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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Craigellachie10 @ 22:12
We might not be playing at Murrayfield after all, it could take place at the BT Arena.
That me ‘off the hook’ then ;-)
Embramike
I think your Gazebo might be perfectly located for pre and post match refreshments for those attending the BT Arena.
As a fellow Embra resident I understand that the BT Arena is located in the west of the city close to the tram line. :)
blantyretim is praying for the Knox family
Am I due you an apology … or a drink ?
Rotherham 3 Preston North End 1 great football match. im lead to believe the Rotherham manager steve evans is a hoops fan
Neither o))
Craigellachie10 @ 22:12
We might not be playing at Murrayfield after all, it could take place at the BT Arena.
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As long as we don’t have to call in the ‘Receiver’
timbhoy2
22:36 on 15 May, 2014
Rotherham 3 Preston North End 1 great football match. im lead to believe the Rotherham manager steve evans is a hoops fan
He is an ex Trinity lad but that doesn’t necessarily mean he is a Tim. I am ashamed to say as an ex Trinity bhoy myself that Andy Walker went there too and look how he turned out!
Pog
No chance of that, we may be ringing the changes though if even half of the msm rumours were true.
eddieinkirkmichael
Back from USA 27th June – so you better have the gazebo finished. Floating sauna starts that weekend ;-)
Evans is a Tim Timbhoy.
Question Time: Caroline Flynt and Esther McVey. Sure beats an Eric Pickles and Michael Fabricant combo.
embramike remembering wee Oscar
22:43 on
Ah but does it have a retractable roof?
Caroline Flynt does it for me
craigellachie10
22:43 on 15 May, 2014
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If Kevjungle finds out he’ll be wanting to Dial ‘M’ for Murdo
A good “operator” who can “hold the line” while ” engineering” some decent “long distance” passes….
kicktheassootitcsc
Hmm,
Didn’t know Spitting Image dummies were still around. It even speaks like Pantsdown.
One of Gruether Furth’s old boys
CRC – Got the predictor winnings, Ta
HT’s team lost – as usual
Caroline and Esther now bickering.
Giving QT updates on CQN confirms I have no friends.
Pogmathonyahun aka Laird of the Smiles,
Hi, while catching up with CQN this afternoon after a short business trip, I saw your post from Tuesday evening at 21:00.
Please ask Paul for my email address and send me a mail, I would be only too happy to catch up with you for a couple of scoops of Kölsch. I’ve met a few fellow CQNer’s over the years and it’s always a pleasure.
If your daughter’s pal is managing in the new Primark she’ll be a busy lass. I knew a few of the Irish guys who were over here building the store and thought I would pop in for a look the other week when it opened, forget it, couldn’t get near the place for German shoppers queuing to try out the new Irish store in town.
El Chango is a god shout, been there on many occasions over the years.
We might have to employ the ole Craig Levein tactics and employ the old 118 formation.
Craigellachie10 @ 22:36
the BT Arena is located in the west of the city close to the tram line
Can see it out the window past the gazebo and over the golf course
HT are you watching question time? Good debate on education.
kolncelt,
I’ll get Paul to pass on your e-mail addy. Yep according to Jane they broke the Company record for an opening day. She’s been with them for a good few years but was based in Spain.
Where do you normally drink in Köln? Are you a Corkonian man or Barney Vallely’s or do prefer the Kölsch houses?
John O’Neil
22:58 on
Snap
JOHN O’NEILL
What? No jelly,mud or baked beans?
Not worth watching women fighting then…
pogmathonyahun aka laird of the smiles
23:00 on 15 May, 2014
We might have to employ the ole Craig Levein tactics and employ the old 118 formation.
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I see that some on the blog are accusing Craig Levein of tactical naïveté? Well, those people have short memories. Perhaps they should remember that Craig Levein was also a useless man manager and a petulant twat. ;-)
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS ………Praying for our WEE HERO!
23:12 on
You misogynist you ;)
Eddie
I am indeed.
PMTYH
I would be split between The Cork and Barney’s, originally a Barney’s regular I am now 50/50, I was on a stag weekend in Hamburg last weekend and the owners of both pubs were in the group, both of whom I regards as close personal friends, so I daren’t pick one pub against the other on a public forum.
BMCUWP
“Jelly, mud and baked beans”. Now why in hell did you no share that one before? That’s where I’ve been going wrong
kolncelt
23:15 on 15 May, 2014
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’Nuff said ;-) I’ve had good times in both pubs. The first time I was in the Corkonian was on the way back to Scotland from Italia ’90.
EDDIEINKIRKMICHAEL
Not me,mate. Just happy to keep them at arms-length nowadays.
They seem quite happy with the arrangement too,btw….
SENGA
Lay in the supplies for October!
If we can drag ourselves from the pub.
natknow
23:13 on 15 May, 2014
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I suppose that is a fair summation.
NATKNOW
He speaks very well of you too!
Off to bed ghuy and Ghurls, tomorrow is another day. Don’t waste it.
BMCUWP
It will be done my friend. D’s Mum is now in ta ta land and we had the priest in to do the Last Rites earlier. I couldn’t resist it, “Cup of tea Father”? I think he’d heard it before. take care
Greetings Bobby. Not got those videos. Do have one of Eric Pickles eating an entire pig for breakfast though. Good stuff.