Duff and Phelps will be in possession of final bids for the Rangers tomorrow and soon thereafter will formally select a preferred bidder. Liquidation, what you have known to be inevitable for many months, has now formally been acknowledged as a possibility by each bidder.
Duff and Phelps have enough cash to keep the club operating until the verdict of the big tax case, which is expected this month. If Rangers achieve a substantial victory from the First Tier Tribunal they have a fighting chance of survival. If they incur a substantial loss, The Rangers Football Club established in 1893 and incorporated as a limited company in 1899, will almost certainly cease to exist soon thereafter. All shareholders will lose their rights and notional value. Unsecured creditors will take an enormous bath and the secured creditor will acquire Ibrox and Murray Park.
Craig Whyte is, of course, secured creditor and majority shareholder in Rangers, so although some creditors and shareholders face wipe-out, he will emerge with the stadium, giving him an excellent opportunity to form a new football club.
He also has the burden of a liability to Ticketus, to whom he has underwritten payment for the tickets they purchased last year. So any new club to emerge from this debacle has to be designed by Whyte and Ticketus or acknowledge the rights of both. I am ignoring reports today that Whyte may hand over his shares in Rangers for nothing if it was in the best interests of the club.
With fresh investment capital likely to be at a premium, a deal which excludes ownership of the stadium is likely to generate most for the unsecured creditors. Whyte could retain ownership of the stadium and offer Newco a 99 year lease. This would enable him to receive a suitable return for his year’s work and ensure he has the ability to accommodate Ticketus. It would also allow Duff and Phelps to offer HMRC and other creditors the bulk of whatever cash is on offer from the organisation bidding to run Newco.
It will be interesting to see what the preferred bid looks like but leaving Ibrox with Whyte has an irresistible look to it.
Newco will play in blue jerseys but the differences between it and Rangers will soon become apparent. Income for years ahead will not enable them to employ footballers on the kind of money Rangers have employed for the last 20 years. Even if they are able to acquire Rangers player registrations those on premium money will have to be sold, generating an early cash bonus for the new entity.
If the Blue Knights gain control I expect a reasonably cash neutral forward plan but if an outside investor concludes a deal with Whyte and Ticketus, in particular one who advertise themselves as a joint venture between investment capitalists and a merchant bank, you can expect an onerous return on capital to be extracted from Newco in sunshine or in shadow.
There will be many shadows.
Arguments about which league Newco will play in and an appropriate penalty for any transfer of player registrations, how the SFA punish an insolvent Rangers for Lord Nimmo Smith’s findings, what they do if Duff and Phelps acknowledge void player registrations over many years, or what the SPL do about the same issue remain to be resolved.
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Craig Whyte is playing a binder here …… The MSM have known from very early on that his plan was to liquidate, and their agenda of discrediting was put in place for that reason …….. This has diverted the attention away from SDM and his previous board who got them into this poo……
Snyde are just saying that they believe SDM, when he said he was duped …… What a load of old shoite ……… THIS IS COMEDY AT IT’S BEST …….
They’re now talking about the CVA ………. LLLOOOLLL
I thought Xmas / New Year this year could not be beaten but, what an Easter this could turn out to be ………. Off to take a couple of paracetamol ….. Ma heed’s nippin with all this excitement …….!!!!!!!!!!!!!!!!!!!!!!!!!!!
Billy’s Bhoy on 3 April, 2012 at 17:58 said:
St John Doyle
What utter pants.
Eilish Angolini would have attended Cabinet Meetings and plenty Ministers come from Catholic backgrounds including Michael Matheson, Roseanna Cunningham and others.
Fair enough to disagree with the SNP but please keep to facts rather than spurious nonsense.
The SNP like Labour and the Conservatives and Lib Denms for that matter do not discriminate on the grounds of religion.
********************************************************************
I am 100% not talking pants I said no catholic in the Cabinet ie A Cabinet Secretary, No Cabinet Secretary has ever been a Catholic I know for a fact that labour MSPs tease them often you mentioned some junior ministers but none of them are in the Cabinet please check you will see I am correct
hen1rik on 3 April, 2012 at 19:17 said
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I could live with that for a season as long as we serve notice that we will be leaving the SPL as soon as a new set up, acceptable to CFC, can be arranged or we get a suitable offer outside Scotland.
On the road againCSC
My missus just said that ‘Ticketus’ sounds like a STD !
Are Duff & Duffer professional obscurantists? Like Yosser said : I could do that. They are like the village idiots blindfolded and shouting as they are lost in a midnight mist. Its all deliberately mysterious, vague and unintelligible mishmash. Pure Freemasonry. All those reading of dead letters and legal verbiage from their tongues of fudge…i could speak pure trivial trumpery for 500 squid an hour- its like throwing up a scrabble board and reciting the random flammery of the chaotic letters.
Its like one long filibuster.
Geez a joab!
