Former Rangers chairman, Alastair Johnston, made it clear on BBC Radio Scotland last night that putting the company into administration was never Sir David Murray’s plan. There was, he said, an understanding that should the First Tier Tribunal (FTT) decide against Rangers, the new liability would be absorbed into the Murray International Holdings (MIH) group of companies, just as MIH absorbed £50m of Rangers debt in 2004.
Johnston explained that the potential Employee Benefit Trust (EBT) tax liability was only 3% of MIH bank debt and that the group, which owned the overwhelming majority of Rangers anyway, would not find its position materially changed by absorbing the debt directly.
MIH would continue to manage its portfolio of investments back to rude health and neither it, nor its bankers, would have blood on their hands for putting Rangers down.
All this changed when Our Hero arrived on the scene with his £1. Johnston explained, as he had done in explicit detail before, that Lloyds Banking Group gave MIH and the independent board of directors at Rangers no choice but to accept the offer from Mr Whyte.
When the offer arrived last year Lloyds were already reaping a whirlwind of negative sentiment from being Rangers bankers and would view any exit from the situation as desirable. The bank itself, now significantly owned by the taxpayer after a government bailout, was also under immense financial pressure with a fiduciary responsibility to reduce their exposure to bad debt. They were hardly in a position to refuse £18m to clear existing debt with the removal of a potential £50m liability.
Once the offer materialised it was inevitably accepted. The old board’s plan to successfully steer the club through the potential loss of the FTT intact was usurped.
Neither MIH, the independent board nor, it could be argued, Lloyds, had any choice. Although while Mr Johnston insisted his hands were tied, he failed to see the bank’s decision makers were also between a rock and a hard place.
One final push (this week) for the Vanessa Riddle Appeal. We have a Celtic top signed by the first team squad available to auction on eBay. You can bid on the auction and help send Vanessa for the treatment she needs by clicking here. Thanks to Penfold for the donation and to Taggsybhoy for organising (yet again).
We don’t need no stinkin’ Rangers.
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Todays the day the teddy bears have their pitch nicked….
RobertTressell 13:26
Superb stuff, well done amigo.
This is just a brilliant feeling……
We’re rollin, we’re rollin, we’re rollin down the Highway……
tully
Wonder if Craig Whyte has a bunker to top himself, the pace at which things have moved over the last two days makes me think of the Russians invading Berlin.
HMRC argued neither club nor directors were allowed to appoint administrators for five days. #Rangers
8 minutes ago
Roddy Dunlop, #Rangers lawyer, say they can appoint administrators because floating charge holder has approved it.
RobertTressell says:
14 February, 2012 at 13:38
No
HAil Hail
Paul 67
Thank you for a brilliant blog today. Due to the clarity of your article, a financial numpty, such as myself, now has a very coherent understanding of the timeline, the characters and institutions responsible and the reasons for Rangers FC being on the brink of administration/apocalypse. It is clear that Lloyds Bank and Craig Whyte have played a heroic part in the proceedings and that Celtic supporters and supporters of every other club in Scotland owe Lloyds and the MBB a massive debt of gratitude.
I am seriously considering transferring my overdraft to Lloyds!
The smart money is on Hector
Paul67 – See when it does happen can you get your Weather Widget at bottom of blog to read minus 10.
The only broken Huns crest so far was in the Herald.Plenty of burst Hun baws in more ways than one
If they get put into 3rd division, who do you think they will get drawn at home to in League Cup & Scottish Cup for the 1st couple of years, to give them much needed income?
Apologies beforehand.
But can someone give me a quick idiot’s guide to the scene unfolding just now and the potential endgames.
Are we seeing them getting away with it at the expense of a club?
Namelt their own…
U
awe
Thatll save them buying bog paper!!!
wee minger –
since you have a brain
can you more importantly hazard a guess at the amount of money owed by Football Clubs owe HMRC in tax and tax avoidance?
cheers
Not wavin’, but holdin’ the floatin’ charge…
DBBIA/StevieSmithCSC
Not even this guy can help MBB now!
http://www.youtube.com/watch?v=DusJhNrbmww
The trading whilst insolvent thing is key here.
For the consequence is that the directors become personally liable for the debts of the company.
Hector might just get paid some of his money after all.
