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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Jo Inge Berget puts Norway 1 up against Croatia
Gerry…
Booked into the same establishment as Bobby and his da for three days in Dublin, then two weeks in the priory when I float home;)
I knew as soon as I posted the dogging, the vultures would swoop, bassas:)
Hello again all you young rebels.
My goodness, since i put Billy Price’s name onto the blog nobody
has mentioned PL or how bad Celtic are being run, so here’s another
of my old time favourites wee Bobby Craig.
Bums on seats.
H.H Mick
Berget again!
2-0 Norway.
Get him in on loan!
HH!!
Berget scores his second of the game, turning the defender inside out, to make it Norway 2, Croatia 0.
I don’t know what on earth has happened with this guy all of a sudden to make him a world beater.
Watched first episode of an American drama called ” Narcos” last night, anyone know if it’s worth sticking with?
JUDE2005 @ 5:50 PM,
“He had a chance to show the young Bhoys a thing or two and he blew it. Sorry excuse for a pro footballer imo I was there btw.”
Heard that Beorrigter was getting a pay-off and going for a free…
Then there was his Stuck at Celtic quote on twitter.
Hope someone was just about to sign his big pay-off, seen the tweet, ripped up the contract and said – so you are.
Haven’t you got a Bhoy at Celtic? Hopes he’s doing well.
Going to see them v Benfica in a couple weeks time.
Hail Hail
Berget ???
Too many people way too eager to get on the guys case . Result ? Head went down and didn’t want to play for us .
HH
Met a neighbour in the passing today and he started talking about oldco…..the conversation ended when he intimated that, deep down, I wanted them back…… ” come on, you want them back, don’t you” ……”Naaaawww” ….”why not ? ”
“Too much hatred” …… End of conversation …. hahahahahahaha
Tallybhoy…
Whit Chanel is Berget on? Ya wido:)
jmccormick on 6th September 2015 6:29 pm
Watched first episode of an American drama called ” Narcos” last night, anyone know if it’s worth sticking with?
————
I binge watched the series, it’s okay, nothing more really. Interesting I guess but you kind of know most of the stuff about Escobar already, so the only new stuff was the Government side of things.
CHANNELISLANDCELT on 6TH SEPTEMBER 2015 6:32 PM
Correct …. Too many Celtic Supporters are influenced by the rabid media agenda
THE_HUDDLE on 6TH SEPTEMBER 2015 6:37 PM
I thought it was BRILLIANT from start to finish …fascinating ….!!!!
Posted a few bits on the Volunteers fighting in the Southside of Dublin.
Here is a clip from the Northside, it is close to our venue in Parnell Park.
If anyone is interested in a Walking Tour here, let me know and I will try and organise it for you.
Dublin2016@mail.com
http://youtu.be/SdiKoN0s32s
HH,
Clogher
Sipsini
I need to wait till January for the better halves holidays, she quite fancies it and it’s a history lesson for the wee yin, never any hatred in this household, history lessons are ok
Re Billy Price, I believe that he may have been sine died at one time, due I think to irregular transfer activity.
He played in a terrific Celtic defence of Haffey, McKay and Kennedy, Crerand McNeil and Price. How we won SFA (and for once they weren’t to blame) is still a mystery, and a sorrowful one at that.
Bobby (bunion) Craig, was a celebrated signing when he came to us due to his performances for the Hi Hi at one time. After a promising start his form seemed to suffer as a result of the long lay off in the winter of ’63.
Although a traditional inside right he was sensationally picked at outside right to replace the wee mhan in the SC Final replay humiliation against the deid club. Billy Price also played in this game as did John McNamee who had replaced the departed Pat Crerand. The latter would win an FA Cup winners badge with manure 10 days later.
Wee Bobby was let go 3 months later in a swap deal with Bobby Young, brother of Ian, who never kicked a competitive ball for the club and actually struggled to get a game for the reserves. he departed at the end of that season to the Arabs.
Incidentally Bobby Craig scored 13 goals in 21 appearances for a poorly managed Celtic side.
He eventually emigrated to Toronto where he was instrumental in helping to establish the Toronto Celtic Supporters’ Club. He also coached the Toronto Celtic team which my late brother played for.
without wishing to call ronny into question, how come his magic didnt work on berget whne he had him ?
Started watching HOUSE OF CARDS …. what a load of old shoite ….they want us to believe there is only one scheming, devious, politically corrupt asshole in Washington …… Give us a break
67Heaven
Do you honestly think people are influenced by the media ?
