Johnston explains Sir David’s plan

478

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.

If you would like to read CQN Magazine online (for free), click here.  You can download a pdf of the magazine using the button at the top of the page, second from the right.  Click on the link below to order a hard copy of the magazine.

Ship to:

You can support the online edition by making a discretionary donation here.

Click Here for Comments >
Share.

About Author

478 Comments

  1. ArranmoreBhoyLXV11 on

    Wishart issues rallying call to Scottish football ..

     

     

    Aye right.. We ve waited as our ancestors did for this day..

     

     

    Fiscal intelligence.. We shall not be moved

     

     

    Something inside so strong !!

  2. Awe_Naw_No_Annoni_Oan_Anaw_Noo on

    I´m getting better all the time

     

    I used to get mad at my school (No, I can’t complain)

     

    The teachers who taught me weren’t cool( No, I can’t complain)

     

    You’re holding me down (Oh Oh)

     

    Turning me round(Oh Oh)

     

    Filling me up with your rules(Oooh)

     

     

    I’ve got to admit I´m loving Hector (Hector)

     

    It’s a little better all the time (It can’t get no worse)

     

    I have to admit I´m loving Hector (Hector)

     

    I´m loving Hector

     

    Since he´s been mine

     

     

    Me used to be a angry young man

     

    Me hiding me head in the sand

     

    You gave me the word, I finally heard

     

    I’m doing the best that I can

     

     

    I’ve got to admit I´m loving Hector(Hector)

     

    A little Hector all the time (It can’t get no worse)

     

    I have to admit I´m loving Hector (Hector)

     

    I´m loving Hector

     

    Since he´s been mine

     

     

    Getting so much better all the time!

     

     

    I´m loving Hector all the time

     

    Hector, hector, hector

     

    I´m loving Hector all the time

     

    Hector, hector, hector

     

     

    I used to be cruel to my woman

     

    I beat her and kept her apart from the things that she loved

     

    Man, I was mean but I’m changing my scene

     

    And I’m doing the best that I can (ooh)

     

     

    I admit I´m loving Hector

     

    A little better all the time (It can’t get no worse)

     

    Yes, I admit I´m loving Hector, I´m loving Hector

     

    Since he´s been mine

     

     

    Getting so much better all the time

     

    Hector, hector, hector

     

    I´m loving Hector all the time

     

    Hector, hector, hector

     

    I´m loving Hector all the time

     

     

     

    Getting so much better all the time

  3. The Honest Mistake loves being first says:

     

    14 February, 2012 at 13:07

     

     

    I think what we are seeing now is only the tip of the iceberg, this one will run and run, my expectations of justice are high!

     

     

    There will be a few people now who are very very nervous, there’s more to come how can there not be..

     

     

    SP

  4. Some numpty journalist on Clyde news just there saying he believes “Scottish society will rally round Rangers”. Do they really think all those people Rangers owe money to will simply take a hit for the good of this “great Scottish institution”? That people will voluntarily lose their livelihoods, their jobs, just to help Rangers? I’m sorry, but if they believe that they’re living in cloud cuckoo land. Simple economic self-interest will dictate that everyone calls in their bills, especially during a recession.

  5. The Honest Mistake loves being first on

    Cara Sulieman

     

    @carasulieman

     

    Case taken 20 min break for lawyers to get more instruction. #Rangers

     

    1:10pm – 14 Feb 12 via Twitter for iPhone

  6. starry plough says:

     

     

    14 February, 2012 at 12:41

     

     

    Breaking – Rangers have signed Daniel Cousin till the end of the season, or what Celtic fans commonly refer to as Tuesday…

     

     

    from twitter

     

     

     

    LOVE IT :-D

  7. TTT

     

     

    Sorry I didn’t get back to you.

     

     

    You’re right. No arguments from me today!

     

     

    Cyber drinks for everyone!!

  8. The Battered Bunnet says:

     

    14 February, 2012 at 12:53

     

    ‘Things are moving very fast now, and it will take a wee while to place it all into proper context.

     

     

    One thing is for sure though: Everything is now in play. Everything.’

     

     

     

     

    I said a while ago, in response to those who didn’t want us to be getting ourselves regarding a newco, that when it started it would move quickly.

     

     

    There will be plans in place to railroad through a newco into the SPL before people realise what’s happening.

     

     

    We need to be vigilant.

  9. Whoyouloovenat?? on

    can someone with a brain please put in % the amount rangers “potentially” owe HMRC, against the budget deficit for UK?

     

     

    would be interesting

  10. The Honest Mistake loves being first on

    Starry plough.

     

    It’s the paye man, it’s the paye.

     

    Laws have been changed recently for wrongful trading.

     

     

     

    The tests for wrongful trading actions include:

     

    Not filing Annual Returns for the company at Companies House.

     

    Not filing annual or audited accounts at Companies House.

     

    Not operating the PAYE scheme correctly, failing to pay PAYE and NIC when due, building up arrears.

     

    Not operating the VAT scheme correctly, building up arrears.

     

    Taking excessive salaries when the company cannot afford them.

     

    Taking credit from suppliers where there was no “reasonable prospect” of paying the creditor on time.

     

    Willfully piling up debt.

     

    When in a hole keeping digging!

  11. ernie lynch

     

    “There will be plans in place to railroad through a newco into the SPL before people realise what’s happening.”

     

     

    Yes for sure, he (Whyte) would not have begun the process prior to everything being in place por cierto.

