Look the other way: fixed and floating charges


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.

Select Maiing Destination

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    I’m sorry to hear that,I hope D is coping.



    Please convey my best wishes,etc.



    I know you’ll be there when required.





    Disnae surprise me.



    Verging on cannibalism,mind.

  3. Pogmathonyahun aka Laird of the Smiles


    23:28 on


    15 May, 2014




    23:13 on 15 May, 2014




    I suppose that is a fair summation.







    23:30 on


    15 May, 2014





    He speaks very well of you too!







    I’m sure Craig has better thing to do than worry about the opinions of the internet bampots. Fix Hearts for a start. Not a small job then…

  5. Rwe 16.45 re the malaise at floating charge park


    – they personify lie built on lie.their ipo reeked of pheonixism but a compliant media awaited instruction and still do today imo.you look thro


    their interim reports and they talk of continuity and history before they even came into being!! RIFC interims of 27th march talks of club formed in 1872 tho a wee 9 minute meeting on 14th june 2012 contradicts that


    To me its layered fraud (my opinion only)


    Given societal credence by various accountancy firms.The media then take this established establishment behaviour


    and make it your good old wholesome everyday lie.


    I disagree that tone has changed in the media my friend.try bringing up the glib and shameless liar their reaction is as swift tho you asked why chunky green was in east Belfast-both callers cut of.


    The other thing is they are in compliance mode at mo awaiting the full co ordinated attack with sky if they(are about) get promoted next year-rupert wants his big buck fixture back and truth and the soul of the game and fans/customers can go f…




    hope your well


    Always in Celtic


    An t

  6. All’s well Bobby and your wishes are conveyed and very much appreciated.


    A wee bit of anguish and a hell of a lot of laughter, my Mum in law is just like a lot of Mums, magic but embarrassing at times. It’s just lovely to see them together, our wonderful carers doing everything they can to make Marie and people like her go as comfortably and painlessly as possible.



    Anyway, nuff off that, you take care Bro and enjoy the rest of your holiday, sanding what sanding?

  7. Hamilton Tim 21.19


    Simplicity in a sentence mhate.beautiful.


    Thanks for being there on monday.


    He did indeed make us better


    He does continue to do so.



  8. A Ceiler Gonof Rust on

    An Tearmann. green’s visit to Belfast was nothing short of sinister. The company he kept there must have been made known to him from within base station mordor. Which makes it even more contrived and sinister.



    I hope the whole lot of these corrupt shites rot in hell.



    Anyway, how you doing big fella. My neck’s still sore from contorting myself to converse with you. It was a pleasure to meet you last weekend.




    Hail Hail bruv.

  9. Bmcuw how is your tour going? You still out on tare lol good puttin name to a face



  10. Richie #TeamOscarForever on




    At least we were sitting doon in the hotel. Standing in the pub earlier was a challenge ;-)

  11. Acgr yeh you and I know that but the illusion o truth for the gullible means no questions asked if gullible and we are squinted at yon glary way when we gently pose the queation lol


    Anyways did ye make brekki on sun ha



  12. GuyFawkesaforeverhero on

    Congratulations to Scotland Under17’s, playing their way out of the round-robin stage.



    Not sure what Joe at VideoCelts has been drinking in his excitement, but our semi-final is against the Dutch.



    England will be knocked out by Portugal in the second semi-final.

  13. Did you get your op Richie? Hope it went well.knees eh



    ACGR at one point ma neck was cricked in bar67 qhen yi stood on chair haha


    Great meeting and puttin names to faces


    I haver tae lol



  14. macanbheatha Oscar Abú on

    30 years ago today l buried my aul Da.l say “aul” he was 64. 6 hours later I was back in the Kesh .


    Seamus Mac An Bheatha laochra Gaeil

  15. Guyfawkesforeverahero



    The 17s done great the Dutch will be real tough opponents, I do believe the beat england well, but its a euro semi so go for it.i read earlier 6 of our young lhads are in that squad



  16. Celticrollercoaster luvs his luminious lime boots


    00:15 on


    16 May, 2014


    Be prepared. A legend beckons!








