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.
To read CQN Magazine go to the dedicated site the graphic below is just an overview.
Thanks to everyone who has bought a hard copy of issue 7. Order your copy for delivery by clicking on the link below for news and views from Celtic supporters.
Pay by card or Paypal.
710 Comments- Pages:
- «
- 1
- ...
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- »
I think it’s more like a steak smoothie?
Vmhan Supporting Lenny! on 3 April, 2012 at 19:24 said:
I would love to know Celtic’s take on all of this bending of rules to save the Hun.
Surely Celtic are not happy after years of cheating our club out of money.
A boycott and a statement from our club saying we will serve notice will make this corrupt bunch we won’t accept anything less than integrity to be applied.
Chris rockin’ the science…
Its extinction Dawell but not as you’d know it.
V
Maybe the SNP have yet to find a Catholic good enough to play for their cabinet!
I am away for first two games after split so will be happy if we get the trophy against Hearts.
Would be even happier if no Hearts fans bought tickets and we didn’t have to listen to their bile on such a happy day!
great call on snyde
dawell is one hurtin hun
Kin we no huv Rangers playing 20 home games and Celtic 19- is rat no fair? Its aw pure taig bias so it iz…where do these people live- how do they function in the real world?
“how would you feel if you bankrupted a club?” Dawyl…
These Barca / AC Milan players need to stop blessing themselves….. They’ll upset the bhuns……
HT @ 19.48
┈┈┈┈┈┈▕▔╲┈┈┈┈┈┈
┈┈┈┈┈┈┈▏▕┈ⓈⓊⓅⒺⓇ
┈┈┈┈┈┈┈▏▕▂▂▂┈┈┈
▂▂▂▂▂▂╱┈▕▂▂▂▏┈┈
▉▉▉▉▉┈┈┈▕▂▂▂▏┈┈
▉▉▉▉▉┈┈┈▕▂▂▂▏┈┈
▔▔▔▔▔▔╲▂▕▂▂▂▏┈┈
Messi misses …………………..
*sitting back shocked*
Fish neck and brass eye…
Bourne
One day gonnae explain really, really slowly how to do that?! :-)
miki67 on 3 April, 2012 at 19:25 said:
My missus just said that ‘Ticketus’ sounds like a STD !
___________________________________________
I hear it’s possible to get rid of an STD tho !
What is Liberty Corporate? A complex legal and corporate structure? Late accounts and striking off. Mr Whyte likes to keep things simple, doesn’t he?
http://scotslawthoughts.wordpress.com/2012/04/03/what-is-liberty-corporate-and-why-does-the-rangers-fc-group-ltd-owe-it-money/
pen barca
Magnificentseven-I know,enjoy the game mate.HH
Ernie-I should have known better to get involved in one of your boring SNP arguments.
messi must have backedhimself not to score first…then he just did
ianinascoli on 3 April, 2012 at 19:38 said:
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
Thanks for the response.
It’s a poor bloody show though. Isn’t it!
Hail Hail!
bada bing
it`s only boring cause you cannae refute the allegations raised
Marvellous Messi ! Penalty = youngest ever player to score 50 in Champions League.
Dawell just disnae get it.
Huns and morality just don’t go. Its intrinsically alien to them.
messi 2/1 first goal
finding money in the street
Did a crazy bet, Milan, Marseille & Benfica.
If it comes in i’ll be retiring!
….looks like i’ll be working a bit longer then!
Just logged in friends, not read back.
Heard people discussing the Louden in work but didn’t catch on.
Can anyone tell me what the deal is?
Also, for fight fans who don’t have Sky to watch Barca like myself, there is a great programme on Radio 5 just now about the 4 kings, Hagler, Leonard, Hearns and Duran.
TJ
Cant see anything on official WBA website about a rejected bid for Naismith.
Funny that!
PF ayr-I should have stayed out of it,nothing to do with refuting any allegations.Lost interest in politics a while ago.HH
Tommy Joad
Someone posted a pic of the Louden painted green. yes, green. I thought it was a photoshop joke but apparently it was real, though it’s being er, fixed, now.
Serge on 3 April, 2012 at 20:05 said:
….looks like i’ll be working a bit longer then!
Brilliant :>))))
Serge
Get the passport looked out
1-1
Game on!
T4
dreadful Barca defending 1-1
Milan were getting humped ..score with their first piece of meaningful possession
Kojo, any investor in the G.A. is going to struggle big time to get A R.O.I.
starry plough, “hybrid liquidation” surely nonsense like this is not being pushed/.
CentenaryBhoy, trophy presentation will take place against Hearts on 13 May.
ernie lynch, 19:43, ho, ho!
hamiltontim , ha! That old chestnut……..
milan would go through on away goals rule,but only if they shoot Messi..
How much hunguffery can be crammed into the gaping hole of this maladminstration? Its sickening in its clovenfooted gloss; it could have been forged in tartarus and polished by the devils minions. Its as bright and distracting as a new counterfeit coin. Its all hyperbole on big fat neon stilts. Decoys and deflections. How many faces have these shufflers got- they make the Pharisees look like children at their first day of school. It seems to be April Fools every morning at the Bigot Dome. The Macchievelian machinations of this peckinsniff double act is making the Canterbury Tales look like a kids Nursery Rhyme.
Set free the Truth and let it banish every shadow in which the sons of darkness hide.