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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Thanks Chairbhoy
Passed it on
HH jamesgang
http://janchipchase.com/2010/06/brands-that-dont-travel-so-well/
MICKTT
I reckon over-reliance on the letter F at some stage…
Well. At least we know now just how PL became the master of spin.
MWD said AYE
We lost the ariel battle against Malmo.
HH jamesgang
Jimmynotpaul
The public sector isn’t the best but it’s a million times better than the private sector, I done a wee stint working for Virginmedia, thankfully my good lady could still pay the bills, I tried my best but actually got that fed up walked out the door, principles are magic (as long as you can afford them)
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS on 6TH SEPTEMBER 2015 10:51 AM
MICKTT
I reckon over-reliance on the letter F at some stage…
₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩
Without a doubt, I wonder if we’ll find out soon…
Ayrshire is Green and White
Persil Lawwell everything comes out in the wash..
Was said before Lawell is on top CEO wages amongst the CEO of other clubs all over Britain.
Would Lawell the fan still be with us for 100k a year ???? Or would the bright lights of London been more appealing.
This brand is your brand
MWD said AYE
Top of the morning to you all from a sunny Dunfermline where the sun is splitting the trees. Those of you bound for East End Park today will get a good weather day for sure.
H.H.
P.S. Thanks to those on Celtic Quick News who supported the petition which is now heading for 102,000 and is eligible for consideration as a subject for parliamentary debate.
Whether or not parliament debates this thorny topic is open to question, but Derry-born Damian Moran has done us all a service by showing that we care about who our government support and our voices can be heard.
Again for those who have signed thanks and will you please push your MP to take this up on Monday with The Speaker of The House of Commons?
https://petition.parliament.uk/petitions/105446
AMESGANG on 6TH SEPTEMBER 2015 9:43 AM
Point of info please.
Tic mate got into an argument with a sevconian who claimed only PL skullduggery sank them cos they departed the top league prior to liquidation. Ergo being flung out the league is what confirmed their demise.
Can one of the many experts on here give me a couple of definitive lines I can pass on.
Thanks in advance
HH jamesgang
– See more at: http://www.celticquicknews.co.uk/prognosis-for-trading-with-criminally-acquired-assets/comment-page-27/#comments
========================================
Don’t listen to any of the replies earlier………..tell your mate to hit them were it hurts……..right in their vanity and superiority delusional glands………
Get your mate to tell Sammy he’s 100% right and their relegation (haha) was at Celtic and Celtic supporter’s behest. Your pal should remind him that Celtic can do whatever they want to them and whenever PL chooses to do it……..like last season’s failure to get promoted………
Any of the sound logic of the likes of Canamalar will be lost on the trumpets anyway………….they’ll just go all red faced and if in superior numbers threaten violence.
Sectarianism in the Scottish police.
I am shocked and astounded.
Surely it can’t be true. I suspect that cad lawwell is behind this, with the unseen fenian hand that controls the Scottish media as they assault another fine Scottish institution.
John Knox will be spinning in his grave
Proudbhoy
Peter already had his Charlie Nicholas chance and if you think our CEO is better paid than his counterparts down south well Peter must have a pretty good agent, am pretty sure he isn’t, as I posted last night if you don’t like Mr Lawell who is his replacement
‘Police Scotland have repeatedly stated their determination to tackle sectarian abuse and behaviour after anti-sectarian laws were introduced by the Scottish Government in 2011. The controversial Offensive Behaviour at Football and Threatening Communications Act has resulted in hundreds of people being arrested for alleged offences, mainly at matches. ‘
####
Sectarian behaviour was already illegal before the SNP introduced their legislation.
The purpose of the legislation was to outlaw what the nats deem to be offensive behaviour.
Or as SNP MSP Christine Graham put it, to even up the score.
Afternoon Timland from a hot hun free mountain valley.
See this asking for a name who would replace Pedro, how fecking childish.
If Pedro were to step down, or get pushed, there would be 100s well capable who would and could fill his boots, many that would work for much less, many who are presently working for companys that have a much bigger turn over than Celtic do, and imo, many who would do as good or a better job than Pedro is.
