Yesterday Graham Wallace, Norman Crighton and Sandy Easdale offered to giving a legal undertaking be security would not be given over Ibrox and Murray Park in return for a loan.
Security over a property asset is only one way for lenders securing that asset, it is not the most popular, or even necessary, for the lender to control assets. More commonly, a lender will require a floating charge over the assets of the company.
A floating charge ‘floats’ over all assets of a company until it is discharged by full payment, or it converts into a fixed charge over whatever assets the company has at that point in time. This is usually due to a payment default, but can also be triggered by a weakening in one of the company’s trading indicators (say, poor season ticket sales). A company can only issue one floating charge over all their assets at a time.
If you get a bank loan for a value which is significant to your size, you’re almost certain to sign over a floating charge over the assets of your company, no matter how good a trading record you have. This is true for Celtic and Manchester United, and would absolutely be true for Newco Rangers. Stakeholders at Celtic and Manchester United would not bat an eye at this, as there is zero chance of them defaulting.
It would simply not be possible for Newco to secure a significant amount of conventional borrowing without granting a floating charge.
With the floating charge in place, no other creditor can step forward and make a claim on the assets until the secured creditor is satisfied. In many circumstances, lenders will prefer a fixed charge, as it prevents the borrower from selling key assets before an insolvency event. With a floating charge, Newco could still sell Ibrox under the nose of the lender and fans alike.
In the event of an insolvency event, the floating charge becomes a fixed charge over whatever assets the sheriff officers can find. In terms of Newco Rangers this would mean the stadium, training ground, the bike, loving cup, a hundred weight of marble, balls and stripes. Ebay would be interesting when that lot was uploaded.
Perhaps this is why Celtic have hidden Lennoxtown up a country lane. “No training ground here, mister, it’s just a field. I wouldn’t take that car across those potholes.” Peter’s not daft, you know.
For Newco, giving a legal obligation that the company will not provide a fixed charge over property assets is, quite literally, not worth the paper it is written on, without also committing not to provide a floating charge over all the company’s assets. It would be “We promise not to give security over only some of our assets, if we give security, it’ll be for everything”.
Legally prohibiting your company from providing a lender with a floating charge also prohibits you from accessing conventional lending. It would be ludicrous, and could only be considered if the alternative would bring the wolf to the door immediately, in other words, it might bring in season ticket money, but it would ensure an almighty crash as soon as the ticket money is consumed.
For well over a decade the various episodes at Ibrox have been an exercise in making people look the other way while dirty deeds are done. Still, the world’s Gullible Champions show no sign of figuring out what’s going on. After season ticket money is banked, keep your eye on the floating charge.
The fate of whatever football team plays at Ibrox was set in a firm direction when Rangers incurred unsustainable debts. As a consequence of this, their majority owner sold his shares to a liquidation expert. The train was in motion long before May 2011.
Instead of asking Rangers International for a meaningless commitment, an acknowledgement of the situation should be made. Reality is:
Key assets cannot legally be put beyond the reach of creditors.
The directors must legally look after the interests of shareholders – or be liable for their losses.
The club has a massive trading deficit to fill next year, the year after, and probably in many subsequent years. Estimates of this being between £30m and £50m only acknowledge the next few years deficit.
There are no good choices now, only less bad ones. It would cut ‘Rangers’ fans to the core to become tenants paying a high rent for the use of Ibrox, but flogging this asset might secure them enough cash to reach top flight football – and there is nothing whatsoever fans can do to blackmail the club into retaining this asset.
Whether they consider Newco to be the same club or not, future ‘Rangers’ branded teams will be nothing like those of the past. There is a possibility they will have a team to support, but it will not be a Champions League team, and Ibrox might not even be the best place for it, a St Mirren Park-type venue, packed out every week, would at least allow them to pay their bills.
The Sevilla keeper moved. Three referees watching. Three referees! Two on the line, whose only job was to check if he moved! Last night I considered corruption was at play but there is another possibility. Calling out the keeper was a huge moment for the assistants, each of whom may have preferred one of the other two referees make the call. It would have been a huge call for the main referee, too, but he could have deferred to his assistants, who were in prime position.
Without clear responsibility, all three were frozen in silence.
Tommy Gemmell is on CQN tomorrow from 13:00 – 16:00. Tune in and have a ‘chat’. You can order his autobiography, All the Best, due out next week, from the link below.
772 Comments- Pages:
- «
- 1
- ...
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- ...
- 21
- »
Excellent portrayal on UTV of the fight put up by Wee Oscar and his family, and the effect he had on so many people’s lives, including many hundreds on this forum.
Seeing him run up to cuddle Hoopy at CP still gets to me.
Perhaps share that thought before indulging in name calling and personal insults on this forum.
The wee man had to tolerate so much with little complaint – so why can’t you?
The printers strike was a blot on their history!!
jude 2005:
No politics or religion on CQN if you don’t mind…
Get well soon Danny McGrain.
A world class right back.
west wales celt
21:05 on 15 May, 2014
31003:
“west wales celt
Printers strike?….. When was that then?”
My point exactly comrade…
Sorry…my idea of a joke……never seen anything about it in the papers mind you….
Just watched Wee Oscar story on utv, tears flowing in our house; sleep tight wee man, 2nd star 2 the right & straight on til morning.
