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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Declan, as ever, it is hard to argue with you.
Serge, I have.
Por Cierto, thank you.
Auldheid, good shout.
St Martin’s Bhoy, I don’t see anything wrong with the SFA waiting for matters to unravel. It would save the potential embarrassment of fining a club and being turned into an unsecured creditor.
philvisreturns, is that you trying to start off a property rights rammy:?
BobbyRussell – There’s no way that our Declan is a hun. (thumbsup)
Kit
How do the Chinese-Irish pronounce it?
:-)
MWD
Stan Winer Between the Lies
Maine in the Bay of Havana on 15 February 1898, is a good place to start. The extraordinary circumstances surrounding that affair were a harbinger of conspiracy and cover-up in the corridors of power — the filth of an age turned unheroic — which would find resonance in many of the most important military operations of the twentieth century and beyond.
Well before disaster struck the Maine, an anti-Spanish campaign had been supported by US businessmen who had major investments in Cuba and were keen on ousting the Spaniards. But the public was not interested, and neither were journalists. When the Maine sank, however, press baron William Randolph Hearst, proprietor of the New York Journal, immediately accused the Spaniards of having mined its hull and denounced Spanish barbarism and “death camps”. The popular press, without a shred of evidence to back their claims, followed suit.
“Remember the Maine. To Hell with Spain”, they exclaimed, calling for vengeance and devoting full pages of their newspapers every day for months to the subject. Sales of the Journal soared from 30,000 to 400,000, and then regularly topped a million.
United States president William McKinley, bowing to public pressure, declared war on Spain. The sinking of the Maine became the US’s justification for its annexation of Cuba, Puerto Rico, the Philippines and the island of Guam. Thirteen years later a commission of inquiry found that the explosion on the Maine had in fact been caused by an accident aboard the ship – something that was deliberately kept quiet in the intervening years.
TTTT
I’ll not be squalling it!
MWD
Hi Paul,
Thanks for the update & Insight.
Must say your medium term prognosis seems spot on, even the best case scenario will mean a rude awakening for R@ngers supporters dreaming about a victorious new order.
Still I think we might be seeing the final chapter for our hero, I get the feeling he doesn’t fancy hanging round Ibrox for the next 99 years.
Hail Hail
philvisreturns. Craig Whyte is a clever bloke he has had a plan right since the outset and his plan is still on course.He also is a brave wee guy for there are many angry bears ou there.He is also a handsome wee bugged eyed bloke ok thats a taking it a bit to far.However,he is my hero right up there with Fergus the bunnet. H.H.;- )
The Two Huns on Bargain Hunt got kicked out for stealing.
mwd
hun.
LiviBhoy on 3 April, 2012 at 12:23 said:
Why is the large tax case still dragging on?
The hearings were meant to finish in November but the time alocated was used up. The next available time was in January, putting everything 2 months back. Some suspect Murray overwhelmed the tribunal with evidence on purpose. They think he knew CW wanted the result of the BTC to put Rangers under. That would have all the grief heading towards Murray. As it has turned out CW is getting it in the neck with a few voices reminding people of the previous owner’s involvement.
Lennybhoy
Must do it myself for next season, Not sure what number though. 7? :-) HH
Auldheid
If Celtic allow the SPL to go with A.11 over the purposely written A.14 that covers their present situation without taking legal action then it’s Snowboard lessons for me.
A.14 Transfer of Share covers admin/liquidation and stipulates a general meeting with a majority of 90% to carry.
MWD
Paul67 – is that you trying to start off a property rights rammy:?
Is a man not entitled to the sweat of his brow? (thumbsup)
Paul67.
What do you make of bhassbhoy post @ 12:52, re MG01……..
what does this all mean now?
Silver City Neil Lennon on 3 April, 2012 at 12:58
I hope that they are just riding it out to the end of the season before the implosion. I just have the feeling that they are going to get a deal. I think we have all felt this at least once since they went into administration.
LB
Joe Filippis Haircut – He’s my hero too.
It took Philvis-levels of testicular fortitude for him to face the bears outside Ibrox and tell them to their faces that he had put Rangers in administration.
All these smears and veiled threats being directed at him won’t work. Craig Whyte doesn’t do walking away. (thumbsup)
Does anyone know the reason for the RTC site being down?
Paul67
Aye that name is more famous than anything in our 1st eleven haha. HH
First you think he is just a bampot Hun pretending to be a thick Tim.
Then you start to think that he is a half-smart Tim pretending to be a thick Hun, pretending to be a thick Tim.