But, it’s down to the remit he is working to, and that is firstly to the PLC, the football team is way down the pecking order.
CFC not PLC
NATKNOW
20 minute wait for a brekkie
Magners it is then
BT
How was your Mississippi Burning night?
LOve
Soal
Chasing the Dons pit of Larkhall ;-)
Exiled Tim
Childish asking people for a solution to their problem ?
Some might think your “Hun free mountain” posts are maybe a bit childish but I suppose we are all kids at heart
100s of good CEOs we must have missed them before when Terry Cassidy and Jock Brown wee the creme de la creme
All the very best from a Hun polluted Ecosse
Demons even
Jobo Baldie on 6th September 2015 8:28 am
Calderwood
THE EXILED TIM on 6TH SEPTEMBER 2015 11:08 AM
Afternoon Timland from a hot hun free mountain valley.
See this asking for a name who would replace Pedro, how fecking childish.
If Pedro were to step down, or get pushed, there would be 100s well capable who would and could fill his boots, many that would work for much less, many who are presently working for companys that have a much bigger turn over than Celtic do, and imo, many who would do as good or a better job than Pedro is.
But, it’s down to the remit he is working to, and that is firstly to the PLC, the football team is way down the pecking order.
Yep,same as the old chestnut”There are loads of good strikers out there we could afford ,and sign”.
Nobody can tell you a name,but hey,who cares,theres hunners and hunners out there.
CEOs would be queueing up outside Celtic Park,in fact last night someone on here actually knew one who would do a better job than PL.There you go.Why bother looking.
Funny thing is,if we buy a virtually unknown player,for a couple of million,polish him up for a couple of years,then sell him on and then go through the process again,its known on here as “Downsizing”.Not so with CEOs it seems.Get rid of PL and get someone much better,much cheaper,and just watch us go.
Its so simple even Warburton has latched on.
CFC not PLC
– See more at: http://www.celticquicknews.co.uk/prognosis-for-trading-with-criminally-acquired-assets/comment-page-28/#comments
GERRYFAETHEBRIG on 6TH SEPTEMBER 2015 9:12 AM
I was tucked up in Bed when you posted last night. Now waiting on my Bacon and Egg Rolls having done my Sunday duties.
Keep the Faith!
Hail Hail!
THE EXILED TIM on 6TH SEPTEMBER 2015 11:08 AM
100s you say, ok toss a name in the ring and Let the PL lovers muse over it, ….you won’t because you can’t. But do continue with your hatered jealousy what ever you want to call it, your all the same, cowboy hats with no cattle,.
3-0
Hampden season.
Other scorer I think was pvh
Turkeybhoy
The CEO is an easy target, I would hazard a guess and say Dermot Desmond knows a wee bit more about business than me, if he could get a better CEO for less money I am pretty sure he would do it
Unless he knows less than some of Cqns business guys, Dermot will soon be looking for the names of these 100s who will the job cheaper than Pedro, Mr Desmond the ball is now in your court !
Lennybhoy
I knew you would take the Carsons post in the jest it was meant, am still daughter less the sooner she is home she will order me off Cqn, it’s been a long long weekend !
TD67 some people are infatuated with the board my love is for the team !
The 3-0 game against the huns in the Hampdump season.
Scorers were Moore og, Vata and big Pierre.
HH!!
Saint Stivs.
R.e. 3.0.
Thanks for that.
With regards P.L
The truth is somewhere in the middle.
My take on it, he’s paid his money to do D.D.s work.
D.D. is clearly happy with the job he is doing. Do I think P.L. could do better? Yes.
My point is, no point in going on about P.L. D.D will just appoint someone else to do his work.
What’s the point in putting up a name………..that’s all it would be , a name. Few if any on here would have any experience or knowledge of either the nominee’s attributes, or the job-role.
What, ain’t in doubt is we are under-achieving. Maybe you’d disagree ?
