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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The numerous posters who vent their hate against Peter Lawwell…I have come to the conclusion that you are slowly being eating up by your jealousy of Peter Lawwell. I am surprised that Peter Lawwell has not been blamed for the Scotland defeat, after all in their twisted logic, Peter Lawwell appointed Gordon Strachan didn’t he?
I really believe the uber critics lead rudderless lives with no joy, unless Celtic are defeated. Surely this poisonous diatribe that appears on CQN every day must affect their health? How does their partners cope with the perpetual pessimism? How do the children cope? Barcelona, Real Madrid have massive budgets, ( and debt) their CEO’s sign more expensive players’ who are flops. I don’t believe Peter Lawwell scouts players and signs them, if he does he must take credit for Victor, Virgil etc? No name replacement for Peter Lawwell has appeared on CQN, why? Maybe theses headhunters a for Fortune 100 companies, have a tough remit, buy players who never flop, don’t sell players who have become very good, pay millions in transfer& wages and never let them leave. This is all down to jealousy , a corrosive trait, that will prematurely curtail your journey through life.
tonydonnelly67 on 6th September 2015 9:08 am
VALE BHOY on 6TH SEPTEMBER 2015 8:56 AM
Yes of course, safety in numbers in a safe house…..pathetic if you ask me. Next big story on her will be how wonderful an officer she is and they will wheel out a Celtic supporting cop (soup taker) to tell you how he/she has never seen that side of her, and to say they had banter many times about the old firm, but nothing serious, blah blah blah
– See more at: http://www.celticquicknews.co.uk/prognosis-for-trading-with-criminally-acquired-assets/comment-page-26/#comments
___________________________________________________________________________________________________
One positive, she has been charged many years ago this would never have happened, fact you probably would not even have heard it mentioned. PS Hope she gets the bullet without any severance and then a private prosecution from the colleague involved.
Cos I really am asking for a friend!
So I’d be walking into the Horseshoe and skelping a stickie I’d never met!!!
Reading online I think the answer may be that the hmrc rejection of the cva in June 2012 made liquidation inevitable, thus providing the backdrop for the July decision to let them into div3.
Liquidation formally took place in October.
Think that’s correct. Their stab in the back theories are exactly are virulent and deeply held as I expected them to be.
Right. Time to get up. Need to hoover the house and cut the grass and makes sure I don’t get them mixed up!
HH jamesgang
jamesgang
They lost there membership when liquidated they had to reapply for membership as a new club to get back into the scottish League, and the got Dundees ticket, it’s well documented.
JAMESGANG on 6TH SEPTEMBER 2015 9:54 AM
Cos I really am asking for a friend!
So I’d be walking into the Horseshoe and skelping a stickie I’d never met!!!
~~~~~~~~~~++~~~~~~~~~~
If yer looking for hauners,I’m sure there will be a queue for that!
Good luck educating pork,mate.
AULDHEID @ 3:10 AM,
It’s been a number of years since I read Peck’s work, but have to say it is very congruent with Christian teaching and values.
In fact I was going through a particularly bad time when a Client recommended I borrow the Road less travelled.
Was not into “self help” so I politely used.
He said your a Christian…
Yes…
Read this…
And he looked out a passage about the Holy Spirit that made perfect sense to me.
I read it and the sequel – Further down the Road less travelled?
It worked for me, books that genuinely made you rethink, yet didn’t diminish your original values, it strengthened them.
The passage on Original Sin bring entropy was a case in point.
Though I’m not sure how much value I’d get from it now and having recommended it to people doing through issues in their lives, in general they’ve found it a very difficult read.
One of the concepts that goes through the book, is one that all great Religions and Philosophies have and that is the importance of being non-judgemental.
A concept much easier to espouse than put into practice.
Hail Hail
Since it is international week and the big leagues aren’t playing we thought we’d post an extract from Caesar & The Assassin which tells the story of the Celtic board chasing our manager and selling our best player at the time.
Auld Bertie,
I don’t see anyone hating PL, people question his worth and his decision making, while people like yourself who accuse fellow Celtic supporters of hating refuse to accept there is plenty of room for improvement and show blind loyalty are acting like the huns did prior to their demise, the Celtic support have always questioned authority and that IMO should never change nor should there be anyone above question.
There were a lot of fair accusations made last night, I note you do not address a single one, simply attack anyone who identified his shortcomings. Blind loyalty kills clubs
AULD BERTIE on 6TH SEPTEMBER 2015 9:51 AM
Well said that man.
some good debate and opinions.
Latchford clearly has some insight into the way things work.
For me Lawell is doing great at some things and terrible at other things.
Even a few more positive celts on here have hinted that Lawell has too much power or workload and it’s not healthy.
Song of the week-
strike weapon – Christy Moore.
Just read back the night shift,for a change some really decent stuff on it. Some good debate.
Gerryfaethebrig.
I know you’re a half glass full ghuy but I’m with neganon, there was a time in The Hampden season when I was starting to worry about relegation, our performances and results were awful. Thankfully we improved a little and enjoyed thumping the Huns 3.0 at the end of the season. If I recall Moore scored an o.g. and I think Vata scored. Can’t remember who scored the other.
auld bertie on 6th September 2015 9:51 am
It’s in Vogue for some to be Ultra, it’s just attention seeking, and yes you have to keep an eye on it before it gets out of hand, the minority will and should be heard and never acted on, and then they decide to hoist up another banner, as they need the oxygen, it’s the same every year, they just can’t get enough attention.
