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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Kojo at it again I see. Don’t know why people bother to read his posts. He is an attention seeker with a brain that works differently to most others. Scroll by him. I certainly do. Then the blog won’t be taken up for 24 hours with people enraged at his latest attempt at witty banter, humour or ground breaking opinions.
LB
Awe naw
FACT
Its time we all got out of our minds
& Into Reality.
canamalar
You want to sound like David Brent be my guest
Hail Hail
I have never made but one prayer to God, a very short one: ‘O Lord, make my enemies ridiculous.’ And God granted it.
Monsieur l’abbé, I detest what you write, but I would give my life to make it possible for you to continue to write.
Voltaire
On the question of Jews there seem to be some doubt as to whom was the first Jewish player to play for Celtic.
I have read it was Joseph Leo “Joe” Coen, Goalkeeper, 1931 and also that it was Jorome “Jerry” Solis, forward also signed in 1931. Wiki favours the latter.
Football , please.
Offer stands for lift on Saturday
I am a Jew. Hath not a Jew eyes? Hath not a Jew hands,
organs, dimensions, senses, affections, passions; fed with the same
food, hurt with the same weapons, subject to the same diseases,
heal’d by the same means, warm’d and cool’d by the same winter
and summer, as a Christian is? If you prick us, do we not bleed? If
you tickle us, do we not laugh? If you poison us, do we not die?
And if you wrong us, do we not revenge? If we are like you in the
rest, we will resemble you in that.
Hail Hail
Awe naw
Both seta of arguments are a pile of crap, but you obviously found one set of crap more palatable.
Or didn’t you jump in and take sides.
Or do you just go for bad spellers :0D
30mins to go and just one bid on the mighty huns
a bid that will amount to hee haw might I add
Merseycelt
I happen to agree with the majority of what you’ve said.
I would doubt there is anyone on CQN who has had to deal with the level of racism my family, in particular my brother, has had to suffer. I’ve fought (in every sense of the word) racism most of my life.
I thought NeilR’s posts were measured in that they dealt with all of the posts relevant to Kojo’s not just that post in isolation.
Hope that helps explain my position mate.
Early kick-offs.The reason I decided to log on here today.
More lurking,less posting.
Problem solved.
Cheerio.
So, is the deadline for bids 5pm?
Forget about new owners, CVAs, hybrid liquidations, newcos etc etc
Isn’t another alternative that they just die…like forever?
NeilR
I accept that you are not Kojo and are inherently racist.
You argue that
“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.”
I asked this question earlier and didn’t get an answer:
Why would you have a problem with racial integration unless you were racist?
HH
canamalar
one of those arguments that you are now calling crap was yours. Deary me.
I thought Kojo was a racist about 7 years ago (probably before you were born going by your content today) when on CQN he talked about shooting coons who had been rifling through the garbage.
Since then I have mostly ignored him.
I suggest you do the same and leave your racists sweeping generalisation for a non Celtic board … otherwise you would not have caught my eye today at all.
Hail Hail
30 minutes and counting
the Baron Knights are in
S Club 7 are out
Brian Kennedy is doing the hokey cokey
NeilR
correction-should read “not inherently racist”
Apologies!
HH
20 minutes to oblivion
HAil HAil
I finished reading the majority of Kojo’s comments after hearing him explain how Josh Thompson was going to be a star for the future of the club. This despite the evidence that he moved like a South American Three Toed Sloth.
tomthelennytim – stop being slothist
D&P just love deadlines especially 5pm ones. One bid in and it’s their ‘best’ one. Dear God it’s like dealing with a toddler. Well done the ridiculously named Bloo Knights for putting in your bestest ever bid. I’m sure Mr Whyte will enjoy dealing with you.
I wish I had an ice-cream van to drive up and down Edmiston Dr at 5pm with the chimes on. I’d even give the wee daft guy from SSN a cone, just to make him feel a bit better.
Brian Kennedy is disappointed again.
By all accounts he sent them a bottle of beer.
The admin guys sent it back saying that he was to submit a BID not a BUD!
Hail Hail
Estadio (who didn’t really want to put my name to that, but what the heck. I just a reckless guy I suppose)
Awe naw
You’ll remind me of that sweeping generalisation
The CQN comments section is an ugly, irritating place today.
I last looked in this morning, when half the posters were trying to excuse racism and the rest were using it to showcase their “I’m hipper and more liberal than you” credentials.
Even now it’s the same debate.
Shut up and start ridiculing the huns instead.
hamiltontim
Respect!
HH
RogueLeader
did you know that yesterday when you hovered over Declan1888’s twitter(‘twatter’?!) symbol it said… ‘Rogue Leader’ ?
Just sayin….
It was a broken link anyway as he seems to have updated it today… :)
Have a look: http://www.celticquicknews.co.uk/?p=8524&cpage=1#comment-1366028
HH
I see the Rangers website has a ‘proof of debt’ form which is to be filled in by creditors and dispatched to Duff and Phelps.
It would be outrageous and totally irresponsible if people were to submit bogus claims.
canamalar
No I wont
Hail Hail
Spiky railings being removed from around all high flats in Glasgow as we speak.
Wives, girlfriends and other breeds of partner can be seen attaching bunjy ropes to TVs and Radios.
Hail Hail
Estadio
Thought not
The Spirit of Arthur Lee on 4 April, 2012 at 14:01 said: TB2 Will there be an extra charge if it goes onto your voicemail? Love
Made me laugh in a plethora of heavy stuff HH
Poordeadking
That is a whataboutery argument.
You dont work for the MSM do you?
I haven’t thought I was hip for decades unless you’re talking about dodgy body joints!
HH
HH
NeilR on 4 April, 2012 at 16:09 said:
The problem is not racism, the problem, that caused you to respond, was judgement.
No judgement, no racism. In fact no turmoil at all.
Matthew 7:3-5
As soon as I read Kojo’s contribution last night I thought there’s gonna be trouble. Years of monitoring an on line community helps me to spot anything that would attract judgement from the readers.
How can anyone judge anyone else on the basis of a few words on a screen? They only reflect ideas in someone elses head, leave them there if they differ from our own.
Let life do the judging. It is extremely efficient, if often slow, at doing that.
So if it’s the blue knights .
Do any of the hacks in this town know who these blue knights actually are .
At least they knew CWs name (or one of them at least) and they still buried their head in the sand rather than look too deep into his credentials .
Will any of the unknown knights be introduced before the round table is installed in the blue room and do they have to get a bigger loving cup in
canamalar
cant be arsed.
Hail Hail
Headtheball on 4 April, 2012 at 16:46 said: I see the Rangers website has a ‘proof of debt’ form which is to be filled in by creditors and dispatched to Duff and Phelps. It would be outrageous and totally irresponsible if people were to submit bogus claims
That horse may have bolted last year mate HH
Traditionalist88 – LOL. My money was on Awe_Naw.
RL. ;-)