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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Narcos is brilliant
Nuff said
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 ..??
Billy Craig was one of Robert Kelly’s wierd and not so wonderful cup final selections.
Bobby did come from an English club and I beleve that his debut may have been against Valenciia.
EDB,
Assuming that they are not siblings, I wonder how long they searched before they “found” each other?
PARKHEADCUMSALFORD on 6TH SEPTEMBER 2015 6:55 PM
I’m with you, whether the League in some eyes is wilting, I never ever want them back.
Truth be told I need the Third Lanark scenario, until that day comes they will unfortunately in some reincarnation be back in the top flight.
I do know one thing, having been to their former home over the years despite their bile, I will never ever step foot inside there again, in my opinion you would only be acknowledging the fact that they are the same Club or some form of reincarnation. I went back in the day to support 11 good Mhen, not leave them unsupported and facing their bike. I do not have any control over whether Celtic FC send a Team to fulfil any future fixtures or to forfeit the three points. However, one thing I can control is where I go to support my Team.
I will go to Celtic Park and support the Team if they come, my choice as I am going along to support my Team at home, regardless of who we play.
Thirdlanarksupportersclub…
Keep the Faith!
Hail Hail!
Nipped oot to buy a packet of fags from the bar nearest to my house.Pre match hype on the tele re the soon come Italy Bulgaria game. A wee group of Bulgarians , lots of Moroccans and not a Sicilian in sight ( barman apart ) Fitba fever it aint.
.
TTT
They’re not siblings and a really lovely couple. I guess that’s life, but not as we know it!
ttt
What, you mean that Pedro was running a football club before he got the Celtic job, well I never :-)
HH
GERRYFAETHEBRIG on 6TH SEPTEMBER 2015 6:44 PM
They most certainly are ….one of my friends is one of the most negative Celtic Supporters I have ever met ….what paper does he read….daily ranker ……and he listens to that shoite ssb comedy show EVERY night….
Hundreds and thousands is it?
Je voudrais un quatre vingts dix neuf avec des cents et des milles.
Tontine Tim,
Your (and a few others) knowledge of Celtic always astounds me.
It makes great reading. Time it was organised and put down on paper.
Know what was quite good today ?
No much paper talk getting quoted, people making their own opinions known and to top it off some Celtic history, apart from the three wise monkeys I enjoyed the blog today.
ttt
I meant to say but got distracted by my better half.
A CEO’s main job is to delegate, and it’s no different at a football club, he has people who do what they do, if they don’t perform, they should be relieved of their duties just like any other business.
HH
TONTIME TIM
He was married to my cousin, I thought he played for the Hi Hi first, guess I am getting old……..??
I was there…………….https://en.wikipedia.org/wiki/1956_Scottish_Cup_Final
PAISLEY BHOY on 6TH SEPTEMBER 2015 7:16 PM
Sorry to hear of the death of Ralph Milne. A great player that didn’t quite reach his potential.
————-
Me too mhate…great player part of the fantastic Dundee united team along
with the Aberdeen team of the 80s made it a great Scottish league.
Siding ….. Absolutely no, not never…… we destroyed them because they had to cheat to try to dominate us ……their support are hate-filled, nazi-saluting horribles, and it is a sad indictment on Scottish Football / Society if we want them anywhere near honest sportsmen….get them tae …, once and for all ….I’m absolutely Luvin their absence / demise….
” I don’t know what on earth has happened with this guy all of a sudden to make him a world beater.”
a) His style did not suit Scottish Football?
b) He no longer has to play in front of our oft time too demanding support?
On another matter .
When talking of the Media influencing supporters, I think it is important to realise that it is the whole Establishment message that has to be considered rather than just the mad ramblings of the DR etc.
In that sense, the `Media` is extremely important in shaping views. Advertiser would not be paying billions were that not the case.
JJ
paisley bhoy on 6th September 2015 7:34 pm
Tontine Tim,
Your (and a few others) knowledge of Celtic always astounds me.
It makes great reading. Time it was organised and put down on paper.
*thanks PB, I used to write for the etims way back but have lost all my postings since then.
Gerryfaethebrig,
No hassle re your tickets, they are reserved for you and the family.
The event should be going onto the AICSC website shortly.
I will e mail everyone again this week that hasn’t come back to me yet.
Anyone else from the CQN family that wants to come over please drop me a mail and I will reserve tickets for you.
Dublin2016@mail.com.
HH,
Clogher
THE EXILED TIM on 6TH SEPTEMBER 2015 7:28 PM
ttt
What, you mean that Pedro was running a football club before he got the Celtic job, well I never :-)
HH
Ah, c’mon now!
