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Look the other way: fixed and floating charges

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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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772 Comments

  1. Petec,

     

     

    Sammy didn’t want to leave.

     

     

    According to the press releases from CFC, every player that has left Celtic in the last 5 years has left due to their own self-interest. Funny to see how so many here can’t wait to put the boot in to Hooper, VW, JL etc etc for apparently turning their back on Celtic, yet the same crowd are undoubtedly the same ones who will defend the Celtic Board against the evil Board Bashers, who apparently are infiltrating every Celtic Site with nefarious intentions blah de feckin blah blah.

     

     

    I’m with those who can think for themselves. Such folk are the ones on this site who keep their own opinions and make discussion interesting. I do include myself in that category. And yoursef. And for nightshift talk, Macjay. But I don’t want to create a list of those that don’t. Such a list that excludes others would only be what such a-holes want.

     

     

     

    I’m assuming that every youth arrested due to collaboration between the polis and the board have only their own self-interest to blame as well.

     

     

    Interesting to see who cares about this issue – doesn’t seem to important here on CQN.

  2. I was Moonhowlin’ back in the olde day.

     

     

    Spooky about Apollo.

     

     

    Apollyon and all that, I wonder what the name really means?

     

     

    Full of Ecstacy tablets, warned not to take by the Establishment, the Societal Engineers urnae daft at all.

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

     

     

    03:34 on 16 May, 2014

     

     

    Petec,

     

     

    Sammy didn’t want to leave.

     

     

    According to the press releases from CFC, every player that has left Celtic in the last 5 years has left due to their own self-interest. Funny to see how so many here can’t wait to put the boot in to Hooper, VW, JL etc etc for apparently turning their back on Celtic, yet the same crowd are undoubtedly the same ones who will defend the Celtic Board against the evil Board Bashers, who apparently are infiltrating every Celtic Site with nefarious intentions blah de feckin blah blah.

     

     

    I’m with those who can think for themselves. Such folk are the ones on this site who keep their own opinions and make discussion interesting. I do include myself in that category. And yoursef. And for nightshift talk, Macjay. But I don’t want to create a list of those that don’t. Such a list that excludes others would only be what such a-holes want.

     

     

    I’m assuming that every youth arrested due to collaboration between the polis and the board have only their own self-interest to blame as well.

     

     

    Interesting to see who cares about this issue – doesn’t seem to important here on CQN.

     

    _________________________________________________________

     

     

    I am not sure I agree with awe of that…I will agree with most of it but a few have likely wanted to use Celtic as a stepping stone and Celtic have marketed the moves in such a way to EVEN get these Great players to join such a poor League, things are gettin’ better, the nefarious ones are being positioned to where they should be, I think at least.

     

     

    And hopefully the Scottish League will become vibrant again. Keep the Faith Bro.

     

     

    You probably know my feelings, we are at the very end of days and I’m unlikely to see retirement, I Truly Believe that Celtic are Blessed. Celtic isnae the Board, it is the Support, it is something a lot deeper than that though. I could have played the Fred C track but I think on this occasion, no track is required.

     

     

    Celtic

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

     

     

    03:37 on 16 May, 2014

     

     

    Pedro,

     

     

    Influenced by the Theosophists is news to me? Very important point if accurate?

     

    ___________________________________

     

     

    Hitler or Icke?

  5. FFM,

     

     

    Hitler was influenced heavily by Madame BlaVatSKY, her main book, I had it on an olde computer but realised I had to delete it, don’t ask me why, or how, I was trying to be open minded. Her writings were Channelled from the Spirit World, so Never ever go there, noone knows what EVIL lurks there. It is interesting that the Air Prince is likely, och.

     

     

    He is the ruler of this World and is working overtime with his minions but God, oh my God, he is getting more incredible by every second I am alive on this planet.

     

     

    Nice comments frae Roger at the end.

  6. You know I know about Hitler, but Icke’s relationship with the evil fecker is news to me :)) I don’t buy the stuff about Icke being an Illuminati plant or other stuff. He’s just telling it like it is the way a good journalist should.