    Ya wee eejit CRC ,have to wait for my tears to dry before I go to my bed,my missus


    thinking I’m a right woose this weather.hh nn tc




  17. A Ceiler Gonof Rust on

    CRC, I just watched the link you posted to the programme about Oscar. I’ve got tears all down my shirt and all over my keyboard.



    Keep up the good work and lets not let another family go through what Oscar and his family did.



    Hail Hail bruv




    Back in ten once I’ve poured a very special dram to the wee man and blown my nose:-).

  18. Macanbheatha oscar abu


    Time does not make sense at times my friend my own da will be 33 years next month but his wisdom still makes me smile.


    Glass raised



  19. GuyFawkesaforeverhero on

    An Tearmann





    Fair comment, sir thanks. Seven Celts are in the squad.



    Honestly, both England and Netherlands players look like an Under21 team.



    My Celtic paranoid antenna has been reverberating in defence of our guys since game one.





    Travel home safely DMcG. You have the prayers and good wishes of Celts everywhere.

  20. A Ceiler Gonof Rust on

    1964 Glenburgie (the last of it) raised and swallied in honour of Steve, Leona, Izzie and our little star.




  21. A Ceiler Gonof Rust on

    Why when we have a major BT shark on our board did the SRU get the chance to pocket £20 million in stadium naming? FFS, within 12 seconds you could come up with “the bt paradise arena……………….etc.



    The huns are all over this btw, funeral directorsall over the country are clamouring for the naming rights for the red brick lavy for their next act.



    Our board are taking their eye of the ball…………………and the balance sheet.




    Get yer finger oot Peter Lawwell.

  22. An tearmann



    Just popped back in afore beebaws and saw you post.



    Despite all their flim flam and compliant agencies… my American football analogy stands up (IMHO)



    Wallace bought himself and Newco some time by announcing that he would conduct a review and announce the results in 120 days. He didn’t need 120 days to know what the story was, but instead of things being better after 120 days, things are worse. Season ticket sales are compromised by the work of the “glib and shameless liar” and their annual report was a complete acknowledgement of their dire straits that has been accepted in the rest of the world for months.



    He punted on 4th and long and now has to punt on 4th and long from his own 2 yard line with 1 second left on the clock.



    Lovely and entirely deserved.



    As for the media I am lucky enough to be able to easily avoid the SSB et al.




  23. Cheque the lyrics.



    And, I’m in no way attacking Kojo, when I imitate him……. oh wait?



    There are a lot bigger forces oot there than just what is happenin’ in this little bubble, as the Aphex Twin would call it, an Analogue Bubblebath.



    OoH Up the Brilliant SamaRA’s.



    A big mistake letting go such a guy that has such a Genuine Love for Celtic, hard nosed business decision, I can understand that, but that person is the Ultimate Role Model of a team player. He was willing to let others develop and would never moan if he was sidelined.


    Samaras, one of Celtic’s Greatest ever IMO.

  24. FFM – I’m the only conspiracy theorist in the village)



    03:02 on 16 May, 2014



    Evening all,



    Just poppin in to say, while howling at the moon and those who might or might not have landed on it, and being mental for realising that the MSM in its hundreds of years should be given no more trust than any internet bampot….








    As long as you take David Icke from the standpoint he is coming from, then his stuff is indeed well worth looking into. It makes a lot more sense then and indeed is Enlightening. :))



    As you know, FFM, He is heavily influenced by the Theos, like Hitler and so many others.



    You need to strip back the layers sometimes, maist are not interested.



    Eckhart – not much difference in thinking between Tolle and Dietrich, New Age, aye right, it is the same old lie.



    off oot.

  25. edit



    As you know, FFM, He is heavily influenced by the Theos, like Hitler was, and so many others.



    Apologies, I dinnae want to cause another pointless argument.