forward to.

     

     

    The Wicker Man is I’m sure on the banned lists of things to scary for Swiss People to Know:))))

     

     

    Children Of The Corn CSC

  14. thomthethim for Oscar OK on

    Those who respond to someone they think is trolling are part of the problem.

     

     

    There are many good posts on here which pass without comment, yet when someone posts with the intention of being controversial, there is an immediate posse all to ready to feed him.

  15. James Traynor pre Level 5

     

     

    November 19, 1998

     

     

    SECRET FEAR THAT DRIVES ME TO WIN;

     

     

    10 IN A ROW: Rangers chairman David Murray opens up on the

     

    highs and lows of his decade in charge of Rangers and

     

    promises that the best is still to come

     

    Exclusive James Traynor

     

     

     

    RANGERS owner David Murray doesn’t often allow his true

     

    feelings to surface, but currently he is finding it difficult to

     

    disguise a pain which has been gnawing away inside since the

     

    end of last season.

     

     

    After a period of almost total dominance of Scottish football

     

    during which Rangers racked up 17 trophies the club met with

     

    failure.

     

     

    Celtic won the championship and the League Cup and Hearts

     

    beat Rangers in the Tennents Scottish Cup final, leaving Murray

     

    with nothing to show for a massive investment in time and

     

    money.

     

     

    Even now he winces when he thinks of that season, but it is the

     

    vivid memory, and the pain of defeat with which he now suffers,

     

    that combine to drive him on.

     

     

    Last night as he looked back on a decade as Rangers’ owner –

     

    come this Sunday, the 22nd, it will be 10 years since he paid

     

    Lawrence Marlborough pounds 6million for the club – Murray’s

     

    desire to avoid the miseries of another barren season could not

     

    be disputed.

     

     

    To hear him speak was to listen to a man who believes himself

     

    to be charged with some kind of great and mighty mission.

     

     

    Murray, who chose to talk only to the Record about his dreams

     

    and ambitions for Rangers, said: “No one should doubt that

     

    Rangers are the biggest club in the country, but I know that talk is

     

    cheap in this business and that we will have to prove just how

     

    big we are.

     

    “That doesn’t really bother me because as long as I am able to

     

    influence this club we will be the biggest and we will be the best.

     

    “I have spent 10 years of my life, and I know that sometimes I

     

    gave up too much of myself to Rangers, but I am not about to

     

    give up now.

     

    “Neither am I willing to stand aside and allow another club to

     

    overtake Rangers. The failure of last season hurt me a lot and

     

    that pain was something I didn’t need nor want.

     

    “It is also a pain which I never want to suffer again, but by God

     

    that sort of thing just makes me even more determined to

     

    succeed. I am still as driven, still as enthusiastic and I will

     

    welcome the challenge of anyone out there.”

     

     

    Murray was referring not only to the Kenny Dalglish/Jim Kerr

     

    consortium who are stalking Celtic, but also the as yet

     

    uncovered groups who are bound to make bids to buy out

     

    Fergus McCann.

     

     

    If the past 10 years have taught Murray, who is one of Britain’s

     

    wealthiest individuals, anything it is how to win and he believes

     

    Rangers will continue to grow and prosper.

     

     

    “I look upon these last 10 years as a having been a great era, but

     

    it is over and Rangers are about to head on into a new era,” he

     

    said over a glass of the finest red.

     

     

    He was about to take in another mouthful of the most succulent

     

    lamb – anyone who knows Murray shouldn’t be surprised to learn

     

    he is a full-blooded, unashamed red meat eater – when he put

     

    down his knife and fork.

     

    It was like a statement of intent and looking directly across the

     

    table to make sure I hadn’t yet succumbed to the wine, he said:

     

    “Bring on the next 10 years, there’s more to come for Rangers.

     

    “Understand that I care passionately about what I’m doing with

     

    Rangers and believe that in 10 years time we will still be setting

     

    the pace.

     

    “Too many of us have put too much into this club and we won’t let

     

    someone come along and take it all away.

     

    “What I’m saying here is that no matter who buys Celtic from

     

    Fergus, they will need to have the deepest of pockets

     

    imaginable.

     

    “The fresh challenge would be good for the Scottish game and

     

    lift the profile, but Celtic’s new owners had better be prepared to

     

    spend.

     

    “In the past, Celtic’s people maybe just haven’t fancied trying to

     

    take Rangers on financially, but if I have to go in deeper to keep

     

    my club up there then I will. I have done it too many times to be

     

    frightened now.”

     

     

    From anyone else such talk could be dismissed as no more

     

    than empty rhetoric, but with Murray you just feel it is more than

     

    bluster and besides, he does have a track record as a spender.

     

    There have been times in his 10 years when he has taken

     

    Rangers somewhere between pounds 15m and pounds 20m

     

    into debt and he knows that if this season goes belly up like the

     

    last one he could be looking at a potential debt of pounds 20m.

     

     

    However, having taken the value of Rangers from pounds 6m to

     

    approximately pounds 186m in 10 years he knows how far he

     

    can gamble in pursuit of success.