     

     

    The lizard person stuff is either true or a well-calculated maneouvre to protect himself. :))

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

     

     

    04:12 on 16 May, 2014

     

     

    You know I know about Hitler, but Icke’s relationship with the evil fecker is news to me :)) I don’t buy the stuff about Icke being an Illuminati plant or other stuff. He’s just telling it like it is the way a good journalist should.

     

     

    The lizard person stuff is either true or a well-calculated maneouvre to protect himself. :))

     

    ______________________________________________

     

     

    Please read correctly, ye drinking again… tut tut, me too btw.

     

    There are no ties between Icke and Hitler.

     

     

    The ties are between the influenza.

  8. Petec,

     

     

    This might be the page you’re looking for re Theosophy and H.Blavatsky.

     

     

    http://www.theosociety.org/pasadena/sd/sd1-1-04.htm

     

     

    The “Secret Doctrine” belittles Christ and hails Lucifer as the saviour of mankind through enlightenment.

     

     

    Theosophy is a prevalent doctrine in current times with offices throughout the States and the UK, with UK and US politicians and actors included in its large membership.

     

     

    I’ve said it here before, and don’t know what else I can say about it now – well, except that Hitler used it as the inspiration for his Mein Kampf.

     

     

    And that Crowley and freemasonry had a good penile tug over it all too.

     

     

    Whit a world, eh :)

  9. Mark,

     

     

    I don’t know what to say.

     

     

    I have so much to say.

     

     

    The Panopticon will make sure I wullnae say much.

     

     

    Free?

     

     

    FFS dinn AE? make me laugh.

     

     

    “We got a prescription” for YOU!!!!

     

     

    Up the Fcuking Kojo revolt.

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

     

     

    04:24 on 16 May, 2014

     

     

    Pedro,

     

     

    Don’t see any ties with Icke and Theosophy. Happy to be corrected though. Well not really ! That would be VERY disappointing. I won’t rule it out though, as we live in a strange place indeed :))

     

    ______________________________

     

     

    7 rays and Alice Bailey, Punch them gerrintaethem.

  11. So Tommy Gemmell follows Willie Wallace and John Hughes in being highly critical of Jock Stein, and in the Daily Record of all places. Well, it’s easy to go where the money is.

     

     

    It’s all too easy to dig the dirt on someone who is not able to defend himself, and why now? Because these guys know the SMSM will jump at any opportunity to put the boot into Celtic FC through club legends or current players, and all the better if it comes from former legends themselves.

     

     

    As for Gemmell’s latest gripe, all I’ll say is this.

     

     

    If a player is under contract to a club, and another club contacts the club and enquires about buying said player, the club is under no obligation to even tell the player that an enquiry has been made, even if the player has lodged a formal transfer request.

     

     

    So Jock Stein was doing his job in not letting Gemmell know of every enquiry, if the club was not interested in selling.

     

     

    As for the Barcelona bid? Again I ask, why are we only hearing about that now? Pure fantasy and anything to sell copy.

     

     

    So who will be the next Lisbon Lion to kick the late great Mr Stein?

     

     

    Maybe it’s time we started moving on and confining the Lisbon Lions to history. We always complain about the English going on and on about 1966. Well 1967 was only one year later and we never stop mentioning it at every opportunity.

     

     

    I only say this because I don’t want the memory of the Lions to be soiled, and that is what is beginning to happen with this series of money-making revelations about a man who made Celtic what it is today.

     

     

    Jimmy Johnstone had plenty of stories to tell the world about Mr Stein, but mostly about the boss tearing his hair out trying to keep the wee man under control. He never resorted to controversy and if any Lion needed the filthy lucre, Junky did.

     

     

    Big Billy would never dream of being nasty about the big man. I am sure he would rather gouge his eyes out than to take money for such a venture.

     

     

    It really saddens me to write this, but when I saw the Record’s online headline, I was sad, disappointed and absolutely livid.

  12. Not a massive fan of GH, I always preferred AS.

     

     

    But he was great goal scorer for us.

     

     

    He has the animosity of the Celtic Support because we were told he craved an England call-up.