Then you become convinced he is a clever Hun ( Oxymoron, I know !) kidding that he is a Tim pretending to be a Hun, spoofing that he is in fact a thick Tim.
Then you realise that he is a comic genius pretending to…………. Ah. F*** it.
He’s certainly too smart for this thick Tim.
Auldheid, don’t know if you heard SSB and Terry last night. Keevins responded that he would need to check with Doncaster whether or not it was to late to register for the SPL.
It has now become obvious, this man is not a liar. He does not use a computer, he cannot Google and he quite obviously does not frequent either this site or RTC.
He still doesn’t realise that as a sports journalist he should know the Rules of the leagues he reports on. Instead of this he mocks Celtic supporters for knowing the rules inside out.
I think the end is nigh for Hugh very soon. Maybe he’ll get a post like Jabbas, part time, every 2 years.
Ok Paul, I’m happy to go with that, thank you.
My last sentence still applies though!
john anthony on 3 April, 2012 at 13:05 said:
Does anyone know the reason for the RTC site being down?
Maybe it has come under attack again. Apparently is was down the other day as well.
MWD – “squall”? What you been eating to cause that build up of wind?!
Not a cat’s chance in hell of the Newco starting in the 3rd division….don’t kid yourself.
T4
As I understand the MG01 it seems to say that everything owned by Rangers FC Group is owed to Liberty Capital.
I’m sure the lawyers here will give a more detailed answer, but to me it looks like an escape route for Whyte.
Rangers FC Group owns 85% of Rangers and everything can then at some stage be passed to Liberty Capital. And we all know who owes Liberty Capital, which is registered in the British Virgin Islands.
Rangers Tax Case was hacked and is down, presumably for maintenance.
A new site is up though, I’m guessing as a temporary measure until the original comes back up.
The New Rangers Tax Case Site
Tommytwiststommyturns. Fella if you are correct and new co start in the SPL that will mark the end of Scottish football as we know it.I believe thousands of fans will stop following it as there would be no point when a team who have cheated everyone in Scottish football for years and also cheated the public are allowed east access to the top league. H.H.
Sales of Incontinence pads in Glasgow are going through the roof.
http://i.imgur.com/HDbMQ.jpg
Paul67 on 3 April, 2012 at 12:55:
On your leader, my impression is that not all bids involve liquidation. Do the blue knights not involve a CVA?
Serge on 3 April, 2012 at 12:58:
Some think I got 18 as it was Neil’s number but it is my birthday date, just coincidence…7 would be a good number…:)
Keep the Faith!
Hail Hail!
Chairbhoy, yes, Our Hero might sell on his investment as soon as it has crystallised.
Philvisreturns, are you a student of Robert Owen?
Gerry, only just got my hands on it. Will go read now. After putting the kettle on. After paying a visit…
Serge, not quite.
St Martin’s Bhoy, I hear you.
I think there’s a new addy for rangertaxcase after they got a DoS attack the other day. Try and copy and paste link below into browser and see if it works.
http://rangerstaxcase.wordpress.com/
Back reading now had to stop as I am sitting in a soft play club in dungloe and had tears coming down my face with laughter after reading Declan at 12:32 nice one mate
Gordon_J backing Neil Lennon on 3 April, 2012 at 13:10 said:
My head is going to explode now.
Does this confirm that Ticketus have no security on their loan?
So rangers go to the wall, closely followed by group.
Sorry rangers creditors (HMRC, JJB etc), there’s nothing left for you to salvage but thanks for giving us more than 50 million pounds.
Sorry group creditors (Ticketus), there’s nothing left for you to salvage but thanks for giving us 24 million pounds.
Libert Capital and Thomas Whyte now own everything?
Doesn’t sound legal or plausible to me.
john anthony on 3 April, 2012 at 13:05 said:
Does anyone know the reason for the RTC site being down?
it is at a different address, google it, you can get it then
Paul67,
some light reading during lunch…….lol
Gordon J, the Mg01 refers to Liberty Corporate Ltd, owned by Thomas Whyte. Not Liberty Capital. http://www.duedil.com/company/05831290/liberty-corporate-ltd
http://www.youtube.com/watch?v=loGZsrN18lk
Posted this on the last thread but in case some missed it, comical gold:
With ir Without You
Keep the Faith!
Hail Hail!
Paul67 – No, but I am a student of history. I believe Mr Owen’s plans for re-organising society along socialist/communitarian lines all ended in miserable but inevitable failure.
The plans differ; the planners are all alike… (thumbsup)