As supporters and fans we have no grasp of the problems faced by a CEO at Celtic. We act in response to results, little else. A blip can happen in sport, it’s a game of chance, after all. But when the club, make the same mistakes eg neglect to sign a goalscorer or neglect to provide a Left back then, criticism, and deserved, will result.
I have some sympathy for our CEO. It’s my opinion that he is charting us through a period when our finances have been reduced, because of the Ibrox scenario. Like it, or lump it but thousands of Celtic fans are apathetic just now as a result. CQNers attitude differs from the mainstream support on this matter, a lot.
St Stivs & Tallybhoy
Cheers for the info on the 3-0 game, it was a bad time in our glorious history, but we came out the other end
Speaking of big Pierre reminded me of wee Fergus not sure if it was directed to Pierre or Jorge Cadette when speaking if wages wee Fergus asked what they were looking for, whatever the sum was Feegus replied “come back when you are sober’ priceless
Take care and Hail Hail
GERRYFAETHEBRIG on 6TH SEPTEMBER 2015 11:45 AM
Turkeybhoy
The CEO is an easy target, I would hazard a guess and say Dermot Desmond knows a wee bit more about business than me, if he could get a better CEO for less money I am pretty sure he would do it
Unless he knows less than some of Cqns business guys, Dermot will soon be looking for the names of these 100s who will the job cheaper than Pedro, Mr Desmond the ball is now in your court !
This place is filled with guys with genius footballing brains,dont you know.They know much more than any manager we have had,they know all about running a team the size of Celtic,and making a profit,in the worst financial times our football has ever faced.As for that idiot Desmond,he made all his money through luck.
As I said,someone last night,knows a CEO personally,and he would take the job,and do it much better than PL.
Oh,and theres a guy works down our chip shop says he’s Elvis.
– See more at: http://www.celticquicknews.co.uk/prognosis-for-trading-with-criminally-acquired-assets/comment-page-28/#comments
THE EXILED TIM on 6th September 2015 11:08 am
If Pedro were to step down, or get pushed, there would be 100s well capable who would and could fill his boots, many that would work for much less…
__________________________________________________________________________________
Now, here’s an exile with his finger on the business pulse. So, if there are ‘100s’ you surely must be able to name 5 of them. (That would be a minimum of 2.5% of those eminently qualified candidates.) Name them. We know you can do it, tet.
Gerryfaethebrig.
Another of Fergus’ quips was to Simon Donnelly, when he asked for an increase was Do you the song. Do you know the way to San Jose.
Which although showing his ruthless streak, I have to admit thinking it was a good line.
If the Huns get promoted this year,we will have at least 45,000 STs sold.
If I am wrong,please feel free to come back and slaughter me for my forecast.
Worried,me,nah.
Gerryfaethebrig
As I am too, but the PL thing is getting out of hand, every farming day, on an on an on an on, Feds it’s tiresome, all these great people who know that PL is not good for Celtic, all I’m asking is Whois yer man, where’s your champion, what’s your back up, where do we go from there when PL leaves, not ONE, I’ll say it again NOT ONE, has a name, that’s what you get with a mixture of fifth columnists and Huns, both at war with the board, and can’t have a meeting about it, and that’s the truth, unless someone comes up with a champion to take us where PL can’t, they should take their energy elsewhere, your being called out know I know who my man is, and so do you, so who is yours, where is your messiah, take your time now.
Lurking HUNS GIRFUYs.
Gerryfaethebrig
It isn’t my job to come up with replacements..
My job is to support Celtic and want the best for our club.
Since the Huns went bust I don’t think we have done aswel as we could have basically done to lack of planning.
We all knew VVD was off ski and knew figure would be least 8m so why not give Ronny a good lump of it at end of May for a striker ? Esp knowing that stokes scepovic were not in his plans .
No we leave it til last minute and spend time speaking to fletcher and Michu ffs . Who apparently made it clear months ago our club doesn’t interest them.
Aye great planning.
Now Ronny is left with stokes ciftci and Griffiths. Few dodgy league results and couple hammering a in europe poor deila will feel it from frustrated fans.. While Lawell sits back and starts to research for his next project.
Sorry for wanting better.