Journalism is a dying breed, there are people in Cqn who can put a sentence together better than any journo, the chip shops don’t even use them now for their suppers
SAINT STIVS on 6TH SEPTEMBER 2015 6:42 PM
He lost his wand up your erchie …..(good time to go and have my dinner now)
Berget was mince in a Celtic Jersey, one no bad game against Dundee Utd but I am afraid you need more than the odd good game to be a Celtic player, especially with hard to please fans like us
67 heaven…
I gave a mate a lift home from work today, he asked me the same question, and he’s a tim!
Told him, I don’t ever want to them in our ground again.
His answer was we need them to make us stronger!
Reflecting on it, he might have a point and for all the bravado on here that the league is fine without thems, it’s wilting.
So my outlook is they/thems in whatever incarnation we will be playing against them in the same league. Let’s just make sure we can humiliate them on the park…that is all we want to see from Celtic. HH
Sipsini,
Your mate may have a point but it is a point I have no interest in. I hope they never ever darken our door again. Their hatred and bile make me sick.
SIPSINI
I’m in Italia at the moment.
Been doing a fair bit of ogling. …but no dogging!
:-)
HH!!
CQN – must be a misnomer. Last few days have signed on been unble to read comments, site continually crashed, “cqn is not responding” Anyone else been having this problem with new format?
Gerryfaethebrig on 6th September 2015 6:47 pm Berget was mince in a Celtic Jersey, one no bad game against Dundee Utd but I am afraid you need more than the odd good game to be a Celtic player, especially with hard to please fans like us
*I think you’ll find that the last statement just about sums it up, he was seen as the manager’s favourite and the pro Lenny brigade who wanted RD out were quick to jump over his protégé.
I just watched another whipping bhoy being given a standing ovation in Oslo. Quite remarkable as it was NFL that signed him, or mibbees PL.
sipsini
Get yourself over the West End……………
The local deli is letting you sample the Grunting Growler for free!
TONTIME TIM
Bobby (bunion) Craig, was a celebrated signing when he came to us due to his performances for the Hi Hi at one time. After a promising start his form seemed to suffer as a result of the long lay off in the winter of ’63.
Was it not Billy Craig that played for the HI HI, I think we got Bobby from an English club, perhaps one of the Sheffield teams ..??
You have to sign players who you think will suit the system you wish to play.
Considering that we had no system when JIB signed and he was pitched into a Euro qualifier, the boy had no chance.
I don’t think he would have fitted into our style, whatever it is.
We had just released a similar type of player, the Sainted Sammi.
Celtic67,
I think it is some Celtic supporters who drive the media agenda.
They don’t have to look too far to get negative comments about the club.
I make a post saying that there would be 100s capable of doing Pedros job, and the Pedro groupies jump on insisting I give a name.
For a start it’s not my job to appoint a CEO, that will be at the behest of DD and his lackys.
But this is a man who was an accountant for an open cast mining company, who had no experience of running a football club we are talking about here.
A quick look in Linkedin and you will find 100s, if not 1000s who are running very successful companys with massive turnovers who could do his job.
Cultsbhoys boss is a CEO that is in charge of a unit that is running at over 1.2 billion a year, he get 200K for his efforts.
That should be the level we are talking about here, not someone who is on near a million for running a co with a 60 odd mill turnover.
You would think if Pedro did leave, the end of the world would come listing to some of the groupies on here.
I have stated many, many times that I think he is doing a grand job re the finances given the constraints he is working under, but god forbid I crit him cos I think he could do better re the football team.
You lot really need to get a grip on reality.
I think we got the wrong Craig.
We would have been better off signing Ailsa Craig!
Sorry to hear of the death of Ralph Milne. A great player that didn’t quite reach his potential.
BMCUWP’S old man has looked younger than him for at least the last 30 years, but that’s only because his ma has a heavy thumb.
TTT
We have a lovely young couple managing a local hostelry in Balloch. Yup, Ailsa and Craig. I didn’t get it the first time I met them:o)
weeman67 on 6th September 2015 7:05 pm
TONTIME TIM
Bobby (bunion) Craig, was a celebrated signing when he came to us due to his performances for the Hi Hi at one time. After a promising start his form seemed to suffer as a result of the long lay off in the winter of ’63.
Was it not Billy Craig that played for the HI HI, I think we got Bobby from an English club, perhaps one of the Sheffield teams
*we did but he played for the Hi Hi first.
Billy Craig only played 9 games for us, one of them being the SC Final which we lost to the jambos. He was released and went on tae play for Third Lanark.
TET,
How many of those 100’s and 1000’s are running football clubs?
Bobby Craig was great midfielder in his day. We signed him and played him outside right !
Good coupon today, Wales and Malta both drawing.
Alfred Effiong gave Italy a rough ride and scored a cracker today for Malta
Plays club football there, born in Nigeria.Like Amido Balde, but with skill. Worth a look. Celts.