I see Leeds United are being held up as a model for Rangers to liquidate and emerge as a new club. Leeds United’s circumstances are highly unlikely to bear any relationship with those at Rangers unless Duff and Phelps can agree a Creditors Voluntary Arrangement.
Leeds United AFC Ltd entered administration in the control of KPMG Restructuring on 4 May 2007 and on the same day were sold to a new company Leeds United Football Club Ltd subject to a Creditors Voluntary Arrangement (CVA) being agreed. Both Leeds United AFC Ltd and Leeds United FC Ltd were controlled by Ken Bates.
A CVA requires 75% of creditors (by value) to vote to accept a reduced percentage of the money they are owed. The company was forced to act as HMRC, who were owed in excess of £6m, had issued a winding up petition which was due to expire on 25 June 2007.
Before creditors voted on the CVA several other bidders came forward with offers for the club, however, the vote, on 1 June 2007, returned 75.02% of creditors accepting the CVA offer (75.20% after a recount).
Creditors can challenge a CVA within 28 days of the vote. On the 28th day, 3 July 2007, HMRC challenged. With the CVA subject to a challenge, KPMG asked for further offers for the company to be submitted by 9 July 2007. Despite the extended offer period, the administrators still accepted the offer from Ken Bates Leeds United FC Ltd.
With a CVA agreed, subject to challenge, the Football League transferred Leeds United AFC’s league share to Leeds United FC Ltd under its “exceptional circumstances” provision. The League imposed a 15 point penalty on the club for the 2007-08 season for failing to satisfy the outstanding legal challenge in time, necessitating the ‘exceptional circumstances’ rule.
HMRC withdrew their objection to the CVA the following month. Leeds United subsequently appealed against their 15 point penalty citing a CVA had been agreed and that the league programme does not allow time for spurious challenges to be dealt with. The Football League refused the appeal.
Believing Football League procedures were at fault, not their own behaviour, Leeds United served the League with a High Court writ to challenge the points deduction, however, both parties agreed to abide by the findings of an arbitration panel hearing.
The arbitration panel found against Leeds United citing the following two reasons:
A director of Leeds United FC signed an earlier agreement not to commence any proceedings against the League.
Leeds United waited 7 months before commencing the action, which brought unnecessary sporting consequences on other promotion chasing clubs, specifically Doncaster Rovers, who would no longer be in an automatic promotion spot if Leeds’ 15 points were restored.
In summary:
Leeds United AFC Ltd’s administrators achieved the necessary 75% support for a CVA.
They withstood the challenge from HMRC, paid creditors and concluded the transfer of assets, including League share, to Leeds United FC Ltd, according to the terms of the CVA before winding up the old company. No loose ends were left.
This is not a Liquidator’s Charter. Provisions in football only exist to transfer a League share from one company to another if creditors are satisfied, either by being paid in full or, as with Leeds United, with 75% agreeing to accept a diminished amount.
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1,227 Comments- Pages:
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Rasperry
a good rep will laugh them out of the interview…
Dick
LMFAO
Dont ask me why but your escapade to the Tate reminds me of this clip
Context: Father does not know that his frustrated daughter has been telling all the guests at their hotel that he is her boyfriend. Due to the vast age difference the other hotel guests hate him. He doesn´t know why they hate him..
…. So he tries to win them over with this ditty
http://www.youtube.com/watch?v=pqgeKGoJjig
Hail Hail
Can I have…
It’s awful that should be allowed to happen though I think any half decent lawyer would drive a truck through it.
I do think that behaviour of this sort would not be specific to Scotland.
The Simon Kuper article is great reading. Makes me wish I could watch the Barcelona game from last night again with the points he makes on a bullet-point list in front of me.
One thing, though. He says of Albert Capellas: “He helped bring a boy named Sergio Busquets from a rough local neighbourhood to Barça.”
Sergio’s da was a Barcelona goalkeeper and played with Pep. He was in the squad that won the club’s first European Cup in 1992 and as soon as he stopped playing became a goalkeeping coach at the Camp Nou.
His boy’s story is hardly rags to riches.
Sixteen roads to Golgotha
That´s a good lad .. taking my advice… it will help you
Hail Hail
The conversation was concerning the curriculum for excellence. Discussing the low take up by certain schools( don’t have St. at the start). Only when he mentioned his school did meeting decline into the inquisition. Poor guy is heartbroken.
Can I Have Raspberry On That
circumcision of excellence
Not guilty !!
hail HAil
Sixteen roads to Golgotha on 4 April, 2012 at 14:11 said:
Kick-off times,Celtic games in April:
***
Some interesting fixture facts this season:
Celtic had 1 home game in January, none in March, 2 in April. This involved gaps of 28 days (twice) and 35 days.
There have been 14 different kick-off times (excluding friendlies) ranging from 12 noon to 8:30pm.
Sixteen roads to Golgotha
Thanks for the response.
if you wouldn’t mind indulging me:
Do you think that jewish people have a right to feel victimised and, if so, do you draw any broad parallels with their treatment at the hands of the nazis and the treatment of Neil Lennon by the majority of the people of Scotland?
And, just for my benefit, do you hate Liverpool because you dont like the way some of the people from that area speak or is this prejudice more profoundly based?
Auld Neil Lennon heid on 4 April, 2012 at 15:28 said:
As it is obvious that THEY will not be seriously dealt with then we either throw in the towel or make the best of it. If we opt for the latter, then we must keep trying to improve the team.