  12. My understanding is that HMRC are in the court of session

     

    seeking appointment of a receiver with immediate effect,

     

     

    They believe rangers are insolvent and illigally trading, ie they have no money

     

     

    HH

     

     

    Mike

  13. 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.

  14. Afternoon CQN , catching up after yesterdays big day , no not that one my sons birthday.

     

     

    Paul, on your leader this may be what Alastair Johnston was told to keep him on side and get the accounts signed off, but as Lloyds now control MIH surely they would have rejected this and left Rangers to die rather than increase their exposure to MIH. Same old Minty, his plan was once again to solve his over spending by borrowing more money from someone else. They just don’t get it, you can’t keep spending at some point you have to pay it back

     

     

    fourteenpointsclearandcountingcsc

  15. pedrocaravanachio67 on

    Here we go

     

     

    Oh wee oh, oh oh (Oh wee oh, oh oh)

     

    Groove, uh!

     

    Drop out the horns

     

     

    It’s gonna be a beautiful, it’s gonna be a beautiful night

     

    U got your world 2gether, everything’s lookin’ alright

     

    2night there’s no 2morrow, this is gonna be the one

     

    (Alright Paris, we gonna see how funky U are)

     

    2night we’re gonna lose our sorrow, 2night we’re gonna have some fun

     

    (Are U ready? Come on, say it)

     

     

    Oh wee oh, oh oh (Oh wee oh, oh oh)

     

    It’s gonna be a beautiful, it’s gonna be a beautiful night, oh

     

    Keep singin, y’all (Oh wee oh, oh oh)

     

    It’s gonna be a beautiful, it’s gonna be a beautiful night, oh

     

    Paris, clap your hands

     

     

    ( full song too long and some sweary words )

     

     

    PC67

  16. Had an orc at work go on and on about how the HMRC are ‘targetting’ Rangers in a way that they’ve never targeted any other club.

     

     

    His examples of agreements being reached were Leeds Utd and Portsmouth.

     

     

    I think I may have to dissuade him of such nonsensical ideas.

     

     

    For anyone else having these deluded fools approach them with such tales, here’s a few facts regarding the two clubs:

     

    Debts listed by Leeds Utd showed over £35m owed to various creditors when their problems kicked off, marginally less than £8m was owed to Hector and The Bhoys. HMRC put a block, with several court challenges against KPMG, on a quick sale and 1p in the pound CVA until such time that KPMG ‘resold’ the club to Ken Bates guaranteeing around 50p in the pound.

     

    When Portsmouth initially faced administration, their debts were recorded as £119m, of which ‘only’ £18m was owed to Hector’s wrecking crew. HMRC only ever agreed to Portsmouths CVA in principle if the club were subsequently liquidated after 9 months and the CVA transferred to a newCo. Their CVA would see 40% paid out over 4 years. Parachute payments and other sundry payments were to be seized to pay creditors in the meantime. Hector has subsequently issued an assessment nearer £35m to Portsmouth, who have once more applied for ‘bad man’ protection via administration – HMRC are now looking for a quick winding up order against them.

  17. my understanding is that the HMRC move is very much a bolt out of the blue for the Hvns. Hence the reason their senior counsel needs a bit more time for instruction. At least he is now getting into court for them – he’s been waiting for the defamation actions for some time now…

  18. Whoyouloovenat?? says:

     

    14 February, 2012 at 13:17

     

     

    It’s about 0.0001% of our national debt. c£100M for Rangers vs £1000000M (£1 trillion)for the national debt.

  19. Looks like Hector’s going for the jugular

     

     

    Cara Sulieman on twitter

     

    HMRC argued neither club nor directors were allowed to appoint administrators for five days.

  20. The Blogger Formerly Known As GM on

    Never alone

     

     

    Thank you.

     

     

    Time will tell if anything more comes of this but we are agreed that the taxman is looking to set a precedent of sorts. Thankfully he chose to make an example of Ragers.

  21. The Battered Bunnet on

    malceye

     

     

    I was under the impression that Rangers pulled their move yesterday to stymie this action today.

     

     

    Are Chambers suggesting something different?

  22. SwanseaBhoy @ 13 06 ——

     

     

    ” RANGERS TRADING WHILE INSOLVENT ”

     

     

    If true then The Thousandaire has big problems.

     

     

    He might have to claim that Minty was too [ spread the burden of the criminality.] ” I was an unknowing party – Your Honorable Worshipfulness ”

     

     

    Wrongful . Fraudulent Insolvent Hun FC.

  23. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    PARTIZAN 1150

     

     

    Cheers,mate. Thanks for the input.

     

     

    I hope you don’t mind the clumsy way of putting this,but if you’re still refraining from the devil’s buttermilk after the news of the last 24 hours,then you’re a better man than I.

     

     

    Take care,bud.

  24. St Martin De Porres on

    Ernie

     

     

    i understand your concern…But ogilivie is no more than a administrator ( funnily enough)

     

     

    unlike the HMRC he has no real power.

     

     

    SPL/SFA cannot control events now. The wheels are already in motion and at much higher legal level. Like us in many ways they are interested bystanders

  25. Awe_Naw_No_Annoni_Oan_Anaw_Noo on

    Lennybhoy…Supporting Neil Lennon and CFC until I die says:

     

    14 February, 2012 at 13:13

     

     

    BAck OFF … Paul67 is my Valentine :-)

     

     

    Hail Hail

  26. Listening to some music at the moments and a wee song has just came on

     

     

    Dont Worry Be Happy. lol