Our son will get an xtra big hug tonight
embramike
Ive got that cuddle saved forever!!
31003
I hear that those publications have good TV supplements, so I guess you may watch a lot of TV. Being a regular on here, of course, will ensure that you are kept well informed.
31003:
All good bud.
Old lefties are sensitive.
Can’t abide any Murdoch rag since the Wapping days…
ger57
Got me in one…….
Get well soon Dannybhoy a hoops legend
So who we signed then?
God, I hate the summer window!
Came into work and read a bit of the herald sport supplement someone had left. Comedy gold.
A quite from Easdale along the lines of…
‘In 140 years this club has already suffered one administration, I don’t think it could survive another one’
Where do we start with that one bhoys?
Interesting the use of the term ‘club’ and ignorance of the process ‘liquidation’
Did u all see Oscar pelt Paddy Barnes window snowballs? He was having great fun!!
http://www.youtube.com/watch?v=oVyxi7ypT4Y
embramike remembering wee oscar
How are you? enjoyed our chat on the way to Bar 67, hoping you still renew
pabloh:
Here’s hoping he at least got the “I don’t think it could survive’ bit right at least…
:-)
west wales celt
No probs old bhoy….
Not the slightest bit interested in politics……they’re all out for themselves……and here’s one for all the politicians on here…..I’ve NEVER voted in my life…..and I never will…..charlatans the LOT of them….
Hamburger SV still being held 0-0 at home to shamrock wearing Greuther Furth-wait till you see there home kit on Sunday -come on the German hoops
#
The printers refused to move with the times. Something like the car workers.
31003:
You need to get a bit more ‘Russell Brand’ (despite him having an ego the size of a Sally pasty and a striking likeness to much missed Greek ‘on – off’ footie players or Eurovision winners). Politics ain’t limited to voting. Its all in the transitional demand mate…
:-)
R R
Is it on TV??
Oscar Know a 5 year old boy from Belfast who really did make us all better people.
Whats the latest total on the appeal ?
Look the Other Way, because all sorts of financial spivs (just like Murray) will make money from running the club to ensure that there is still a ‘Rangers’ in Scottish football
jude:
what?
They should have gone quietly?
Zero hour contracts?
No overtime?
No sick pay?
Hire and fire at will?
Sh*te pay?
No job security?
etc, etc.
Yep, they really needed to get with the times…
Thank God we’re free from the enslavement of trade union power and are liberated to operate as free agents in a flexible workforce. Its so goddam good if I had another wee one I think I’d call him ‘trickle down’. He could be ‘Kojo’ for short. Dunno what I’d call a girl mind; serious problems…
Tax their bedrooms I tell ya…
I’m off, you can get back to mainstream safety.
Apologies for the ‘dinosaur intermission’…
martybhoy59
Good discussion. Remember it well, thanks – the discussion that is – the Bar67 bit is a tad hazy ! I have until next Friday to check down the back of the sofa ;-)
Was on bt sport finished 0-0 advantage the hoops -no loss hamburg
Embramike
good to have a brief chat in bar 67…
Sandman
That was posted wrong, I meant two games in a World Series both blue jay games, it was the Joe carter one think it was 92-93 one early nineties anyway, it was a great game, the unusual thing about that game was there was a triple play out in one of the innings and the 2nd and 3rd base umps. Missed it, and only gave a double out, it would have been the first triple out in a World Series ever, and on the TV replays it showed the umps. Missed it, but it was a tremendous high and a great evening, I’ll never forget it, craters home run made some kind of a record, but for the life of me I can’t remember what the stat was, I will look it up some where and find out.
TD
80%?
Decent start. Keep it up.
BMCW
Yup, getting there, slowly but surely, have to, I’m going to Canada in 3 weeks for my hols.
BMCUWP
You been in touch with Cowiebhoy? He is looking to catch up with you.
HH
CRC
embramike remembering wee Oscar
21:27 on
Remember and leave the key under the mat for the Euro game at Murrayfield so we can put up the CQN gazebo in your back garden ;)
WEST WALES CELT
You may be right,mate. Probably are.
But I had a similar argument wi my best mate thirty years ago,at the height of Thatcherism.
We don’t need Trades Unions anymore?
My backside. They are a requirement even now for the reasons you stated,and more.
Employers much have the upper hand at the moment-again.
And having the support of a TU means that you can insist your employer adheres to such employment law as is left.
Without them we would have a hire and fire free-for-all. A terms and conditions nightmare. And Health and Safety being blatantly ignored.
Nope,I’m with you on this one.
Fur those who wanna Know…
Scottish Under 17s Team
McCrorie
Wardrop Breslin(C)
Cameron , Thomson, Nesbitt,Wright
Miller, Jules,Ballantyne, Shephard.
Celtic Yoofs:
Wardrop, Breslin
Thomson Nesbitt n Miller.
Scottish Under 17s Subs:
MacKay, Lang ,Kelly,Whighton, Boyd, Hardie, McIlduff.
Celtic Yoofs: Boyd, McIduff
Boyd of Celtic, Has Subsequently, bin, Surprisingly,Released by the Club.
Kojo
Still Laughin
Seeya…
CELTICROLLERCOASTER
Mailed him last night.
I’ll contact him again.
Thanks,bud.
Has anyone got a link to the utv program about wee oscar