Given the manifestation over the last couple of months of how rotten Scottish football and wider elements of society are, my own preference would be a Belfast Celtic scenario. Imagine the blind panic that one would induce.
I think we should get back to skelping huns and celebrating the death of Rangers with jelly and Ice cream I hate all this racist talk it so uncivilised.
Hail Hail
O.G.Rafferty on 4 April, 2012 at 15:19 said:
Breeny, 15:09
There are many pieces to this jigsaw but some more important, at this stage, than others
===================================
Any jigsaw needs a picture of what the pieces represent if they are to fit together. This particular jigsaw has many pictures to present to the world, but for me the picture can be presented in
One word
Five letters
TRUST !
Not in an ebt sense but in what ebts were based on, that the parties involved would act with honesty and honor and in doing so ensure credibility in the very concept of trust itself.
What we are witnessing on a massive scale is a betrayal of trust.
By Rangers who have betrayed all they thought they stood for. Dignity , honesty and righteousness.
By the media who betrayed the Rangers support in particular and the football reading public in Scotland at large. Purveyors of myths, lies and mistruths, whilst avoiding the very truths they were supposed to uphold and protect.
The SFA and SPL who betrayed the game they were supposed to protect by not adopting and applying their rules “with rigor”. Remember that statement after the Shame Game’s supposed “summit”?
And for what? To sustain an institution that simply does not work at any level, financial, business or moral. An institution whose history should be buried so that from the ashes something worth preserving might grow.
The Easter message is timely. It began with a betrayal of trust, for how many pieces of silver? It moved through pain and death but led to the restoration of the best of human spirit.
The kind where the truth was revealed in all its humble dignity and righteousness, the kind of spirit where trust cannot be betrayed.
Time for the best of human spirit to prevail. Time for Rangers, the media and the governors of football to face the truth and act on it in such a way that trust itself is resurrected.
Awe_Naw
As you know, small cuts can be just as painful.
merseycelt
Come on your now abusing people with obvious learning difficulties with such difficult questions concentrate on the huns dying.
Hail Hail
Can I Have Raspberry On That
that was our secret !!!!
Did you use bonjela like I suggested. ;-)
Hail Hail
Dick
To save embarrassment in future, might I suggest a Mac and newspaper with two holes cut in it.
Gents
Taking 7 seater down to Killie from Erskine on Saturday. On my lonesome.
Any guys on route want a lift let me know.
Rasperry
As I said get his union rep to go for them…
his employer has a right to prevent bullying due to religion ..
Awe_Naw
She preferred something hot!! Let’s not go there
Awe_Naw_No_Annoni_Oan_Anaw_Noo on 4 April, 2012 at 15:33 said:
I am laughing,you do realise that?
It gets far,far too serious on here sometimes.
Auld Neil Lennon
well said but don’t hold your breath on that one.
Sixteen roads to Golgotha
due to your lack of internet protocol only you know that FOR SURE
Hail Hail
Blantyretim
Union all over it. He still gutted though. Been moved to other office, union and I advised him to go on the pat but he is so straight you could draw a line to the moon with him.
Can I Have Raspberry On That
not you then ? ;-)
Hail Hail
awe naw
You’re just trying to be nice to me because I asked Paul not to ban you!
HH
Today is Dday for”final” bids so can anyone have a go at what we might expect to develop through the course of the day?
merseycelt
I admire your patience and vocational choices … nowt to do with me getting banned though ;-)
Hail Hail
Awe_naw
No me. Always wash before you brush!
:->
Can I have Rasperry on that
good to know that …
KTF
IMO isreal has taken on the mantle of the nazi’s in their treatment of palistinians. When they adopted such behaviour they reduced my sympathy for their own plight.
Oh and anyone who declares eye for eye Resolution is a savage in my book
I have referred the good man, to this great community of loving, welcoming, knowledgable people.
We can get him through it.
Thank you all
breenjy they are going to be saved bud. they will come back stronger just you wait and see. the composium of the blue nights will win and clear their debts. alistair is going to get a 50 million quid warchest in the summer and they will be stronger than ever. you should maybe ask what are we going to do when that all happens. i reckon we will all be in the car park again
mon the hoops
Neil canamalar Lennon hunskelper extrordinaire
I have never tried to justify Israel’s stance regarding the Palestinians or any other Arab state!
Awe naw
I have spent more time on vocation today than attending to my work!
HH
A persistant hyper vigilance in the PC antenna…revolutions come when we least expect it- the best revolutions are those that arrive from a distance. Interminable, constant, and complete like a silent wave. As it happens all you hear is the thunder of transformation- with the deep calm re-ordering of what has gone before into a more visible presence of Truth & Justice.
A SToned wisdom.
Shoot! Burning the dinner as I rumble with heavens herb…fire extinguishers are a mans only comfort when he is surrounded by flames…
canamalar
If your going to start pontificating at that level then at least get the spelling of their names right.
Any one of them will do.
Hail Hail
merseycelt lmfao as the big house door slams shut on 4 April, 2012 at 15:35 said:
Yes,I do think that Jewish people have been treated harshly by the Nazis,and they do have a right to feel victimised.
As for Liverpool people? Do I genuinely dislike the said people,or am I winding you up,like an alarm clock?
merseycelt
LOL
I will hang around waiting for you at the CQN lynching tree :-)
We can celebrate hun demise nay obliteration
HAil Hail
So the snp are having secret meetings about RFC(IA). Wonder what westminster think about it. Im even more convinced they will escape the big tax bill. The Scottish government will probably pay it.