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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A wee bit more digging has found that Liberty Corporate Ltd own 100% of the shares in another company called Liberty Capital Ltd who in turn owns 43% of Merchant Strategic Renewals Plc, 42% of Merchant Turnaround Plc and 100% of The Rangers Football Club Ltd.
So in effect the debenture is owed to itself.
Mort
Paul67
So you are stating that HMRC will not pursue Newco ?
and that UEFA will tolerate the SFA and SPL modifying their rules to accommodate a Newco ?
No litigation because Rangers FC as we know it would cease to exist ?
Hail Hail
Mort on 3 April, 2012 at 13:44,
Sounds like someone’s taking a Liberty:-)
tigertim on 3 April, 2012 at 13:08 said:
I heard it and like you I reckon the end is nigh for Mr K but I think he is ready for it himself. His ignorance of the issues at play does neither himself or football any favours. I noticed Mr Traynor was also absent, in Oz apparently. Funny that, jsut when the succulent gravy train is about to hit the buffers. Just what hold does SDM have over him?
sparkleghirl
It just means that Liberty Corporate Ltd now are secured creditors but as my previous post states, all the companies are in effect one and the same but legally distinct so CW can liquidate Rangers Plc (In Adminstration) and still hold onto the assets through this other company.
Mort
CaltonTongues
Indeed!
Mort
Warm balls- Is that a disease?
like I said – can’t take credit for finding the MG01 – was “easyjambo” on RTC who posted it.
What a tangled web Our Hero weaves……
I don’t suppose this Liberty group is preferred creditor? So that in the event of liquidation, they hold Ibrox & Murray park?
What I mean is, RFC would still hold Ibrox & Murray partk? Yet int he even of liquidation, RFC would not longer exist?
I can’t do this any more……
Auldheid-Like T4,I posted similar a few weeks back.The huns in SPL 2 might appease the smaller clubs in SFL to get a bit more money in.A TV deal with BBC,STV might also be on the cards.I think we are about to see existing rules(the ones which are currently being ignored) and any ones which could be used to punish the huns retrospectively ,will be quickly ripped up and new ones which can’t implicate them for their “previous”,are currently being drawn up.
“I see dead football clubs”
Mort, thanks just saw your answer above.
So, this means that as we suspected, CW holds the main assets in the event of liquidation? Is there any more to it than that?
And now the end is near, and so they face the final curtain.
Interesting that “L” word has begun to enter the consciousness of MSM, we now enter the process of weeks, maybe months of the dissemination of information like
“liquidation will be like signing a new player”.
The Tickle Us bit, will be how they manage to wangle their way into the SPL next season.
Declan CSC
would Whyte’s status as the one & only secured creditor likely to be the subject of a legal challenge ?
“We’re going to need a bigger….gloat”
sparkleghirl
I think there is far more to it than meets the eye.
Mort
Mort-As you read it,is there any significance to Wednesday’s Duff &Duffer deadline,and this MG01?HH.
bankiebhoy1 on 3 April, 2012 at 13:50 said:
“I see dead football clubs”
…………………………….
After the court cases :>)))
Everything Whyte has done since he handed over a £1 has been for the benefit of Craig Thomas Whyte.
I cannot see this being any different. The best bit is what is best for Whyte is worst for Rangers.
I predict a run on Jelly & Ice Cream soon
C Timisoara and Gloria Bistrita in deep fall to third Romanian league
May 31 2011
Marian Iancu received a hard slap from the FRF: his team FC Timisoara was kicked out of the first football elite and relegated to third Romanian league
A hard hit for two romanian football teams, FC Timisoara and Gloria Bistrita, who were denied the licence for the 2011-2012 season to perform in the first league. Furthermore the two squads were relegated back to League 3.
The announcement which came on Tuesday during a press conference, was made by the president of the RFF Board of Appeals, Alexandru Micu, who wanted to emphasize that that decisions are final.
FC Timisoara and Gloria did not receive a license for next season of League 1. The decisions are final and irevokable and the two clubs are relegated to League 3″, revealed Micu.