JAMESGANG on 6TH SEPTEMBER 2015 9:43 AM
Tell them “it was a vote, you silly bhun”
http://www.dailyrecord.co.uk/news/scottish-news/top-police-officer-charged-bigot-6390402
auld bertie on 6th September 2015 9:51 am ,
I agree, however I fear you are wasting your time; To some hatred of PL has become an obsession.
There are more veomous comments on here towards PL than on the Sevco websites.
If it was my choice I would gather all the PL haters with PL watching the tide at the seaside and go through the samo old repertoire of King Canute to show that no man is all powerfull. :-)
HH.
Celtic get a mention in today’s Italian fitba’ pink for their decision to donate their share of the legends match proceeds to the migrants crisis.
HH!!
Flat world society CSC
MWD said AYE
To the uber critics of Peter Lawwell. Who would you replace him with ?No theories, just name a name, Suspect the trees will be devoid of leaves by the time someone names a name…in the next decade. Constructive criticism is positive, but this yelping of derision every day. No doubt some of the Einsteins will be working on their scripts for defeats against Fernebache and Ajax.
I believe Peter Lawwell has a Miel washing machine with a 10 year warranty…it makes me sick.
BLANTYRETIM IS PRAYING FOR THE KNOX FAMILY on 6TH SEPTEMBER 2015 9:41 AM
NATKNOw
Aye. They don’t even dish out communion wine at St Joseph’s. 8(
I’ll just go straight to the Parkville
——————————————————–
Not like the old days mate. My my parish priest must’ve had a loyalty card for Hayes & Finch in Shawhead. BOGOFs on the alter wine wine. :-)
Actually – loyalty card can’t be right – must be called a faithfulness card or something…
The terminology, as you know, is important. :-)
A turtle, four elephants and fantasy happiness.
Don’t step of the precipice. Life can be gory here in the real world.
MWD said AYE
I’d wash a million miele’s for one of your goals
Ohhhhhh Selllllllllllllllliiiiiiiiiiiiiiiiiccccccccccccccc
Jimmynotpaul
Paul Byrne ?
Can’t be bothered with stats but I am sure we were never worse than 5th and as a positive glass 3/4 full we were only 4 away fae the Bank of Scotland sponsored mob !
AULD BERTIE
PL has made a career from his ability to get value for money for his employers by reducing costs. Do you genuinely think that his salary is value for money?
BSR
You’ll never wash alone.
MWD said AYE
JAMESGANG @ 9:43 AM,
The important part, when dealing with hunguffery is not to begin at the hunguffer’s view point.
Start with reality…
Rangers went into administration on the 14/02/12 – They did this as Craig Whyte wanted to control the process and HMRC were about to appoint their administrators.
Rangers were then deducted the points and managed under the D&P administration to reach the end of the Season.
At the end of the Season Rangers tried for a CVA and failed – June 2015.
Then all the assets, ip rights etc were sold to Charles Greens consortium (Sevco Scotland) many players tuped over to Sevco as did lots of other employees others left.
So technically before they officially went into liquidation Rangers (The Ranger Football Club PLC) were still in existence.
Thing is they had no ground, they had no training facilities, they had no players, no strips – they had few staff and a couple of administrators.
So if Peter Lawwell sold of the assets of Rangers to Sevco Scotland then he’s responsible – if PL had nothing to do with the sale then they should look at the people that were responsible, cause it’s dem whot did it.
When Sevco Scotland played there first game against Brechin at the end of August 2012. They played under a botched together temporary SFA licence.
Because technically the Hunguffer is correct in this respect, The original Rangers Football Club were still going, albeit under administration; they still had their SFA licence, they were still in the SPL.
What they didn’t have was a Stadium or any players or any other assets, necessary for a Club to play Football. It’s the kinda wrong think you get when you believe it’s the same Club nonsense.
Listening to the PL detractors on here, you would think if it was in PL’s power, he would have magiced them a 5 star stadium and a team of Galacticos, ’cause Scotland need a strong Rangers.
Unfortunely that was beyond the great man’s powers:-)
Hail Hail
Let’s all do the spin cycle.
MWD said AYE
Glasgows whiter than white
MWD said AYE
MWD
I’ll set them up
Keep hitting them away
We’ve been happy enough to watch PL Hoover up our opponents. But as soon as it gets to the rough and tumble (dry) of CL defeat our colours run and we leave the man out to dry.
It’ll all come out in the wash I suppose
HH jamesgang
I just can’t get it bright enough.
MWD said AYE
Gerryfaethebrig.
As ever good stuff.
Was at a wedding yesterday, one of your worksunion reps was with there also.
Hopefully things will improve there too.
The Bold Bold Celts
MWD said AYE
BSR
I believe that joke is now a wash out.
MWD said AYE
Canamalar on 6th September 2015 9:49 am…
That is the perfect put down to a hun I’ve heard, in fact I’m away to use it on a couple of zombies in work just now :-(0)
Surfing the web ain’t what it used to be,OMO.
MRHENRIK67 on 6TH SEPTEMBER 2015 10:17 AM
http://www.dailyrecord.co.uk/news/scottish-police-officer-charged-bigot-6390402
₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩
Day after the Malmo home game, interesting I wonder what was said…..
Ayrshire is Green and White
We’ll hang out our washing …
On your heated drive..