And I hope they get involved in Whyte’s divorce action to prevent him alienating assets via a divorce settlement.
midfield maestro says:
14 February, 2012 at 13:40
If they get put into 3rd division, who do you think they will get drawn at home to in League Cup & Scottish Cup for the 1st couple of years, to give them much needed income?
————————————————-
That’s assuming they get past the first two rounds. That will be their reality. Ha hahahahahahahahaha
Midfield Maestro – Linfield?
Cara Sulieman @carasulieman Reply Retweet Favorite · Open
#Rangers given until 3.30pm to appoint administrators. If they do HMRC’s application will no longer stand.
Don’t like the look of this..
.
After Admin..
To Win the Title @ iPox..
OK, so here’s how it works in terms of winning the league at Ibrox:
The magic number is 22…
Is it plausible that the hun team will be so badly asset stripped and demoralised that they’ll drop 5 points more than us over the next four games?
Killie H, ICT A, Hearts H and Dundee Utd A is a big sequence of games, but our four aren’t going to be straight forward either…
Since the Big Swing began, they’ve dropped 1.4 points more than us per game…
Summa
Rangers given until 3.30pm to appoint administrators. If they do HMRC’s application will no longer stand.
one from Nick.
When you’re sad and when you’re lonely
And you haven’t got a friend
Just remember that death is not the end
And all that you held sacred
Falls down and does not mend
Just remember that death is not the end
Not the end, not the end
Just remember that death is not the end
When you’re standing on the crossroads
That you cannot comprehend
Just remember that death is not the end
And all your dreams have vanished
And you don’t know what’s up the bend
Just remember that death is not the end
Not the end, not the end
Just remember that death is not the end
When the storm clouds gather round you
And heavy rains descend
Just remember that death is not the end
And there’s no-one there to comfort you
With a helping hand to lend
Just remember that death is not the end
Not the end, not the end
Just remember that death is not the end
For the tree of life is growing
Where the spirit never dies
And the bright light of salvation
Up in dark and empty skies
When the cities are on fire
With the burning flesh of men
Just remember that death is not the end
When you search in vain to find
Some law-abiding citizen
Just remember that death is not the end
Not the end, not the end
Just remember that death is not the end
Not the end, not the end
Just remember that death is not the end
PC67
RobertTressel, great post.
BOOO!
#Rangers given until 3.30pm to appoint administrators. If they do HMRC’s application will no longer stand.
Grant Russell @STVGrant Reply Retweet Favorite · Open
Great spot by @mikefstv – Rangers can’t appoint their own administrator today as they must give 5 days notice bit.ly/xVoFHP
Retweeted by BJMAC67
Like the look of this tho’
ernie lynch says:
14 February, 2012 at 13:19
Imatim and so is Neil Lennon says:
14 February, 2012 at 13:00
‘The appointment of Reagan to the SFA and the previously unheard of vote for change from that hun infested institution.’
How do you explain the appointment of Ogilvie?
He was on the huns board when they set up the EBTs.
And when they issued the orange away top.
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
2010 Never Again
Ogilvie was always going to happen. It was by ascension.
And don’t you think if anyone is compromised it’s Ogilvie by his direct link to EBT’s?
Let’s see how this plays out and where this leaves Ogilvie when the dust has settled.
There’s been a plan imo Ernie and I think it’s been played out very well.
And I would bet there’s a dossier in the right hands somewhere too.
Tully57 – thanks – this is just the mentalist day ever!!!!!!
Keeps getting better.
Lennybhoy, glad to hear it.
DBBIA, he’s sitting in the same room as me and trying not to notice me.
malceye, sounds like the defenders won?
Tax bills do not shrink to suit inferior clubs.
Can someone please explain to me – WHAT DOES JELLY AND ICECREAM MEAN?!
Paul67
Are they not just winning more time to delay the inevitable?
RobertTressell says:
14 February, 2012 at 13:26
Exceptional. You echo all our thoughts.
GOD but it’s a good day to post on CQN ;-)
Happy St Valentines Day Celtic. It’s been a long time coming but a change is gonna come…
Chris
Rangers have until 3.30 to appoint an administrator with consent of HMRC
Rangers getting to appoint Administrators by 3:30 if not HMRC do
The administrators will be Duff & Phelps
The administrators will be Duff & Phelps. #Rangers
HMRC will only accept the appointment of administrators if it’s done by 3.30pm. #Rangers