Head of licensing department of the FRF, Viorel Duru, explained the reasons why the two teams have not been licensed.
“FC Timisoara divided and separated from the assets, plus the club has debts to the state budget and Benfica Lisbon. On the other hand, Gloria has large debts to the state budget,” Duru said.
Initially the Commission granted the licenses to Timisoara and Bistrita but Viorel Duru contested this decision and the Appeals Board responded positive to the contestation.
In these circumstances, Romania will be represented in the Champions League by Otelul Galati and FC Vaslui, whereas in the Europa League will go Steaua, Rapid, Dinamo and Gaz Metan Medias.
At the bottom of the rank, Sportul Studentesc (No. 18) will be the only one of the officially relegated teams to remain in Ligue 1. Universitatea Craiova (No. 15), Victoria Branesti (16th) and Urziceni (17th place) will be relegated to second league because they have got no license either. Thus, from the second league will promote not 4 but 5 teams, to fill the vacant place.
“Build it and they will not come”
ET….
:)
After the court cases….
” I Predict A Riot”
…well, they d have ‘previous’!
“May the farce be with you”
Some chump on RM is asking other posts whether or not there is a Rankers Supporters Club in North Korea- in fairness they probably receive more media transparency than we get here in Scotia.
Yu Gun Bust RSC .
“BT phone home” :-)
Is Thomas Whyte another psuedonym of Craig Thomas Whyte/White?
Courtesy of slimshady on RTC.
“According to the records this company was about to be struck off last year but it has since been acquired (don’t know when) by Capital Shopping Centres Group PLC which is a business of substance, owning Braehead, Lakeside and numerous other big shopping centres.
Rangers FC Group Ltd also appears now to be a subsidiary of this group.
This is truly a web of gargantuan proportions being woven.
It seems that one subsidiary of a shopping centre group now owns Ibrox & Murray Park whilst another has a fixed & floating charge over them
Forget switcheroo, looks Craigy has just done an old fashioned runner
54 (shopping days) to 0 (liquidation) – at most”
I think you can dress up the Rangers situation as much as you like there is no one out there prepared to invest the required amount of money to put them back on an even keel as they know the large taxcase is looming.Whatever happens and imo it will be liquidation they have to deal with Craig Whyte who has had a plan from the outset. Ther are two sets of people who can make money out of the current situation they are Craig Whyte and also the administrators everyone else is on plums.H.H..
“conned…James conned”
tomthelennytim
Braehead near Paisley … I wonder if any St. Mirren directors are in partnership with Messrs Whyte
Hail Hail
tomthelennytim on 3 April, 2012 at 14:02 said:
It seems that one subsidiary of a shopping centre group now owns Ibrox & Murray Park whilst another has a fixed & floating charge over them
Holy fek, it’s not going to be as ASDA at all….
Wonkyradar – they can apply to Kim Jong Un who is the local RST chairman. I believe he’s a bit of a wrong ‘un.
tomthelennytim,
Ignore that post – turns out to be a confusion of companies with Liberty in the name. The shopping centre folk have nothing to do with Craig Whyte’s web of companies.
CIRENCELT,assumimg yer still around.
Not sure about the situation wi The Tap and Barrel,stopped going in there after an unfortunate incident when Henrik scored against us in 2004.
Pretty sure the game will be on in The High Street Club,though.
Members and guests only,etc,so if you turn up at the door-hope you do,it would be a pleasure to meet you!-ask for Des.
I’ll tip him off in advance.
The other option for you would be to somehow(!) contact CELTFISH who lives in Fairford. He might also be able to provide transport.
If you do make it past the security on Saturday,haha,mine’s a lager!
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
Are you a Gillespie ?
Mort on 3 April, 2012 at 13:47 said:
Spot on, this has been public knowledge, for those who wished to find it, ever since Uncle Craig paid over the Pound.
Problem is, with the constant updating of rumours and speculations, this vital piece of information is being overlooked.
Capital Shopping Centres Group PLC is nothing to do with Liberty Corporate Ltd.
This has been discussed and discovered before.
All to do with Whyte’s penchant for naming companies with similar names to other very successful companies.
More obfuscation.