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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79caps on 3 April, 2012 at 14:29 said:
It is about time UEFA made a statement. They know what is going on and must be alarmed at the SFA’s failure to provide a lead to the SPL and Rangers on what the rules state and what value UEFA place on sporting integrity. (Paul blogged about it a week or two ago)
So no physical meeting of creditors on 20th. And no CVA or any other proposal to exit administration.
As you were then. We will keep picking up our fees for a while longer, thank you very much.
Re Huns’ UEFA licence application: Is it like applying for your Road Tax (sic) without an insurance certificate and an MoT?
It did occur to me that it was only stated that the 2 weeks grace applied to the submission of the correct accounts, not on the application itself. If they hadn’t applied before the deadline, the 2 weeks grace to provide documentation would count for nothing.
If our Irish Bhoys are looking for entertainment over Easter weekend,here are some gigs that would be worth going to.
Fianna at Dungloe Bar,Derry,Saturday.
Fianna at Derrytresk GAA,Clonoe,Sunday.
Fianna at 134 Trust,New Lodge,Belfast,Monday.
Plenty of Rebs.,and Jelly & Ice Cream.
Wear your Easter Lily with pride.Slan
I have made a bid for Dolly Parton. This is to be kept away from the MSM as it is a secret. Christina Hendriks is also up for grabs (isn’t she just!) but that also is a secret. BBC Scotland do not favour Rangers. Neither does STV, although they are in some form of partnership. Succulent lamb prices are down, as the main consumers are off their food/rocker (take you pick). declan is the reason James Joyce wrote Finnegan’s Wake to drive us all mad, after having the Eartha Kitt beat out of him with plums. Howdya like them apples?
Bobby
are you a Gillespie ?
PrimalScreamCSC
I believe CW should be dipped in bronze–or whatever bits are left of him after the folly folly orcs have caught up with him–and raised as a statue somewhere and lauded as a great & accidental lizard-king Celt. For he has achieved,on the back of Wizard Minty,our greatest wish : that Rankers rot in a foul swamp of their own creation. To have lived to see these days has been a vindication of the meaning of “always look on the bright side of life.”
I say the following with sincerity and respect:
Paul 67,when this saga ends (and it will) you really must write a book,so that future generations can refer to it and marvel at the utter vanity and outright stupidity of that ultra-violent horde from Govan.
Fanadpatriot,I shall be celebrating Celtic winning the league with Fianna,its the launch of Kellysmen CD..In the Dunloe bar…
Re that book. I hope someone’s already started, because by the time it’s all over, some of the laughs along the way may well have been forgotten. Like them pay-palling that bluenose clown, for one.
92 year old murdered in own home with “severe head injuries”- what the feck is the world coming to?
AWE NAW 1408
No,but that is a pretty spooky guess.
HT and TET,amongst others,will be able to provide you with my e-mail address-if they are ok with that.
It has my surname on it.
His surname is WINKLEPICKERS strange but true…
STV now backtracking on the shares to the Blue Knights story
Hamilton tim
its not related to his man hood ? ;-)
Hail Hail
Coorslad 14.47
That’s right,should be a good night,won’t manage myself,will be in the Atlantic/Guest House .Ask Sean,for Jelly & Ice Cream.TAL.
Auld Neil Lennon heid on 3 April, 2012 at 14:41 said:
79caps on 3 April, 2012 at 14:29 said:
It is about time UEFA made a statement. They know what is going on and must be alarmed at the SFA’s failure to provide a lead to the SPL and Rangers on what the rules state and what value UEFA place on sporting integrity. (Paul blogged about it a week or two ago)
====================================
I think they would wait on the home body making some statement at present there is none. The idea that the SFA & the SPL await the decision on the FTT is abhorrent. The two cases are distinct and should be treated as such. One involves tax evasion the other various rule breaches. Some may some these are minor, however, for the integrity and (dare I say it) “dignity” of Scottish Football they must be seen to act before the FTT, not in response to the verdict. Again their silence and incalcetrance on this matter is damning.
Truculent Spam.
Awe_Naw_No_Annoni_Oan_Anaw_Noo on 3 April, 2012 at 14:39 said:
UEFA rules are explicit on reasons to refuse a licence and non audited accounts by 31st March is one, as is unpaid tax (the VAT/PAYE etc from May). In any case the uncertainty about who will emerge from administration, oldco or newco and the time that will take to be sorted out will make UEFA unwilling to say yes. The best Rangers could get would be wait and see who/what we are dealing with.
On the club licence my view is the SFA are the licence issuing body but what they do if criteria (like audited and ratified accounts are not provided – and they cannot be so no grace period) are not met is discretionary, so god knows what they would decide is appropriate. But one thing for sure is that they will not withdraw the licence because it would mean no business to sell.
The SFA rules say the following and it looks like they are choosing not to apply them.