PFayr
Having now met you, I doubt you will have too many problems :-))
A wee interest in Milan @ 10/1 tonight.
ernie lynch on 3 April, 2012 at 18:06 said
********************************
Thanks for your help mate when will these people waken up and see what we are up against
cheers
fergus slayed the blues on 3 April, 2012 at 19:10 said:
re the Louden Tavern
It has not been vandalised
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re the Louden tavern FSTB, its not been vandalised its been popularised :¬)
The popular peoples front and sides are laughingCSC
:¬)
whats all the rave about chrismclaughlin bein the mouthpiece for the doobie brothers, puff n felt ?
he mis-report some stuff today ?
Miki67:
It’s a Mexican STD.
So we’ve had our last three o’clock Saturday game.
That’s outrageous.
I really hate Sunday games.
Turned over to Real Radio there……..pundit says “Noone wants rankers to be liquidated” ……….. What planet do these people emanate from….??????
Was Jim Murphy not a Cabinet Minister? Liam Fox was a CM ,pretty sure he is RC.
Whit an atrocious tackle from 02atittu…if that is the right name.
“Hun infested Ayr”
This is the sort of stuff that gives us a bad name.
TopCorner on 3 April, 2012 at 19:27 said:
TC he tweeted that Whytey bhoy was giving his shares to the Blue Knights without checking his facts, it was quickly rubbished by Whytey thru CH4’s Thommo, then retracted by the BBC…
I wish he would changed his name and stop denigrating my family’s legendary name!!
67 heaven
re SDM..given the perilous state of his businesses he jumped at the chance to get out of RFC ..or rather LBG did
they knew the big tax case was going to sink them ..SDM didn`t want this liability associated with his business..CW saw the chance of making a pound
i find it all quite amusing
My man Thomas with the deliberate knowledge. This is the scenario to be feared.
“Hybrid-liquidation”
A completely made-up drug like Cake.
!!Bada Bing!! on 3 April, 2012 at 19:26 said:
A wee interest in Milan @ 10/1 tonight
Never bet a team who don’t need to win…especially an Italian one ….here endeth the lesson :-)
Ok, maybe someone can put me right.
The assets are only worth £30M
How does that work
Surely HMRC/creditors will realise a bigger return if the assets are broken up and sold ?
Granger-Banyard
i live there …it`s an accurate statement
try wandering around Ayrshire on Saturday night full of the joys of a CFC league title victory and see how you get on
Rocket Man
Nicely done, a Cake reference, maybe a first for the blog?
starry plough
thankyou once again
and my condolences to you and yours
when Lenny gave him a roastin couple weeks back, i thought that would be the best thing for him
have seen him around stadia and all – struts about as if he owns the joint – again, a wee bit humility from some o these fellas would not go amiss
For those that don’t get the drug reference here you go.
http://www.youtube.com/watch?v=WwylBRucU7w
!!Bada Bing!! on 3 April, 2012 at 19:28 said:
Neither of them is in Salmond’s cabinet.
One of them is Labour, one is a Tory, and they’re both MPs, not MSPs.
You haven’t been paying attention, have you?
The point was that Salmond has never had a Catholic in his cabinet.
so that article about the huns euro licence confirms that the sfa received no audited accounts before the 31st March.
what was the consensus on here about what that means for them playing in the spl/sfl next year? was the 31st no a deadline for that licence too?
Tomorrow’s plan will be pseudo hybrid liquidation.
Evening everyone!
Sorry if this has been posted, but has there been any confirmation of when we will be lifting the trophy (granted we do the business at Killie)?
I understand most believe it to be against the wee huns on the 13th, true?
I am in the states and do not get back until the 4th May, but will glady book it earlier if we can lift the trophy against St Johnstone on the 3rd (although I doubt we will lift it midweek).
Cannot wait to get right behind the team and enjoy a great celebration of what this young team have achieved, and CAN achieve in the future.
It’s good to be one of us!
Hail Hail,
CB
wonkyradar
£695 per hour
nae wonder they`re trying to keep the balls in the air for as long as possible
TC
You starting a poll? :-)
Vote me in ,no to rigged competitions
jihlday at 19.27
The last 3pm Saturday match was in February against Motherwell. I`m desperate enough to blame Sky subscribers! :-)
The team will just have to get to the cup final!
hybrid liquidation
sounds like a new eco-friendly saloon or that stuff the terminator guy was made from
more voodoo economics, as Tommy would say
Even Google can’t get a hit on ‘hybrid liquidation’.
Laurel and Hardy CSC
Psuedo-hybrid-quasi-liquidation. It’s dangerous times we live in Gentlemen.
Now’s who’s holding the Cake?
Having been out for a few hours
(1) Chris McLaughlin’s texts re White-gives-shares-to-Murray were hoaxes? Don’t tell me, the rest of the MSM got it from those same hoaxes? Only in Scotland
(2) So the Louden was real? I assumed it was a P/shop job. Credit to whoever was behind that.
(3) A strange thing happens when you go to the STV link about the UEFA license. There’s a blonde in the top right corner telling you they’ve applied for the license while you’re reading about how UEFA told them last week it was a no-go.
(4) League flag / trophy day. It really doesn’t matter in the end. Part of me thinks these things should be done on the last home game of the season anyway. Hope as many of you as possible get to see it.
Hybrid liquidation?
Is that like a hauf and a hauf?