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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A big thanks to the cqn community. I have been in Aviemore for the weekend, always drive there, for some strange reason we took a train journey for the first time ever. The train journey has allowed me to read up on all the going ons re them due to this fantastic site. Cheers guys. The clock is ticking down to 3.30 on the fast train to Queen St.
hey’ve never been closer
They just can´t understand
That certain feeling
Carved by another’s hand
But it’s too late to hesitate
They can´t keep on living like this
Leave no track
Don’t look back
All I desire
Liquidation
Keep climbing higher and higher
Liquidation
Deplorable creatures
Liquidation
With unacceptable features
Liquidation
Trouble is coming
Liquidation
It’s just the high cost of living
Liquidation
You can take it or leave it
Liquidation
But you’d better believe it
You’ve got to make me an offer
It cannot be ignored
So let’s head for home now
Everything I have is yours
Step by step and day by day
Every second counts I can’t break away
Leave no trace
Hide your face
All I desire
Liquidation
Keep climbing higher and higher
Liquidation
You can take it or leave it
Liquidation
But you’d better believe it
Step by step
Day by day
Every second counts
I can’t break away
Keep us from Liquidation (x3)
Lead us not in Liquidation
All I desire
Liquidation
Keep climbing higher and higher
Liquidation
Adorable creatures
Liquidation
With unacceptable features
Liquidation
Trouble is coming
Liquidation
It’s just the high cost of loving
Liquidation
You can take it or leave it
Liquidation
But you’d better believe it
You’ve got to make me an offer
It cannot be ignored
So let’s head for home now
Everything I have is yours
Step by step and day by day
Every second counts I can’t break away
Leave no trace
Hide your face
Trying to find it
Liquidation
You’ve got to get up behind it
Put your dime in the hot slot
Liquidation
But it’s a million to one shot
Liquidation
you think that you’re right
Liquidation
Your gonna face it tonite now
Liquidation
Give me a breakdown
Because it’s time for a shakedown
Liquidation (x10)
then repeat last verse
eg.
Trying to find it
get up behind it
dime in the hot slot
million to one shot
think that you’re right
Your gonna face it tonite now
Give me a breakdown
it’s time for a shakedown
Much prefer to see HMRC appoint their own man/woman.
Even if just for the outrageous irony of HM officially being the one who put her club to the sword.
Uberschadenfreude
5th November 2011 – Ibrox Stadium – Forces Day
What a shower of worthless mutants they are.
Parading soldiers around the park to their crowing, cretinous fans whilst not paying PAYE and NIC that pays these guys wages.
It is shameful. Utterly shameful what that club have done in this country.
The Establishment throw a lifeline
Just had a text from a good source. Strathclyde Police have raised an invoice for policing Saturday’s game that must be paid in advance by Thursday or else game is off.
I’m loving it!
RogueLeader says:
14 February, 2012 at 14:04
—-
That , for me , is the most distasteful event in all of their posturing.
The hypocrisy of it is simply mind blowing.
Fassreifen says:
14 February, 2012 at 13:52
‘Do we know anything about Duff & Phelps? What were HMRC’s concerns about “public perception?’
##########
Rangers in crisis: Administrator-in-waiting David Grier will be faced with biggest decisions in club’s history
Feb 14 2012 By James Traynor
THE man in line to become Rangers’ administrator was right there with Craig Whyte when he took the keys to the Ibrox front door.
David Grier was one of the city slickers who marched down Edmiston Drive on May 7 last year, a day after Whyte had won control of Rangers.
He’d been commissioned by Whyte’s Liberty Capital company to advise on the takeover – and now his firm, Duff and Phelps, appear to be the preferred option as administrators.
We can reveal their people, described as restructuring specialists, will be at Ibrox today.
If Grier is with them, he’ll notice a dramatic change in atmosphere, as well as welcome.
This time, he won’t be cheered in by adoring fans.
This time, he’s more likely to be jeered, just as all administrators are who enter the football arena.
They are feared by fans because they are responsible for axing staff and salaries.
Grier’s company will have to do exactly that to save Rangers from oblivion only nine months after Whyte had declared a bold new dawn – and a debt-free one at that. But how times have changed.
If Whyte gets his way, Grier will have the final say on which players stay and which ones have their contracts ripped up.
