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.
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Anyone think Cuellar would do a job for us. Out of contract end of the season. Just read he has been linked with O’neills Sunderland.
The Honest Mistake loves being first,
Ticketus has said they have no security, just guarantees from Craig Whyte.
Looks like the assets will end up with Liberty Corporate and not Liberty Capital, as I said earlier. See these folk with multiple companies …
Now Liberty Corporate is registered in the UK It’s directors are other companies and one Thomas Whyte, who is 64.
Is he a relation? Is Craig Whyte’s masterplan to give the huns to his dad??
TTTT
Well I’ll be on the piste and most definitely après-piste.
MWD
LiviBhoy on 3 April, 2012 at 13:02 said:
Silver City Neil Lennon on 3 April, 2012 at 12:58
The ever helpful Rangerstaxcase has just said that is his expectation. Rangers will go into liquidation after the end of the season.
TTTT
If your happy to just accept it.
It will most definately happen.
At that point anyone still following FSPL should sign off their CQN posts with MAD.
MWD
interesting wee snippet on the free duedil site (limited info) for Liberty Corporate Ltd
does this refer to 37% shares in Merchant Corporate or that Merchant Corporate own 37% of Liberty Coporate ltd?
INVESTMENTS
OWNERSHIP COMPANY
37.72%
Merchant Corporate Recover
Timing of this being lodged is interesting to say the least…..
Curiousor and curiousor
The MG01 filed with companies house on 26 March 2012 was on behalf of The Rangers Football Club Limited (formerly Wavetower) and holding company of Rangers Plc (In Administration).
It simply states that a Debenture (i.e. a loan fixed to all assets of the company) has transferred ownership to a company called LIBERTY CORPORATE LTD with a resgistered office in London and one sole director by the name of Thomas Whyte.
This means that Liberty Corporate Ltd are now the secured creditors.
Mort
It amazes me that the death rattle has been heard for months now and yet… the Scottish media have maintained a drip feed release of realisation that things are awry – YET – have kept an almost seamless portrayal of Craig Whyte as being the biggest bogey man in the history of football malfeasance since records began.
A patsy. Possibly a very rich patsy. But a patsy all the same.
I had to wait 2 weeks – 14 days – to find out that Brian Kennedy had bid in total £5m for his ‘beloved institution’ – seriously?
The press in this country. The clique that is the sports press. You know those gadabouts who rush off on European ‘jaunts’ regaling the idiom that ‘what happens abroad stays abroad’? Those happy few. They know who they are. Are realising the golden days aren’t just postponed. They’re gone. And yet they still pander to the mythos of Borrow Borrow FC.
The whole mess deserves to die together. Finally.
Wonder if Spiers has first dibs on that biography…?
U
Kayal33 on 3 April, 2012 at 12:46 said:
Who votes them in is not as clear cut as Keevins punts it. Read all about here.
http://kerrydalestreet.co.uk/topic/8658278/1/
It is long but informative of Doncasters attitude. The author of the orginal letter was MWD of CQN.
Paul67
Just read your article.
For Newco to play in any league they need to have a license
The SPL rules are clear .. you owe the taxman no license
So the SPL will need to change its rules indirect contradiction to the FFP rules about owing the taxman.
Can the SPL do this ?
If they do do this what would be the repercussions for Scottish football with regards to UEFA accepting this ?
Could we be in a scenario where a Newco hun will not be allowed into the SPL until it has paid off the taxman …. in other words the SFL would only be contravening UEFA …. again would UEFA care at this level ?
Well as long as Rangers did not win the Scottish league cup which has no entry into Europe and that competition remains dormant to European entry or the Scottish cup and if they did then they couldn´t play in Europe due to owing the taxman and therefore no license ?
I do believe that this will be the blueprint .. how apt … for all clubs in the future to avoid paying their debts.
If Uefa dont come down on this then I will be finished with professional football for sure.
Hail Hail
philvisreturns on 3 April, 2012 at 12:51 said:
Declan – everybody thought white was a billionaire business mongol
I’m going to buy your book when it comes out on Kindle. (thumbsup)
It won’t be on Kindle, more likely Fisher Price
ulysses mcghee – The best part was when Sir David Murray said he had been “duped” by Craig Whyte.
I was reminded of The Simpsons episode where Fat Tony and the rest of the local mafia testify in court that 10 year old Bart Simpson was the head of their crime syndicate. (thumbsup)
Mort
This’ll be the fabled London Office of the Rangers !
