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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    GOOOOOOOOOOOOODMORNING to you too,big fella.



    You on babysitting duties later?



    And you love it….

  2. moonbeams wd. wee oscar’s our bhoy and kano’s our mhan.



    10:08 on 16 May, 2014





    Minor ailment! Couple of days in Sufferring Testicles. Kidney Stone passed. Ooooot Nooo.



    Back to being human.



    So let’s no take oor the blog. :-)))



    Hail! Hail!



    MWD says Aye





    Luckily enough I’m suffering the same at present…… hope they pass soon!



    I say luckily as I feared the big Prostate C problem. Google searches can be frightening at times.



    Still excruciatingly painful though.

  3. pedrocaravanachio67 on

    Dear o dear



    “We thought long and hard about allowing them to have a serialisation. We thought we should do so as we need to reach the supporters who aren’t online.”



    Stringer bell


    I’m with you on this one. Don’t buy the DR, those nasty msm journalist!!!


    Oh wait a minute there’s an ex player needin some exposure for his new book……


    “Thugs and thieves” anyone??


    Aff oot.

  4. See the Huns are already defacing The Celtic Way, the letters were stolen overnight from the entrance sign.

  5. robinbhoy



    10:26 on 16 May, 2014


    See the Huns are already defacing The Celtic Way, the letters were stolen overnight from the entrance sign.





    No CCTV??



    Or just demand to know their names!

  6. leftclicktic We are all Neil Lennon on

    macanbheatha Oscar Abú


    Today I know my Da is smiling down on me.








    10:16 on 16 May, 2014







    GOOOOOOOOOOOOODMORNING to you too,big fella.



    You on babysitting duties later?



    And you love it….


    Wee Mhan into nursery at pm “crazy hair” day,for fund.


    Yesterday as a last resort they sent me for the tins of coulored hair spray, with the specific instructions


    “Remember he is not going in Tri-coulour heided AGAIN” :))))))))





    Nothing wrong wi a tricoloured heid.



    Mine is a lovely brown,grey,and white.



    Not necessarily in that order,btw…

  8. Joe Filippis Haircut on

    Robin Bhoy. Unless you know for certain who stole the sign and if you do you should inform the authorities.As I suspect it is just an attempt at humour it makes you just like a hun making accusations without any knowledge I always hoped Celtic supporters were better than that. H.H.

  9. Anyone who read my wee rant about Turkey the other day,take a look at Sky News.While ordering 3 days of national mourning,the maniac who is running the country,then proceeds to tear gas,water cannon,baton,peaceful protesters,all over the country.His personal bodyguard filmed kicking,and stamping on some unfortunate.His speech to the nation,something like”Dont know why people are so upset,this kind of thing happens everywhere”.


    This is a guy our government holds in high esteem,and has supported their attempts to join the EU.








    To be fair,I doubt anyone from the club will state that fans of another club were responsible.



    We do not define ourselves by hiring a bus!

  11. RobinBhoy


    10:26 on


    16 May, 2014


    See the Huns are already defacing The Celtic Way, the letters were stolen overnight from the entrance sign.



    Sleekit will find out the names of those responsible.


    I think!!!!!!!.

  12. JFH



    I think we can safely assume that Celtic supporters would not deface the Celtic Way.



    I have personal experience of Huns slashing all four of my tyres when parking close to Celtic Park on a European night a few years ago and then laughing at myself and Mrs RobinBhoy as we waited for the RAC pick up truck to take us back to Ayrshire.



    Lets see what the police investigation brings, nowt would be my best guess!

  13. ....PFayr supports WeeOscar on




    What happened Sepp…cheque bounced



    Serialising any CFC matter in the DR……poor form ….that rag is anti CFC to core …encouraging CFC fans to buy it is funding the enemy

  14. Whilst we are all told by all and sundry on here not to buy the DR,it seems odd to me that we find no fault in ex players taking the DR money to publicize their latest book.In fact we grant them an audience with CQN.Funny how this ex player has told the DR some unsavoury stories about Big Jock.Nothing like tittle tattle to wet the appetite.


    I will not be reading any of his article on here later.Instead I might spend the afternoon reading the DR and the Sun.Crap is crap,no matter how you bind it.

  15. ....PFayr supports WeeOscar on




    Prevalent doon ole Govan way ….particularly on match days

  16. bournesouprecipe on




    Hot Sevconian sweaty big smelly hoose must stay open match days:-)

  17. Taurangabhoy on

    Thin ice bhoys, a street sign that says Celtic Way would be something Celtic fans might fancy too. As a wedding present some of the lads back home went for a 3 a.m walk up the back roads in my toon to get the last original solid steel “Welcome to ” street sign. They packaged it up with a custom note saying “work of art”. A few bits of klassic graffiti sure but hardly a banksy. Saying that it goes where I go. You can take the boy out of….



    Must be some really bad news coming from Mordor going by the number of priest and Irish slavery news items in the DR over the last week. The further they have sunk the lower that rag goes, gutter press is a big step up from the daily rangers. It is gonna be bad. I can feel my face and belly aching already. The suspense. Naebody will be buying the pies next season.

  18. Joe Filippis Haircut on

    RobinBhoy. I agree lets wait and see what the closed circuit TV shows up and what the police find then we may know who took the sign. H.H.

  19. Phelim Brady on

    A big thank you to the CQN book guys!



    I needed a book from the CQN Bookstore in a hurry so I sent an eMail last night at 9:30pm – Got an eMail back this morning at 9:30am telling me the book was in the post.



    How about that for a quick turnaround? Much appreciated guys, you got me out of a tight spot. :-)

  20. ....PFayr supports WeeOscar on




    Sounds awful



    My mate had a similar experience



    However, all the sympathy in the world won’t let me buy that six inches craic ……not unless you put it back in and passed it twice :-))

  21. TBJ says Wee Oscar Knox is in heaven with the angels on

    Lazy journalism is the mark of the SMSM



    I will never buy a newspaper again here in Scotland . No matter who they are writing stories about



    So obviously I think it’s wrong for any Celt to give them stones to throw at us while making money from gullible Tim’s who buy the rags

  22. Joe Filippis Haircut on

    PFayr. Kidney stones can be very large my left kidney turned to solid stone and there was nothing the Docs could do other than remove it which they did.I would think it is very possible to pass quite large stones and it will be absolute agony. H.H.

  23. Moonbeams WD. Wee Oscar’s our Bhoy and Kano’s our mhan.




    10:56 on 16 May, 2014







    Not much fun. At least this time I was morphined to the hilt when I passed my latest stone. 2 I passed in January I literally had to stand and squeeze out the last 6 inches (shoooosshhh at the back). :-)







    Too much information buddy! :-)



    Hope you and desertbhoy are feeling better soon. Sounds dreadful. Puts my (rather tame) hangover into perspective.



    Get well soon, both.

  24. moonbeams wd. wee oscar’s our bhoy and kano’s our mhan.



    10:56 on 16 May, 2014





    Not much fun. At least this time I was morphined to the hilt when I passed my latest stone. 2 I passed in January I literally had to stand and squeeze out the last 6 inches (shoooosshhh at the back). :-)








    Shoulda used the suction device, much more pleasurable.



    Saying that, awaiting my current batch to flow through, unhindered I hope.



    Probably the single malts help reduce the pain.