You know you made a boo boo in your first reply and then tried to blame it on your Long Suffering!
A cad and a bounder, to boot. : > )
Could anyone on here who would like Sevco in the Premier League next season tell me why they would like that scenario?
JJ
Praecepta…
I’ll need to take a jaunt over to the west end and have a few beers with you, I’ll have a spoon in my mouth whilst trying to fire into the snooty ladies :)
Anyway, where has Dena and DD went too and some others?
MAFFO
It’s for his own good!
ttt
Ach, wit am a like..
HH
evening all .. nice wee day oot at fontwell races..
guess who was giving the prize to the winner in the last ?
none other than paul gascoine…
he was sober and looked well..
i know ..i know.. but well done to him ..
67heaven…
I think siding is me ;)
I don’t want the b*****s back but like a cold sore they keep appearing in whatever format.
We needed to be prepared and sadly, I have to agree with some posters that think we have took our foot off the gas.
This time last year I would feel comfortable of pumping them, now I have my doubts, all down to the lack of investment!
anybody that is in the parallel thought curve that the Hun will survive this season is certifiable ………….its like those Ham acting sketches of someone being shot and dying theatrically ………….me ……I think it is awfy braw ….
braw
mind you there a load of ghostie stories oot there ! hahahahahahaha
braw
Jungle Jim Hot Smoked,
For me, (and I know this doesn’t answer your question), the league seemed instantly cleaner and has gone from strength to strength since Rangers went into liquidation.
It’s almost a certainty the new club will be in the Premier next season – and I can’t help feeling that things will go back to dirty old, dirt same old.
Depressing.
Entry for quote of the season from the gushing interview of Brian Laudrup by Tom English on the BBC.
“Laudrup intends to go to a Rangers game this season.”
Back to the Future apparently.
The headline was how he chose Deidco ahead of Barca, and the clincher from the Cardie was…
No, Not the under the counter EBT/DOS wired into an off shore account..
but a “free role”..
So there you have it, scoopsters.
For more background on how Wattie operated at Deidco and at Everton read Tom Bower’s book Broken Dreams – subtitled “Vanity, Greed and the Souring of British Football”.
SDM, Wattie, Terry Venables, Ken Bates, Harry Redknapp, Peter Ridsdale, David Dein and more dodgy barra boy agents than you could shake a stick at.
English’s article is devoid of any comment about the corrupt regime that lured these people to a club on it’s way to liquidation.
……that awkward moment when you come face to face with a sevcovian with a trolley in the aisle at Asda and your eyes are drawn to the 1872 on the cuff of his brand new sevco tap.
As you’re passing you cant help wondering if he’s noticed the “Roger Moore raised eyebrow” that you instinctively shot him along with the contemptous smirk at the five stars on his chest.
NEUSTADT-BRAW on 6TH SEPTEMBER 2015 8:10 PM
Let’s not kid ourselves, they have more lifes than my cat.
Every turn and trick will be used to keep them floating, we’ve been there before.
That is why we need a team that will be able to humiliate them. PL, get your act together and ensure we are in that position come next season.
Alasdair – we’ll all have to suffer their crap 4 times a season each. If they remain alive I still think they’ll struggle in the top flight. Once teams lose the fear factor of playing an ibrox club, learn to play against the system they are using just now they will find it hard.
But yeah, it may feel all a bit unclean. I hated the whole build up to games against them, the game itself and the aftermath – I don’t want that back either…… Even if it is a different club.
I hate the thought of whatever their club is called competing with Celtic ever again. The longer this is delayed the better in my view.
Sips …………aye they Zombies are known for there many resurrections …..and they will get humped bonny in whatever disgusting ..I mean disguised…form they return ….anyone at any club who contributed to this malignant formation should be held responsible …..and dragged into the light ….
but I digress………..how many multiiverse Celts are oot there??
braw
Evening bhoys n ghirls
CQN BADGE SALE WARNING ;-)
To register interest, email cqnbadges@gmail.com with design you like and how many etc until manufacture and sale :-)
1st two designs are badges and 3rd is cufflinks
https://goo.gl/photos/DtHXqC7jo4ry1CGi6#sthash.6ODckWl2.dpuf
Badges will be £5 and cufflinks £8 (plus postage)
HH
Bundoran Bhoy
TET and I have commented before on the riches of midfielders in La Liga. Surely someone must be scouting there. If not, why not? Any midfielder from below the top six in the Spanish league would be an improvement to our squad.
The header design at the top of the page is a modern classic!
Now available in the form of the latest CQN badge, see Bundoran Bhoys post at the top of the page.
Yep. Berget showing all the ‘experts’ on here that he actually is a player. Pity we signed his twin brother.