     

     

    This season alone he has allowed his new manager Dick

     

    Advocaat to spend almost pounds 30m, but he refuses to lose

     

    any sleep over it.

     

    He said: “I don’t because I consider spending as much as

     

    pounds 5million on someone like Andrei Kanchelskis as a

     

    necessity. If a club like ours doesn’t do that then we fall by the

     

    wayside.

     

    “Look, I have many other businesses so I could find many other

     

    things to worry about, but I love sport and I want Rangers to be

     

    successful. I know this won’t be accepted by some people but

     

    this isn’t about making money.

     

    “pounds 56m has been invested in the stadium and in my time

     

    pounds 200m has been turned over and after interest our trading

     

    profit is minimal. Perhaps as much as pounds 60m has been

     

    spent on players and I have even paid in about pounds 1m in

     

    hospitality but never taken a salary from the place.

     

    “I get six complimentary tickets the same as everyone else and if

     

    I want extra I have to pay for them the same as everyone else.

     

    “There are no free lunches for David Murray at Ibrox and I have

     

    never taken part or been at the centre of any of the numerous

     

    victory celebrations we have had.”

     

     

    Murray disappears to celebrate success with a small group of

     

    close friends, leaving the roar of the crowd to wash over the

     

    players and management.

     

    “Supporters don’t want chairmen hanging around, even though

     

    they look to people like me to provide some kind of direction and

     

    the new ways to keep moving the club on,” he said.

     

    “I hope I can say that in my 10 years so far I’ve been fairly good at

     

    that, but the day I run out of ideas is the day I’ll know it’s over. I’m

     

    sure someone will tell me because I have good people around

     

    me, I always have.

     

    “But I’m not ready yet to step back and I see enough fresh

     

    challenges, staying ahead at home and winning a place at the

     

    European table, ahead in the next 10 years to keep my own

     

    adrenaline flowing.”

     

     

    He knows roughly how much it will cost him and he’s heard the

     

    rumours that ENIC, who have invested pounds 40m in Rangers,

     

    are uneasy at the club’s spending policies but Murray claims

     

    these backers have always been supportive of his methods.

     

    He said: “They could kick up a fuss but they don’t. Besides, I am

     

    the owner of the club and so far most people seem to like what

     

    I’ve done.”

  16. The Green Man says SACK THE Board on

    THOMTHETIM

     

     

    What can you say.

     

    Most of the bhoys are having a laugh, gentle ribbing, nothing more.

     

    There will always be trolls, thats a given.

     

    They get plenty back, thats for sure.

     

     

    HH

  17. thomthethim for Oscar OK on 9th February 2017 12:27 pm

     

     

    Those who respond to someone they think is trolling are part of the problem.

     

     

    There are many good posts on here which pass without comment, yet when someone posts with the intention of being controversial, there is an immediate posse all to ready to feed him.

     

     

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

     

     

    This is true, especial… Ah, damn…

     

     

    ;))

  18. THOMTHETHIM FOR OSCAR OK on 9TH FEBRUARY 2017 12:27 PM

     

    Those who respond to someone they think is trolling are part of the problem.

     

    ————————-

     

     

    Exactly. Spot on.

  19. por cierto on 9th February 2017 12:30 pm

     

     

    James Traynor pre Level 5

     

     

    ‘To hear him speak was to listen to a man who believes himself

     

    to be charged with some kind of great and mighty mission.

     

     

    He was about to take in another mouthful of the most succulent

     

    lamb – anyone who knows Murray shouldn’t be surprised to learn

     

    he is a full-blooded, unashamed red meat eater – when he put

     

    down his knife and fork.

     

    It was like a statement of intent and looking directly across the

     

    table to make sure I hadn’t yet succumbed to the wine, he said:

     

     

    “Bring on the next 10 years, there’s more to come for Rangers.

     

    “Understand that I care passionately about what I’m doing with

     

    Rangers and believe that in 10 years time we will still be setting

     

    the pace. ‘

     

     

    ————————————————————————–

     

     

    This must be republished on Valentine’s Day.

     

     

    Title: ‘The Love That Dare Not Speak Its Name’.

     

     

    One thin you can say about Jabba’s writing – it drips with homoerotic tension…

  20. The Green Man says SACK THE Board on

    THOMTHETIM

     

     

    Its not me thats complaining.

     

    I could not give an expletive to be honest.

     

    Wouldnt it be a boring blog if we all agreed on every topic.

     

    You seem to be having a wee dig at me, why would that be then?

  21. The Green Man,

     

     

    They may, as you say, “get plenty back”, but that is their whole purpose: feed in some imflammable stuff , fan those flames and giggle and chuckle as various posters attempt the impossible, ie to get them to admit to being wrong or out of order. THAT would never, ever happen. The only way to deal with trolling is to ignore it, hard at times of course, but engaging with them is exactly what they want.

     

     

    We are going through some great times as Celtic fans – ask yourself this, then, why would genuine Celtic ghuys come on to the blog and sow discord just now? The answer is surely obvious.