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.
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west wales celt
21:24 on 15 May, 2014
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…
——————-
The Times sounds like a good paper to work for then :)
W W C
Thats the nd of that debate.
I worked in the Caterpillar for a few years and I cld count on one hand how many times I had a full weeks wage. If sumdae’s fart smelt wrong we were out on the street and straight into the clubs across the road.
Gazebo – did you say
Employers have too much power nowadays,(caused in part by bad practices from unions)
without the union being on the workers sides there would be even more zero hour contracts and staff being removed at the drop of a hat…
Jude
How did they define a “wrong ” smelly f@rt ?
I see what you mean about Greuther Furth just became my favourite German side until the weekend at least!
BT
You know my past .. And my current occupation
So I see things from both sides
Got to say the union in our place ( national level) are clearly in cahoots with the company . Dodgy deals all the time
The local full time official never interested in real issues but was allowed to come in and win appeals to reinstate wasters
So who’s to blame ?
Thatcher
bt
I agree with all you say. At the lunch break in the Cat guys wd have 3 or 4 pints at lunch and come back and work heavy machinery.
Unbelievable!!!
TBJ
aye, she is…
TBJ
Kinda wet??? <:0)
Kojo
Complete list of Academy boys released according to official news release
Patrik Twardzik, Michael Miller, Lewis Kidd, Paddy McNally, Jack Kirwan, Sean McIntosh, Steven Boyd, Aaron Comrie and Connor McLaren will exit Paradise once their contracts expire.
The youngsters were part of the Development Squad and the Under-17s, helping both teams achieve significant success over the past 12 months.
BT
My walking compass how are you today?
Morrisons 18 stella 10 quid
Love
Jude
the smelly farts would be due to the 4 guinness…8)
Night all
New malt to sipp.
Night wee Oscar my hero God bless x x
Hat trick?? mmmmmmmmmmm
Soal
howd it go?
Out of bed today but 10 bags of stones for front later and naka’d again…
good deal, get mrs bt onto it…
One smart fellow, he felt smart
Two smart fellows, they felt smart
Thre smart fellows they felt smart
And they all smelt fart together……
Damn damn damn…..always get the last line wrong….ahm away tae practice…
TBJ says Wee Oscar Knox is in heaven with the angels
21:58 on 15 May, 2014
Sounds like self interest has taken over the morals. I’m afraid I have seen this many times. Corruption breeds in many ways and forms
HH
CRC
BT
What the long walk with added greenfly
LOL
South Of Tunis 17:18 on 15 May, 2014
Amazing Snakeheads remind me of The Redskins, a band I was well into back in the md-80s – good lads, politically sound and their music was superb. Another influence appears to be he Glitter Band. The drums in some of the songs reminded me of that sound. They actually came on to Rock & Roll Part 1, which was quite funny.
They have bags of attitude, the tops were off and they were goading the audience a wee bit, tongue in cheek, but I liked it.
Just dipping in, so more importantly all the best to Danny McGrain. He’s has to deal with much adversity, I’m sure he overcome this setback as well.
Soal
if you had listened to my drug filled directions you would have had no problem…
Right….
One fart smellow………aw ffs…….
Right guys, since naebody wants tae talk, ma back is gubbed after a heavy day in the garden and the outside verge (check for the truth from from BMCUW’s) . Cot time early for me, cos I am in absolute agony wi the ole back. The early night will do me the world of good. Still in agony. Hey ho. KTF :-))
Weefra HH praying to Wee Oscar.
Weefra
need some opiates.
It wil pass my friend..
Crc
We had an employee suffer a bad accident at work .
I asked the union rep what his opinion was of the root cause and how the employee was as she was in hospital
His answer … She’s not a union member so I don’t know or care
Oh, meant to say, Night Night Timland.
Weefra HH praying to Wee Oscar.
BT
Bear Grylls would be dead if he followed your directions
Love
BT
:-))
Weefra HH praying to Wee Oscar.
We might not be playing at Murrayfield after all, it could take place at the BT Arena.
TBJ says Wee Oscar Knox is in heaven with the angels
22:10 on 15 May, 2014
I am sure that is not representative, but indeed very disturbing.
I hope the injured individual is well and the hazard has been removed to avoid future risk.
HH
CRC
Why do I keep forgetting to take my memory improvement tablet?
Weefra
Need a good massage, me thinks! :-)
I understand Mrs Weefra warming up those hot coals as we speak
HH
CRC
Was at a funeral this morning.
Funeral director driver took 3 hours driving round the cemetery.
Think he’d lost the plot :)))
Aff oot !
Crc
Usdaw … Or … Usdim as I call them
If brains were made of dynamite they couldn’t blow their noses .
But that’s exactly what the company want as Union reps .
I advised the engineers who work for me to join the engineering union as they are not being represented by the jokers union.
One department gets their workers to stay late when needed then sends them home early later in the week to avoid paying premium rates for the extra hours worked earlier .
I wouldn’t agree to that and would refuse to ask my guys to do that
Tbj
whatsinitfurme…….
thats what they are all about……..
Anyone else really really worried about the CL qualifiers?
Dearie me, it looks like the Ukraine have annexed Russia:
Virgil van Dijk wanted by Dynamo Moscow
Celtic defender Virgil van Dijk, who was shortlisted for the Scottish player of the year, is being weighed up for a summer move to the Ukrainian side in a move thought to be in the region of £8million, according to The Scotsman.
More pre-transfer window, made up, pish on a daily basis coming to a media website near you.