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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. minx1888 praying to Wee Oscar on

    H/Tim- RICE

     

     

    Rest

     

     

    Ice

     

     

    Compression

     

     

    Elevation

     

     

    – get your leg up on the couch, get some frozen peas out of the freezer cabinet, wrap them in a tea towel and press them against the painful area.

     

     

    Get hold of some ibuprofen [ assuming you can take it] ; say 400mg three or four times a day, after meals.

     

    —–

     

    Thanks DBBIA!!

     

    Couldn’t you just have recommend the man up approach?

  2. Joe Filippis Haircut on

    desertbhoy. Sure doesnt look like I have nothing unusual in that though.lol. H.H.

  3. blantyretim is praying for the Knox family on

    tuaranga

     

    nothing to do with the bhoys in pain or the Celtic way…..8-)

  4. Billy Bhoy 05 on

    MWD

     

     

    Have you tried Lithotripsy that uses shock waves that break up kidney stones? Worked for me

  5. Get well soon also to Hamtilton!

     

     

    Sounds like you’re already getting all the sympathy you need! ;-)))

  6. Big Tam should have got the Catholic Observer to serialise his memories.

     

     

    I might just have bought it. But not the dr.

     

     

    It always amazes me these guys come out with books 40 odd years after the events and publish them as factual.

     

     

    I canny remember what I was doing this time last feckin’ week never mind in the 60’s and 70’s!

     

     

    What day did you say it was?

  7. minx1888 praying to Wee Oscar on

    I find it hard to take all this back stabbing of Big Jock! Is that the only way to promote the book? To sell a story to the lowest of low about a man who is no longer here to defend himself! Just to give them more negative stories about our club

     

     

    Sorry it just doesn’t sit easy with me at all.

     

     

    I have no doubt the rest of the book will be great filled with great memories just a shame we won’t see any positive headlines!

  8. blantyretim is praying for the Knox family on

    Philbhoy

     

    I used to deliver the catholc observer, irish weekly and the universe…

     

     

    if you have had 4 jobs in yor lifr im sure u can remember which boss you liked and which one you detested but stayed in the job..

  9. bt

     

     

    I delivered the same papers as a lad in Garthamlock.

     

     

    In my opinion the story gets longer in the telling, and I agree with Minx1888 that giving it tight to the dead Jock Stein is crap.

     

     

    I don’t usually buy autobiographies of Celtic players and TG’s will be added to that list.

     

     

    Hope you get good news at the doc’s!

  10. blantyretim is praying for the Knox family

     

     

     

    11:28 on 16 May, 2014

     

     

     

    Philbhoy

     

    I used to deliver the catholc observer, irish weekly and the universe…

     

     

    if you have had 4 jobs in yor lifr im sure u can remember which boss you liked and which one you detested but stayed in the job..

     

    ———————————————————————-

     

     

    Delivering the Catholic Observer was my first “job”. Unpaid of course – it was a vocational post! Got some good tips though from the generous people of Coatbridge. The other benefit was getting to see the lassies from my school answer the door in their nighties! :-)

     

     

    What’sTheStoryCSC

  11. Alex Gordon was Sports Editor at Sunday Mail and a sports reporter at the Daily Record in the days before these papers became what they are today.

     

     

    He is writing a piece for the magazine on the lamb eaters and how they compromised themselves and set these papers on course for the public distain they now endure.

     

     

    Alex is a Celtic man be in no doubt about that. He, like Tommy Gemmell, are old school.

     

     

    The week after he left the Sunday Mail – the very next weekend they had the hearse outside Celtic Park. The editor had been trying to run that for weeks and Alex aggressively refused to allow it in the paper.

     

     

    The Lions know and trust Alex.

     

     

    CQN’s involvement was simply to send over a JPeg of the book cover. I bought the paper yesterday for the first time in years. Made me feel somewhat dirty. The cover was used as small as they could possibly manage. They don’t like us much and its mutual as far as I am concerned.

     

     

    When we agreed to publish this book CQN wanted to add certain things to make it better. Like Yogi, Tommy couldn’t get a publisher. We added a chapter on the Racing Club games from Tommy’s first book The Big Shot from 1968. We also added the question and answer session – Tommy wrote a blog on here in February and asked CQNers to submit questions. He answered every single question, adding over 10,000 words to the book. These things make it a bigger and better book.

     

     

    We paid Tommy for the book in February. The money funded his holiday. We also waived any right to our share in the serialisation and this is something that we left to Tommy and Alex to sort out. So the decision was not CQNs. It wasn’t Paul’s decision, or BRTH’s or mine. The Record paid for this serialisation and the money will help a guy who scored for us in two European Cup Finals. CQN’s share is zero. Alex Gordon’s share is zero.

     

     

    That is my last word on this matter. it’s the truth. If you have a problem with that fair then enough. I’m off to explain to a Lisbon Lion that his reception might not be as warm as he thought it would be.

  12. Natknow

     

     

    The tips were the upside!

     

     

    I was partially eaten by an alsation while delivering the papers and ended up in the Royal for two days!