     

     

    Yet a close pal of Kris?

     

     

    How much did he make for the spread-sheet?

     

     

    I think some folk need to realise that the spread-sheet calls the shots, and not the players.

     

     

    I resent seeing comments like, I paraphrase, “Feck you, you left us to play in the English Championship”.

     

     

    I say, no. They were off-loaded to save or make money for the shareholders.

     

     

    http://www.youtube.com/watch?v=-aVcV6lhS74

  13. Gold Coast Tom

     

     

    04:47 on 16 May, 2014

     

     

    So Tommy Gemmell follows Willie Wallace and John Hughes in being highly critical of Jock Stein, and in the Daily Record of all places. Well, it’s easy to go where the money is.

     

     

    It’s all too easy to dig the dirt on someone who is not able to defend himself, and why now? Because these guys know the SMSM will jump at any opportunity to put the boot into Celtic FC through club legends or current players, and all the better if it comes from former legends themselves.

     

     

    As for Gemmell’s latest gripe, all I’ll say is this.

     

     

    If a player is under contract to a club, and another club contacts the club and enquires about buying said player, the club is under no obligation to even tell the player that an enquiry has been made, even if the player has lodged a formal transfer request.

     

     

    So Jock Stein was doing his job in not letting Gemmell know of every enquiry, if the club was not interested in selling.

     

     

    As for the Barcelona bid? Again I ask, why are we only hearing about that now? Pure fantasy and anything to sell copy.

     

     

    So who will be the next Lisbon Lion to kick the late great Mr Stein?

     

     

    Maybe it’s time we started moving on and confining the Lisbon Lions to history. We always complain about the English going on and on about 1966. Well 1967 was only one year later and we never stop mentioning it at every opportunity.

     

     

    I only say this because I don’t want the memory of the Lions to be soiled, and that is what is beginning to happen with this series of money-making revelations about a man who made Celtic what it is today.

     

     

    Jimmy Johnstone had plenty of stories to tell the world about Mr Stein, but mostly about the boss tearing his hair out trying to keep the wee man under control. He never resorted to controversy and if any Lion needed the filthy lucre, Junky did.

     

     

    Big Billy would never dream of being nasty about the big man. I am sure he would rather gouge his eyes out than to take money for such a venture.

     

     

    It really saddens me to write this, but when I saw the Record’s online headline, I was sad, disappointed and absolutely livid.

     

    ________________________________________________

     

     

    When Juve, were allowed to do, what they done at Celtic Park, when the optimism was so high. A lot of people realised that Celtic, Globally unsurpassed but up against the biggest challenges ever.

     

     

    I dinnae want us going anywhere. Let us show them all. The dark force has been defeated, let Scotland Flourish.

  14. Gold Coast Tom

     

     

    05:11 on 16 May, 2014

     

     

    petec –

     

     

    Sorry, but I haven’t a clue what that comment is about, far less why you copied and pasted my comment above it.

     

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

     

     

    Apologies, I was kind of praising your comment.

     

     

    Hey h()

  15. GCT,

     

     

    When you come back to Scotland, be careful how you question what someone says.

     

     

    If you describe it as pish, it’s bullying, and when you say, “Sorry, but I haven’t a clue what that comment is about, far less why you copied and pasted my comment above it” it translates the same way.

     

     

    Although I told TD67 this once, less than you have to Petec. Yet you call me a bully? If only God gave us the gift to see us as others see us, eh?

     

     

    One thing I’ll say about Petec – he has my respect.

  16. FFM –

     

     

    So according to you, if I politely tell someone I don’t understand the point he is making, it is the same as telling him he is “talking pish”?

     

     

    All I can say is, you said, it. I certainly didn’t.

     

     

    I think you owe petec an apology.

  17. FFM524

     

     

    I’m here for the next 24 hours.

     

     

    I’m going to engage Kojo.

     

     

    feel free to phone for a gibber.

     

     

    I love Kojo’s mind, it is very good, almost transhumanist.

     

     

    Humblism is a Religion not yet co-opted by the New Age.

  18. GCT,

     

     

    Usual disappearing act? Pathetic.