Serge on 3 April, 2012 at 12:29 said:
yup
Oh well no Celtic talk im offski ;-)
john anthony on 3 April, 2012 at 13:05 said:
They are under a cyber attack, like our own blog a while back. They are up and running again though here,
http://rangerstaxcase.wordpress.com/2012/04/03/we-dont-do-walking-away-either/comment-page-3/#comment-75754
tommytwiststommyturns on 3 April, 2012 at 12:46 said:
Yup I thought it a strong possibility at the time and Celtic have said they would not be against it.
If it happened that way and Rangers were stripped of titles if they broke registration rules, or (if no registration chicanery) lost the 2003 and 2005 titles for using illegal means to boost their playing squad and of course no UEFA cash for three years, I think that would be a pill a lot easier to swallow.
Justice and integrity both served.,
awe_naw
Newco won’t owe the taxman ?
The Honest Mistake (12:54), who else would have them?
Nobody else wanted Aluko when Aberdeen kicked him out. And the other three would be hard pressed to get any team above mid table in the Championship, so with the money saved by the disposal of McGregor, Davis, Edu, etc., they’d probably be able to get a good enough deal to keep them at NewCo, as it’s new A list players.
Gordon_J (13:13) said: “Rangers Tax Case was hacked and is down”
…unlike their players, who go down without being hacked.
Mountain_Bhoy is Neil Lennon,
I read that as Liberty Corporate owns a chunk of Mechant Corporate.
Awe Naw
Plenty experience, + the huns would be fuming.
I mean….The huns would be fuming….+ plenty experience
Anybody see the “mysterious” disease sweeping through Uganda on the BBC News?
Its called “Nodding Syndrome” and leaves children with seizures, trance-like states, and severely impairing physical and mental development.
Totally heartbreaking stuff.
Whats the odds the parent company is now liquidated before the club?
.
BlantyreTim..
Forget Physio (Hands on) it will Probs Just Flare it Up..
Summa
Gerry, fascinating development. I assume Thomas Whyte is Our Hero’s father.
Completely didn’t expect this one.
Awe Naw, Newco (which probably already exists as a corporate entity) will not owe the tax man anything.
SPL 2 I would imagine will have the same financial restrictions as SPL 1 which must adhere to UEFA´s FFP.
I am of the opinion that any country that acts defiantly to this especially such a big footballing nation as Scotland will get kicked out immediately.
Hail Hail
So if Thomas Whyte is the construction worker and Craig Whyte is the cowboy …
Awe Naw (13:27), NewCo will be debt free and owe the taxman nothing. Rangers FC will no longer exist. The whole point of RFC(IA) going into liquidation is to get out of having to repay their debts.
If RFC continues in it’s current legal guise following an AVC, then your questions are pertinent.
Paul67 on 3 April, 2012 at 13:34 said:
Gerry, fascinating development. I assume Thomas Whyte is Our Hero’s father.
Paul67,
You assume correctly and he’s a right HUN:-)
Now if MBBCW had transferred ownership to his (soon to be ex-) mother-in-law, that I could understand.
But to his Dad?
Go figure …
MWD/Joe – never said I was happy to accept it, just that it’s the only “practical solution” to the problems caused by the cheats who have taken Rankers to the point of extinction.
Most of the clubs in the SPL are barely solvent and will be in a panic about losing revenue from home games against THEM and greatly reduced TV income. We also shouldn’t underestimate the influence of a certain bank that currently extends credit facilities to the majority of those clubs!
My natural inclination is for our club to get the hell out of this stinking mess, but while we’re stuck here, then we can’t ignore a chance to restructure the whole senior game in this country.
New single governing body, clearout of the blazers, new realistic league structure….will it happen? Answers on a postcard to Mr C Whyte, British Virgin Islands !
T4
Mort, you seem to understand a fair bit about this comany law and stuff – what does the transfer of this loan actually mean?
And there’s that figure 37% again. I’m going to do a euromillones today with that as one of my numbers
Good to see Declan back offering his pinblunt bizness annalisiss.
Celtic heading to Norwich 22nd May for testimonial..
Perhaps now is the time to be vigilant.
A lot seems to be happening at the same time, perhaps to muddy the waters:
Rumours of liquidation before Friday.
Rumours of a Creditors Meeting on the 20th.
Deadline for bids tomorrow.
Switcheroo of charges.
Thomas Whyte steps forward.
RTC “under cyber attack”.
Mainstream media talk openly about liquidation.
Blue Knight and Ticketus Join forces.
Keith Union Jackson Keich
What’s the vital information here?
“Jail ra lot o’ thum!”
Moonbeams WD. Kano 1000 \o/ Supporting Neil Lennon 100%. Eating Jelly & Ice Cream. Awe Naw… on 3 April, 2012 at 12:59 said:
Aye. I have tried to raise awareness again about Doncaster on KDS using your efforts.
http://kerrydalestreet.co.uk/topic/8658278/1/