Many Rangers fans and the members of the previous board fear that other assets could also be sold off.
They are concerned that Rangers – the company – could be broken up with “for sale” signs slapped on Ibrox, Murray Park and the Albion car park to raise money to pay off creditors.
The club would then have to pay rent for use of the properties and that would severely restrict Rangers’ ability to generate enough profit to make the team stronger.
That’s a doomsday scenario. But even if the business isn’t splintered, the administrator will still have to make some of the toughest and most far-reaching decisions in the club’s 139-year history.
He will also have to negotiate with HMRC, who are still confident of winning their Employee Benefit Trust case against Rangers.
That could land the club with a crippling £49million bill and last night Whyte claimed that figure could rise as high, with penalties, as £75million.
That sounds like scaremongering on a grand scale but even so, the administrator knows he might have to cut a deal with the taxman because Whyte has decided not to wait until the final ruling, which will be announced in a couple of weeks.
There would be absolutely no point in entering administration, paying off creditors and then exiting only to find HMRC waiting for him with their tab – no matter the amount.
So Grier would be tasked with bringing the taxman to the negotiating table and attempting to reach a compromise which could see millions wiped off any debt.
Then again, Whyte, like many who have followed this tax saga, might really believe Rangers will be left with only penalties of no more than £10million to pay.
So he could be gambling on a quick in and out of administration.
He might be able to pay a decent sum in the pound to creditors and that would make it easier for the administrator to wrap things up quickly.
The taxman would prove a much more difficult customer.
Whyte did say when he took over that he could handle a tax bill of around £12million and that might still be the case.
But first the administrator, who will be appointed by Whyte because he’s the main creditor, will have to be sure of cutting a deal.
Grier probably believed he’d done his bit to move Rangers on to a more solid base nine months ago.
Now he has to do it all over again and this time it might be even tougher.
He’ll have to cope with resentment from within Ibrox and Murray Park, where he might even be regarded as an enemy.
But that can be the nature of his work and if he gets this right and turns Rangers around, he could yet become known as something of a saviour.
http://www.dailyrecord.co.uk/news/scottish-news/2012/02/14/rangers-in-crisis-administrator-in-waiting-david-grier-will-be-faced-with-biggest-decisions-in-club-s-history-86908-23748131/
Another 10 mill owed?? Who was runnin that mob Homer Simpson?? Sorry Homer.
He will also have to negotiate with HMRC, who are still confident of winning their Employee Benefit Trust case against Rangers.
Oh how I hate repeating this.
HMRC won this case last year
It is Rangers that are appealing that decision.
Hail Hail
Craig White spotted at Glasgow airport dressed like mrs Doubtfire
ROBERT TRESSELL 1326
That was simply AWESOME!
An entire generation of sycophantic glory-hunters form the majority of the Hun support.
The hardcore Brears number around 4,000.
As Gerry McNee once infamously said of the Hun collective support – ‘they disappear like snow off a dyke’ when the going gets tough.
Expect many, many r-rolling, social-climbing, self-deluded ‘professionals’ called Findlay to suddenly become pre-occupied at weekends and unable to attend ‘the Gerrrrs’ anymore.
Ahhhh, what’s that smell?…Schadenfreude.
Rangers new sponsorship announced
Never mind Ash Wednesday!
Pancake Tuesday is here early and the huns are as flat as one!!!!
Can’t believe how quickly this is all happening, the backstabbing, finger pointing, accusations of criminal behaviour, cracked crest in the S*n, no cracked crest in the DR etc….
I think Wee Craigy’s passport should be taken in case he does a runner for Monaco.
I wonder just how many huns are gonna feel HUNted?
HH
AoW
henrik
HMRC They can be ruthless!!!!
On my local radio just now:
” Nobody loves you when you are down and out”.
JJ
Here is a wee song that was playing all over the sooooside yesterday: Dododo…Dara Dum…Dododo….Dara dum….The fat greasy chip inside ma gut is gonnae shoo hoo hoo hoo, A feckit a cannae sing:
http://www.youtube.com/watch?v=vtUAyB5EUb8&feature=fvst
Hail Hail
Finn
I just can’t stop myself (;-)
http://www.youtube.com/watch?v=fUbhmtaXZRM
TT
curious?
How to multi task? TV , radio….let the party begin