We have lots to do today so I’m not going to waste much of your time on the nonsense spouted by Kilmarnock chairman, Michael Johnston, yesterday, but it is important to respond to his claims.
After confirming Kenny Shiels will remain Kilmarnock manager next season Johnston said:
“As a solicitor, the difference between a CVA and a sale of the assets by the administrators to a new corporate entity doesn’t really have much of a difference for the creditors.”
The difference is consent. Creditors consent to a CVA, they do not consent to the establishment of a new corporate entity. Mr Johnston can speak as a Rangers fan or Kilmarnock chairman all day long without fear of contradiction, but if he speaks as a solicitor, he really should respect the weight the law gives to consent.
In law, acting with or without consent can be the difference between jail or freedom.
Johnston goes on to say:
“It is the same amount of money that’s going to be available to the creditors at the end of the day by and large.”
Yes, the same amount of money that has been declined by creditors. Offering them this cash when they have already refused it, and pretending they should have no concerns is crass stupidity.
“But there are legal differences and what people have to bear in mind is that a football club has always been viewed by the football authorities as being something separate from who owns the football club.”
In the history of Scottish football this has never, ever, ever happened. Third Lanark, Airdrieonians, Gretna, all failed to reach agreement with creditors, all went out of business. When Mr Johnston said “always” he should have said “never”.
And Mr Johnston, please remember, acting with a financial or other type of victim’s consent is good. Acting without a victim’s consent is very bad. Trying to equate these two scenarios is disgusting.
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