     

     

    I was 7 at the time. Scary.

  13. blantyretim is praying for the Knox family on

    Philbhoy

     

    tell him you need a couple extra Saturday mornings off…o)

  14. leftclicktic We are all Neil Lennon on

    minx1888 praying to Wee Oscar

     

     

     

    11:28 on 16 May, 2014

     

    Spot on.

  15. Philbhoy

     

     

    11:37 on 16 May, 2014

     

     

    Natknow

     

     

    The tips were the upside!

     

     

    I was partially eaten by an alsation while delivering the papers and ended up in the Royal for two days!

     

     

    I was 7 at the time. Scary.

     

    —————————————————–

     

    Good point – I’d forgotten about the dugs!

  16. ....PFayr supports WeeOscar on

    Minx

     

     

    It’s the only way the DR would have been interested

     

     

    A positive CFC story ….not interested

  17. Last I heard Tommy Gemmell wasn’t in the best of health and may need the money from the serialisation in the record.

  18. blantyretim is praying for the Knox family on

    I remember when st jp2 visted Ireland the irish weekly did a great artice, someone wrote a poem/song.

     

     

    oh ireland sad ireland our counties been honoured

     

    by our first papal visit to irelands knox shrine.

     

     

    I still sing that song after alll those years..

     

     

     

    catholic paperbhoys…..

  19. playfusbal4dguilders on

    Anyone remember back in the day, that if, RFC hadnt made the cup final they would announce a big signing in the papers on the morning of the Cup Final to steal the glory???

     

     

    How did that work out for them???

     

     

    play

  20. Dontbrattbakkinanger on

    Minx88- I have a thick pad ofpre-printed ‘Man Up’ scrips for the Sevconians on my panel.

  21. winning captains

     

     

    11:33 on 16 May, 2014

     

    ___________________

     

    Was a certain – Gerry McNee not the editor of the Sunday Mail

     

    when the hearse was sent and, wasn’t it sent to – shock the Celtic

     

    fans of that time into bhoycotting quicker as, time was of the essence?

     

     

    Or, am I howling at the moon again?

     

    HH

  22. Joe Filippis Haircut on

    RobinBhoy. I believe you are correct big Tam is not in the best of health the last time I saw him I did not believe it was him as he looked so poorly. I believe he now lives alone in a small flat with his tv for company.It is sad really what ageing can do to us I hope no one has a go at him but that treat him like the ageing legend that he is.H.H.

  23. fanadpatriot on

    I never buy ex-players books,if I wanted to read drivel I would buy the Sunday Post.oor Willie and The Broons would be a better read.

  24. minx1888 praying to Wee Oscar on

    Winning Captains – I am sure he will get a great reception on here today.

     

     

    I remember the days when CQN used to carry the strapline Celtic Quick News not lazy journalism.

     

     

    Most of us came onto here to read about Celtic get the facts not the MSM spin, that very strap line is what encouraged most to visit this site.

     

     

    To expect any on here to welcome a serialisation of any Celtic book never mind a Lisbon Lion in the same paper that wrote Thugs and Thieves is in my opionon a little nieve!

     

     

    I think it is fantastic we get the opportunity to chat to one of the Lisbon Lions on here, and I’m sure it will be a very entertaining afternoon.

  25. Got this back from the Big Shot…

     

     

    I’ve just picked up the Record and I see where you’re coming from.

     

    I believe the critics should read the entire chapter before making a noise.

     

    The Record haven’t handled the serialisation well. I noted yesterday that they had the wrong price for the book. There are a lot of good things about Jock in that chapter.

  26. blantyretim is praying for the Knox family

     

    __________________________________

     

    I used to be a paper boy in a shop in Blantyre on,

     

    Glagow Rd owned by Willie Pate.

     

     

    Anyway, in winter time….the hun pb’s were allowed to stand inside the shop early in the morn as the paper count would take place and, the Tims(2 of us/11 of them) were told to stand outside – reason being, we were wearing different colors of scarves from the huns!

     

     

    The hun pb’s got all the wee easy places to deliver to and, the 2 Tims were sent down to Springwells!

     

     

    On the last day of our careers as pb’s a Saturday evening – Sportstimes – the pink – was sold by us in the miners welfare and was ‘tanned’ along with the rest of the weeks takings by way of a massive kerry-oot to celebrate being away from the old hun bassas job – forever :)

     

     

    It was a good grounding for what would come in future fields of employment on nice wee bonnie Scotland :)

     

    HH

  27. Hrvatski Jim on

    playfusbal4dguilders

     

     

     

     

    11:43 on

     

     

    16 May, 2014

     

     

     

     

    Anyone remember back in the day, that if, RFC hadnt made the cup final they would announce a big signing in the papers on the morning of the Cup Final to steal the glory???

     

     

    How did that work out for them???

     

     

    play

     

    ———————————————–

     

    The only thing they forgot to announce was how they were going to pay for them.

  28. winning captains

     

     

     

     

    11:33 on

     

     

    16 May, 2014

     

     

    Thanks for clearing all that up, and I hope his reception will be worthy of the mhan