     

     

    You’re attitude to Petec has been disgusting – he’s too much of a gentle soul to rise to it. So when I pick you up on it, you try to defamate my name by calling me a bully.

     

     

    Mask slipped? I’ve got you sussed well.

     

     

    And until you apologise, I won’t be letting it go.

     

     

    Take that to the bank.

  19. Gold Coast Tom

     

     

    05:35 on 16 May, 2014

     

     

    FFM –

     

     

    So according to you, if I politely tell someone I don’t understand the point he is making, it is the same as telling him he is “talking pish”?

     

     

    All I can say is, you said, it. I certainly didn’t.

     

     

    I think you owe petec an apology.

     

    ______________________________

     

     

    Mark, Will never, ever, have to apologise to me. Apologies for using your real name.

  20. GCT @ 05:35,

     

     

    Well that’s a first. I retract my post at 05:37.

     

     

    Yer MSM skills kick in well at times, don’t they.

     

     

    I am right? You did work for the rags at one point? Or were you a “journalist”?

     

     

    It’s a bit confusing, because you reference the Dunblane tragedy and discussed a Masonic cover up, then in the same breath, actively ridiculed conspiracy theories in general. The sure sign of an MSM journo.

     

     

    Don’t talk to me about owing Petec an apology. You’re behaviour a couple of weeks ago was poor stuff.

     

     

    Tom, I find you sinister.

  21. FFM –

     

     

    Disappearing act?

     

     

    How does responding to your post constitute disappearing?

     

     

    Defamate? :-)

     

     

    You’re losing it wee man.

  22. Mountblow tim praying for wee Oscar and family on

    Good Morning CQN

     

     

    Get well soon Danny Bhoy

     

     

    Hail Hail

  23. Dunblane?

     

     

    A journo?

     

     

    Masonic cover-up?

     

     

    All because I said I didn’t understand what petec’s comment was about?

     

     

    I don’t have a clue what your problem is with me. I didn’t address you, I addressed petec. I wasn’t rude. I was polite. You chose to butt in and twist my words into some form of aggression which simply wasn’t there.

     

     

    Give it a rest. You are a crushing bore.

  24. GCT…

     

     

    Don’t get too upset… I don’t think the bhoys are doing anything other than placing their thoughts and personal experiences on record. Nobody is perfect, not Big Jock, not these bhoys!

     

     

    To be fair to Yogi most of what he has written he has consistently stated for many years and was known to most people of the generation who saw his career. (Much like the belief/knowledge that for a time Wee Bertie wouldn’t pass to him lol). He also acknowledges his debt to Jock in improving him as a player and for providing a career of success.

     

     

    Again much of the TG fallout was (unusually for that era) well aired in the media at the time. TG may have been proud of his sending off but the Club sure wasnt and were embarrassed by the nature of the event and its harking back to similar from the Racing Club game which was still a sore. The Barca/Spurs links are new to me admittedly but my recollection of that period was that despite the fallout Celtic and Jock in particular wanted TG to stay and the support thought the same. I’m glad to see TG state, in the same DR piece that he loved and still loves his memories of the Big Man.

     

     

    I can’t comment on WW’s piece because I haven’t read it!

     

     

    I do sympathise with your observation about Jock not being able to respond. I bet he could tell a few about them!!!

     

     

    Don’t know if you ever saw a documentary by Hugh McIlvanney about the three managers, Busby, Stein & Shankley but I recall more than one story about difficulties and fallouts players had usually over money, testimonials and downright lies/deceptions. It was how management sometimes worked then and probably still does now!

     

     

    Personally I prefer to know my heroes as men/women as real human beings and not idols. The imperfections and failings add to rather than diminish the achievements.

     

     

    I enjoy biographies very much but autobiography needs treated more cynically…the stave in ones eye and all that…

     

     

    That these commentaries have followed on from each other magnifies the effect of apparently ‘doing a job’ on the Big Man but if we keep encouraging the bhoys to tell their stories…

     

     

    Anyway sorry for the ramble and telling you things you probably know well enough.

     

     

    HH