So you buy a business and then find that the entire structure and assets of company are subject to a police investigation, where it is alleged that the assets were criminal acquired. That’s a serious problem, but one which will take several years to manifest. Let’s call that Problem A.
Problem B is that you have also established that the business needs to raise cash. This is an acute problem which will manifest in a matter of months.
What’s the prognosis?
It could be 2018 before a verdict on Problem A, the criminal trial, is reached. If it’s not guilty, there are no consequences. If it’s guilty, the rightful owners of the criminally acquired assets can apply to the court to recover them. This doesn’t mean they will apply, but if they do, it’s highly likely that the court will make the award in favour of the rightful owners.
For our example, the rightful owners are creditors of a failed business, represented by a liquidator. It’s the liquidators job to get as much money for the creditors as possible, and in this instance, HMRC is the creditor with overwhelming influence.
There’s an added complexity. Although none of your directors are contaminated by the criminal investigation, there’s a concern that some of the accused are beneficiaries of shares in the company, or commercial contracts which the company has entered into. In short, the accused have left the stage, but they could still have a considerable financial interest in the success of the business, which may steel the resolve of the most influential creditor, HMRC. HMRC know such tactics well and would be reluctant to allow a convicted criminal to profit from their enterprises.
As far as Problem A is concerned, you have to allow the law to take its course and hope for a not guilty verdict. Should a guilty verdict transpire, you then have to hope to cut a deal with the liquidator (representing HMRC et al) to allow you to continue to retain title to the assets.
If the creditor was malleable, willing to come and go with you, this would be possible. Especially as the liquidator may have the opportunity of pursuing the professional indemnity (PI) insurance of some of the accused, who provided professional services relating to the transaction. Grab the PI money for the creditors and allow you, your shareholders, and the beneficiaries of your commercial contracts, to continue to benefit from ownership of the assets.
A great deal of uncertainty surrounds this, however. You would make it your business to get as close as possible to the liquidator. Make sure there’s no limit to the hospitality on offer, but ultimately, HMRC will decide how matters proceed. It may even be the case that PI money is pursued, and the assets are recovered and put on the market. There will, after all, be an eye-watering level of professional fees to cover.
Problem B is, as I said, more acute. Raising money for a business which is losing money and burning cash is difficult enough, but if there is a possibility the business has been built upon criminally acquired assets, the challenge is herculean.
The criminal trial may not conclude until 2018 (or later), and it could take a couple of years thereafter for the liquidator to petition the court for the assets and then dispose of them. In short, the assets could come back onto the market around 2020.
Problem B is for you to fund a trading deficit until 2018, then hibernate for a couple of years, and bid enough to buy the assets at auction in 2020.
In the short term all you can do is try to convince as many people as possible to become co-investors. Or put the money in yourself, of course (sorry, I know how you feel about that prospect). Then you could shower the liquidator with the kind of corporate hospitality illustrated in The Wolf of Wall St, and hope you’ve got enough credit with them to have them batting for you at the creditors’ meeting.
The prognosis? It’s not the fact that you are possibly trading with criminally acquired assets, or that your entire enterprise could be shut down with the drop of a sheriff’s gavel, that would worry me. There’s nothing you can do about that, so ignore it. The big worry is how raise the £25m to keep the lights on until you discover if you’re business’s founding fathers acted within the law.
Good luck with that.
This is an absolute minefield. No one is in control. Three years ago I suggested the best thing to do was to start from scratch at another location, this is the only way to proceed with certainty.
Share premises in Paisley, or Cowdenbeath or wherever will take you. Hope that you can carry some brand affinity (although clearly you’ll not be able to use any disputed IP, including brand names). Appoint reputable people to your board and get back to doing what you really want to do.
Behold to no one contaminated by the decades of misrule. Cut loose those who hold the onerous contracts. Allow the assets to come back onto the market in due course, knowing that by then you have all the customer goodwill you need to ensure there is no point in anyone bidding against you at auction.
The future will be nothing like the past, but at least you’ll have a future.
Celtic are the first UK club to react to the refugee crisis
“This is absolutely the right thing for us to do. Our club was formed by immigrants, many of whom had escaped the devastation of the great famine.” Tony Hamilton, Celtic FC Foundation CEO.
Proceeds from Sunday’s Jock Stein 30th Anniversary game will go to alleviating suffering of the refugees. The club will appoint a charity with expertise to ensure the assistance is productive.
I know we go on about the Foundation a lot, but it’s the most important part of our club, today and every day. Never let this change.
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ALASDAIR MACLEAN
Two poignant ones for you,bud.
FRANCE
FLOWERS
MacJay son,
Have some respect for the drunks who’ve just got a break when they,ve realised they don’t have to drive their daughter to work in the morning!
Boab
Call that Pete Seeger?
This is Pete with them good `ol boys.
https://www.youtube.com/watch?v=QmJj6LZogms
Can`t you see and hear the Keltic ( sic ) influence?
Alasdair ( of Gillies fame)
Mid arvo. Sydney Spring day.
Drunk? No…….but working on it.
My sprogs do the driving now.
As they should.
BMC,
The first one – well kent – the second….playing on another tab as I type…MacJay …getting to your one,,,,BUT
Thanks a million….sad – or happy – to say – you’ve ..wait,,, now for MacJay’s one…on now…..Keep me guided…wait a minute MacJay…well, listening ..hielan dancin
BMCW,
Right, listening now – Pete Seeger eh?
