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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Merseyside
But you see fit to condemn a man as a supporter of the holocaust, simply because he implies the Jews might not be spotless when it comes to racism or sectarianism.
Sixteen roads to Golgotha
Some of the finest people I have met are scousers and remind me of my friends in Celtic!
Shall we call it quits?
HH
peeple deranged cos they love rangers
Faces are ugly when you’re a hun
Women seem wicked cos they’re unwanted
Streets are uneven when you’re run down
When you’re deranged
Feaces come out of the drain
When you’re deranged
NO ONE WILL REMEMBER YOUR NAME
When you’re deranged
When you’re deranged
When you’re deranged
peeple deranged cos they love rangers
Faces are ugly when you’re a hun
Women seem wicked cos they’re unwanted
Streets are uneven when you’re run down
When you’re deranged
Feaces come out of the drain
When you’re deranged
NO ONE REMEMBERS YOUR NAME
When you’re deranged
When you’re deranged
When you’re deranged
When you’re deranged
Faces come out of the rain
When you’re deranged
NO ONE REMEMBERS YOUR NAME
When you’re deranged
When you’re deranged
When you’re deranged
Awe naw
Naw
merseycelt lmfao as the big house door slams shut on 4 April, 2012 at 15:55 said:
Fair enough.
Not all Mystery can be solved or explained- sometimes we just need to recognise there is an alternative and allow ourselves to be seduced by it’s presence.
If it needs expained to you then you’ll never understand.
That recognition comes when you learn to see without the mind…am aff tae America…suitcases packed…gonni start a Cult…wance av put this fire oot…
Neil canamalar Lennon hunskelper extrordinaire on 4 April, 2012 at 15:54 said:
Merseyside
But you see fit to condemn a man as a supporter of the holocaust, simply because he implies the Jews might not be spotless when it comes to racism or sectarianism.
—–
The point I was trying to make was about stereotyping and subsequently did. I didn’t seriously think he approved of the holocaust and he has clarified his position on that subject.
I’ve had enough fights for one day, so if you dont mind…
HH
Pardon the jibber! Smoked too much of the Holy Skunk!
canamalar
For sure I didn´t think you could either but your illiteracy really strengthens your arguments so you shouldn´t change.
Hail Hail
Not sure what to do here.
Sometimes for those of us on ESA the choices we face stretch our judgement to twanging point!
What would you do faced with this conundrum!
I need milk for my tea but also want to put a late bid into Duff and Phelps. I can’t afford both!
My consortium – the Professional Independent Resuscitation Accountancy – are sitting in my kitchen at the moment learning how to cook the books.
Hail Hail
Estadio
Imatim and so is Neil Lennon on 4 April, 2012 at 14:37 said:
Outstanding article. Where’s it from?
Awe Naw….
It’s Faeces! :-)
Hail Hail
Estadio
£16.90 not really going to cut it I think…
“The Blue
Knights Consortium, led by Paul Murray and
supported by fans’ representatives (from the
Rangers Supporters Assembly, the Rangers
Supporters Association and the Rangers
Supporters Trust) and Ticketus, confirms
that it has this morning submitted its best
and final bid for the acquisition of Rangers
Football Club ahead of today’s deal.”
@alextomo: RFC Admin telling me they “know nothing” of any “top secret” mtg tween them/Salmond/hmrc – they’re checking right now for me
Estadio
dont start you´ll have canamalar blaming the Romans soon and then all hell will break loose ;-)
HAil HAil
roccobhoy, macjay, thanks for your thoughtful and constructive responses to my post of earlier today – (here for anyone who wants to see it – regarding Kojo’s ill-advised post of last night. macjay, I echo your comments about the evil apartheid regime. My point was while racial discrimination is unadulterated racism, and support for racial separation is deeply objectionable to me, and in practice commonly associated with supremacist and racist attitudes; but it is not racist in and of itself.
