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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Thats 2 days in a row that Derek Reid from Dollar has not been in the D R Hotline page. Cld sumdae nick down and see if he’s ok? If you can be ersed that is!!
Does any one know how long it takes to appoint an administrator?
Ma heids burstin’
SP
I hope that castle has a very wide moat – not the type of moat that Gazza was friendly with though.
me too, StarryPlough!
Former Rangers manager Graeme Souness fears the club will cease to exist in their current form as they prepare to pay the price for “chasing the dream”. Speaking to talkSPORT he said: “I think they will go into administration and reappear as Rangers 2012 or something, sadly. It is just a tragedy that has happened to them.”
Brilliant!
LB
HMRC initially objected to Duff & Phelps – said there were concerns of “public perception” if they were appointed.
Courtesy of Cara Suliman
Grant Russell @STVGrant Reply Retweet Favorite · Open
Rangers will be in administration today. 105 minutes to appoint their own administrator
N L 13.46
Have you never been to a party??
so 14 clear at half 3 today? not a bad days work HMRC.
Could this be shrewd from Hector? Doesn’t give Whyte a great deal of time to have the i’s dotted and t’s crossed for an administrator….particularly if you want to Pre-Pack….
Paul get the pen ready, time for a special one straight from the heart.
Do we know anything about Duff & Phelps? What were HMRC’s concerns about “public perception?
Administrator to be appointed by the huns by 330.
Obviously a widow’s son was in chambers.
Disgraceful.
My Granda used to talk about how people could not believe that Belfast Celtic would ever disappear.
At the time of the withdrawal, all the talk was about coming back the next season………next season came and the rumours carried on, “It’ll be next year……..they can’t do without us.”
That carried on for many more years, but gradually the rumours dried up and cold hard reality set in.
The Grand Old Team was history. Paradise became a dog track…….now its a shopping centre.
I just watched Graham Spiers on Newsnight Scotland via iPlayer, and saw exactly what my Granda saw in Belfast 1949.
It can happen Graham, but this time it’ll be the bad guys suffering.
notthebus
Is that the wee fat poofy fortune teller??
Lawyers for Rangers are “confident” the 3.30pm deadline would be met, they will be burst
10 points down and no money,
Dont post much, usually just enjoy reading the banter. I got made redundant at the end of September turned out company hadn’t been paying PAYE so the tax man moved in. I now forgive Hector though not my old boss for puting me on the dole.
Paul67 and all the guys that post so frequently thanks for keeping everyone so well informed about everything Celtic and whats happening over at the dark side.
Cheers Mick
HH
Hector plays a mean game of poker..
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
Huns to appoint before half three WITH CONSENT of Hmrc. If not done by then Hmrc will put in their guy
Duff was a goalie and Phelps a diver!!
Drove by the front door of ibrokes not long ago.
Some police and cameramen there. No orcs at all!
They obviously don’t care all that much about their rancid club.
SPF
F Five says:
14 February, 2012 at 13:53
Great post Mate…
SP
Agreement reached in court of session.
RFC to appoint before half three with consent of Hmrc. If not done by then Hmrc will put in their guy.
Would someone switch on the Countdown music
HRMC added to the FollowFollow ban list. Yes, it’s gone that far…
90 mins plus extra time to admin
HMRC case against Rangers today appears to be over a new issue, £10 million PAYE and Nat insurance bill. #celtic #rangers
from twitter
KTF this is not even the Tax Bill…
Cripes, is this not a bigger mess than even the most vengeful Celtic fan might have hoped for.
So as not to disappoint anyone, I expect a Rangers football club, of sorts, to carry on and I do expect the penalties to be mitigated by the potential damage this does to the whole of Scottish football.
We do not need Rangers, but many of our competitors do, and whilst our need is not absolute our route back to holding the status we aspire to will be dented, potentially forever. Unless our board take urgent steps to find a new market for the club.
However, as it unfolds I’m stunned by the obvious negligence, fraud, and potential criminality. Those who have led Rangers to this point really should be imprisoned. I say that as a taxpayer and citizen first, and a football fan second.
If i’ve misssed it, i’d be grateful if someone could clarify whether Rangers could appoint administrators if they had sufficient working capital to run the business. In other words they could not pre-empt the outcomes of the tax case, and therefore were already running short. Or is it that the tax bills were served already, and in fact the requirement to pay them has been a given for well over 12 months and that means they’ve been technically insolvent since. That means every contract renewal, signing, or purchase of goods etc was potentially fraudulent…
This is just one angle of many… The whole thing is disgusting.
I think the problem many of us are having is in the distinction between the club or entity and the business and it’s masters. I’m not sure why, because we do understand the distinction between our board and our support.
In the aftermath of yesterday, I’m more on the fence about the degree of punishment than previously. The scale of the ‘crime’s’ seems to be beyond most speculation, and ultimately Rangers football club is a collective. They let themselves be buggered (is that allowed).
This business with the stockbroker… I’ve a wee bit of insight into what they were doing there, and it’s staggeringly inappropriate. At a brief glance, I’d say that there are employees, customers, and investors all over the UK should be nervous about Whyte’s dealings. This man is a one man wrecking ball…. So, I’d be fairly sure the HMRC will chase this man until he’s in jail, presumably he needs one big swing and some luck to get ahead of the game before his house of cards comes tumbling down.
kikinthenakas says:
14 February, 2012 at 12:59
Bobby Murdoch
You wearing knickers these days?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Quote from my sister,so shame to waste it for want of poetic licence.
Thugh it might explain a comment I made to HAMILTONTIM on Saturday,haha!
Am I right in thinking that Wavetower hold the Floating Charge ?
Bought with the money from future season ticket sales. ?
BFDJ
“Rangers will not go bust” Classic last night from D J was. “Ah sut”, yes “SUT”, here last week and said da dee da dee da. If you get my drift.
Lord Sugar:
Rangers Football Club given until 15:30 to appoint administrator or court will appoint one. Maybe Bernie Maddof can do the job from jail
typical huns
330pm….oh the 4th official holds the board up and its another 4 added years
Christ Almighty three wins and a draw and I missed them all still 10 points is 10 points:0)
new article posted.
Lads what’s yer preference, whyte puts them into admin or HMRC
Am I the only one thinking that MBB will bolt the course in the next couple of days?
.
FOOTBALL news: Celtic have appealed Daniel Majstorovic sending off will be heard by fast track tribunal on 16th February
Summa
with the help of a bit of lateral thinking, maybe Craig Whyte is a Vatican Agent. If so, he’s doing a great job is he not?
KINGLuBO