Macjay, are you there?
Yo.
Some good stuff there,fellas.
Plenty more down them sidebars.
Speaking of bars and driving,I’m done wi the latter for the week,and need some kip to prepare for the former.
So,offski and have fun!
Thought you might like this…
Hears / posted before?
https://www.youtube.com/watch?v=WEHeWd7GSO0
Bob
A bit of Brahms.
Or a bit Brahms?
ffs – that was a follow on from the pete seger stuff
MacJay…this is what I meant…
https://www.youtube.com/watch?v=VK0fT_tbGXM
Alasdair 4.58
Talented lads.
Great report with their audience.
Gentle humour and some unpredictability in the composition and performance.
Always a plus.
MacJay, that was a couple of years ago in the Mitchel Library in Glasgow…they’ve moved on – slightly. And separately.
Anyway, I thought Marleen’s tribute that follows on to Pete Seeger was good.
No quite sure about the invasion of France video connotations – so I thought I’d copy and paste it onto my pop artist friends website – they like that sort of thing.
And got mixed up.
Mate.
I regularly watch the original “huns” in an effort to inform myself about that madness.
In fact I was tempted to post the German version of Lilli Marlene.
You`re right,though,there`s always someone desperate to take offence.
Current events in Europe underline the sea change in Germany today, when compared to `39.
It seems like a desperate attempt by Merkel to underline that change.
I wish them well.
Macjay,
Same Celtic supporting highland boy in Estonia last month…
https://www.youtube.com/watch?v=iDhFGvBnGE8
Brilliant.
Liked the gradual increase in pace.
As did the audience.
I hope the lads are getting sound professional advice.
Gooooooooood morning CQN, rise and shine!
Coming to you from a dry, sunny, more-clear-than-cloudy East Kilbride. Get the running done, the washin’ oot, the grass cut – who said modren International Weekends are rubbidge? ;-)
Jobo
Sitting here in sunny cambuslang – waiting on the zombie parade that will inevitably march past around 8:30am
After our CL exit and the sour atmosphere at CP last Saturday it’s not a bad thing we have no game this weekend. Time to reflect and appreciate what we have. Onwards and upwards.
What day is it?
Personally, I would take no part in anything the Supporters in the North/East stand ran,.
Any thing ran by Celtic, I have no problem with as that would be ran official and sincere.
The other would have an agenda, plus they have cost the club tens of thousands of pounds of which could have been put to better use.
Morning all.
Bright Saturday down here. Perfect for a game of football………………………
Perfect too to ponder on the black clouds gathering over Govan………………Any arrests expected soon?
TBJ
Are they out in Cambuslang today? Don’t think I’ll be out much then.
Tcgw
I have lived here for about 7 years and noticed the zombies parade to some level every saturday from june to october
Season ticket holders have been given the chance to pick up an additional 2 free tickets for the home game against Dundee on Sunday 20 September. Only available to get in person at the ticket office (open today 9 – 12) and it’s on a first come first served basis.
So it’s the ParkRun in Pollock Park for ole Jobo at 9.30 then a trip over to The Park for a couple of freebies. See you all there around 10.15?
Article here – http://www.celticfc.net/tickets
I heard Sports Direct are bringing out a Sevco Xmas CD with all your favourite prison songs including the Green and White grass of home.
TBJ
I remember walking down the main street the Saturday after the referendum when I accidentally walked into them whilst wearing a green Adidas top. It’s a disgrace that you can feel in danger walking down a public street on a Saturday and the authorities think it’s ok.
Jobo sad to say but you couldn’t give tickets away for last Saturday’s game.
The club give out free tickets to season ticket holders, to pass on to people who may be interested or normally can’t afford it, and that’s a bad thing?
I’m missing something right?
Paul- That’s an excellent read as a leader, reminds me of the one you posted many years ago about the MIH Accounts when the debt pile was careering towards £1billion with only the hugely inflated tangible assets of RFCplc (IL) in any way trying to prop this up. You made it crystal clear how this would end up, nobody of a blue hue listened, especially those in the media. Jelly and ice cream sales rocketed.
Any sensible Sevvies out there should be very concerned at this latest essay but thankfully there are not many of them around and the rest prefer their news stories lamb flavoured. Which is nice.
Tony agree but it’s worrying that we are giving away tickets in September. I dread to think what it will be like in December and January. But no worries CP will be full in April when we win league. Too many glory hunters imo.
Gordon64 –
Part of this initiative must surely be to get folk along to a game that they might otherwise not do, whether through choice, finances, etc. I have a better chance of saying to someone ‘fancy coming (back) to Celtic Park…’ in September than I would in the depths of winter.
me and my youngest son have season tickets. My other 2 children will be delighted if I tell them they’re getting to the Dundee game. So for me this is a good idea.
Right, must run….
Gordon64 on 5th September 2015 8:22 am
Sorry, but that’s nonsense …. There was a good crowd at CP last Week
67 No there wusnae.
……from the west name Fife he came …..
https://twitter.com/leftybhoy/status/640051747998855168
32 at 9 50 am -way down south.
An early start – picking grapes – ones for eating .The ones destined to become vino collapso can wait..
Breakfast hour was given over to Rico Ridriguez choons – .
Rico Rodriguez RIP.