Such nuances, essential for any balanced view of a complex matter, may be lost on those who take a more strident view on the subject. merseycelt, I respect the strength of your feelings and are largely sympathetic to them; but when you try to categorise me as a ‘racist apologist’ on the back of a post that makes my abhorrence of racism quite clear, you are (apart from gratuitously insulting me) simply reinforcing my argument about the need to avoid knee-jerk responses in such situations, and when you tell me that I am defending Kojo when I am simply pointing out that he has a right to a defence rather than a summary trial and exclusion, you simply give the impression that you didn’t even take the time to read my post properly. It related to the need for justice, and when appropriate, tolerance. I am not an apologist for racist views, and regard their overt expression as inadmissible in any civilised forum.
Has there been a reason given for not awarding the throphy against Rangers?
Why not just do it at Kilmarnock, there will be plenty fans there. Then they show it before or after the Rangers game (or better, at half time) for the home support.
Cmon Alex it’s top secret you’ve got no chance to find that out.
Awe_Naw_No_Annoni_Oan_Anaw_Noo on 4 April, 2012 at 16:04 said:
Are you prejudiced against people whom type the odd spelling mistake?
Sweeping generalisations,and all that there and all?
That could be lead you to being labelled as being racist.
NeilR
I blame you for going missing in action.
The whole tone of CQN has dwindled since you made yourself a stranger ;-)
Hail HAil
Awe naw,
Advice accepted, will not be changing anytime soon
If there’s a problem with spelling I accept it completely discredits any argument I might offer.
Obviously anyone who can spell has a far higher intellect and I should tug my locks at that superiority, but I won’t
Hail hail
Estadio:
I cooked a book once: then I made alphabet soup from the letters! Literally yummy!
I see we are still into the mud slinging and racial purity debate.
What kind of Easter Egg are we all opting for on Sunday?
Will I get a yellow card if I confirm that I dont like dark chocolate. :(
NeilR
May be wide of the mark here but are you Kojo?
HH
hen1rik on 4 April, 2012 at 16:07 said:
Wouldn’t it be utterly superb if the supposedly secret meeting with the Scottish Government had been with those self-same Celtic Bhoys who got the speak with MBBCW …
Please, let it be so!
FF
Sixteen roads to Golgotha
Are you not laughing anymore ?
Awe come on now .. shake yersel !
Hail Hail
canamalar
Naw but you will make a connection with the eejits or am I being dyslexist ?
Hail Hail
Awe_Naw_No_Annoni_Oan_Anaw_Noo on 4 April, 2012 at 16:12 said:
Grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr.
Rascist!!!
NeilR
Thought your earlier post and this most recent one were thoughtful, considered and accurate.
awe naw
You nearly went into declan-speak there!
Coincidence?
HH
Lot of bad Juju on CQN today- who violated the Great Tao?
Folly Folly on 4 April, 2012 at 16:11 said:
hen1rik on 4 April, 2012 at 16:07 said:
Wouldn’t it be utterly superb if the supposedly secret meeting with the Scottish Government had been with those self-same Celtic Bhoys who got the speak with MBBCW …
Please, let it be so!
LoL
merseycelt
It’s time to grab the bull by the tail and look him in the eye and from now on, I’m watching everything they do with a fine-tuned comb.
Hail HAil
NeilR
Sorry posted too early!
However, I think the reaction of some posters is a reflection of their antithesis to a number of his posts rather than merely the one last night.
Hamiltontim
I respect your views but, in my opinion, Kojo’s remarks were racist as I have argued earlier.
What is the case for the defence that he should be allowed to defend himself?
Well, nobody is stopping him and, certainly, he may be around later!
So, perhaps, we’ll get to hear what the great man has to say!
Which, as others have argued, is exactly what he wants-to be the centre of attention!
BTW, I’m not looking for an argument. I accept that you dont agree with my view!
HH
awe naw, it’s a fair cop – but society is to blame. And Kojo, obviously :-)
merseycelt, no, I am not Kojo. Is it so hard for you even to recognise a tolerance of the views of others, or the validity of giving another person the benefit of the doubt while some remains?
hamiltontim, thanks, I appreciate it.
Awe naw,
Wipe yer mouth the excrement is dribbling down yer chin.
Telling someone he supports the holocaust because he doesnt consider the Jews innocent of sectarianism or racism is a bit OTT IMO
canamalar
I think both sets of arguments are a pile of crap.
AND THEY ARE