2.2 Licensing Committee
The Licensing Committee is one of the Scottish FA’s Committees and its powers are detailed in the Scottish FA Board’s Protocol. The powers, duties and operations of the Licensing Committee in terms of club licensing are as follows:
The Licensing Committee is the first instance body that decides whether a Licence should be issued to a club or not and at which level this license shall be awarded. This decision will be based on the documents provided by the Licensing Administration and be in accordance with the provisions of the Club Licensing Manual;
The Licensing Committee shall decide what measures to impose on clubs that fail to submit Licensing documents in a timely and accurate manner, or that fail to cooperate with the Licensing Committee or the Licensing Administration;
Each member of the Licensing Committee shall have one vote and the Chairman shall, in the event of a tie, have a casting vote.
The Licensing Committee shall specify its decisions in writing and provide the reasons for these decisions.
A Licence may be withdrawn during a season by the Licensing Committee if the club:
No longer satisfies any single condition for issuing the Licence;
Violates any of its obligations under the Club Licensing Manual;
“suffers or is subject to an insolvency event” Article 15.1 (g);
The Licensing Committee will have the authority to review Licensing criteria and to recommend amendments to the Board;
Furthermore the procedures for the management of this decision-making body are detailed within the “Procedure for the Management of the Decision Making Bodies” within the Club Licensing Quality Manual.
3.8 Withdrawal of a Licence or an adjustment of the award
A licence may be withdrawn or adjusted after it has been awarded by the Scottish FA if the licence applicant:
• Is presented for its winding up or where the member club in question shall convene a meeting to pass a resolution for voluntary winding up or shall enter into any form of liquidation.;
• No longer satisfies any single condition for issuing the Licence; (like ratified accounts at entry level)
• Violates any of its obligations under the Club Licensing Manual;
Awe Naw
It would be impolite and reckless in the extreme to pass comment! :-)
Rights bhoys, I’m bored and need some entertainment.
What’s your team of the season…
Forster
Mathews-Rogne-Charlie-Ledley
Forrest – Brown – Wanyama – Sammy
Stokes – Hooper
Subs – Kayal – Ki – K Wilson – McGeough – Cha
Right I’m off to Park de Paradise to collect some tickets.
Think I’ll have a wee gander at the Louden on the route home!!
The Falcon on 3 April, 2012 at 14:38 said:
BBC’s Chris McLaughlin is the new succulent lamber in chief. The amount of piffle the man comes away with is staggering.
Absolutely!! a thoroughly discredited organisation is BBC Sport Scotland
Mark Daly demolition job on Craig Whyte with information and motivation all from the old Rankers board Mark Daly now Rankers media hero, whilst BBC Scotland continue to ignore Sir Moonbeams, will Mark Daly ever do the big investigation
Sir Moonbeams, the EBT’S, the dodgy bank deals, players with two contracts, what a program what a story, all ignored by the BBC
Anyone got a Louden link.
DJBEE
only square sliced down that way at the moment !!!
Hail Hail
i can almost taste how succulent that lamb is…
Chris McLaughlin @BBCchrismclaug Reply Retweet Favorite · Open
#Rangers administrators believed CW had agreed to sell to Blue Knights, after speaking to CW, he says no. Says he will not be barrier.
Grant Russell@STVGrant
On Whyte share confusion, Rangers admin say he won’t stand in way of deal with any party. Whyte has now said he won’t sell to Paul Murray.
Raman Bhardwaj@STVRamanReply
For clarity: RFC administrators told us Whyte would not stand in way of any bidder. Whyte has since said he will not sell to Paul Murray
are the administrators releasing information to the gullable scottish press to try to make the ‘best and final offers’ process appear more appealing than it is?
Do you not think if UEFA were going to get involved it would’ve happened by now ?
DJBEE 1501
Afraid it is described as a fairly flat parkland course.
Nowhere near the coast.
.
Declan @DeclanCQM
Reply RetwatedRetwat
Delete
FavoritedFavorite · Close Open Details Craig tommy Whyte tells ma mate any notions he’s shelling his stairs to PM is ” absolute nontense.” More to Forrow if ma big mate retwats me
Summa
Vinibhoy:
Still not entirely convinced by Matthews. He is very young and has massive potential but he seems to have had a crisis of confidence in the last few months. Very ambivalent about going to the byline and very timid defensively. Still a bit puzzled as to why he put out of form Matthews at left back against the huns rather than Izzy or even Blackman ( who people seemed to be writing off already).
Personally I would sell Ki and bring in a more forward thinking player. I like Ki and think he is very tidy player but I don’t think he suits the Scottish clawhammer game.
Still think we have a very good YOUNG squad with huge potential. Things will only get better.
PS
Can’t believe some folk were saying Wigan or Wolves are better than us last week. We are a fickle bunch.
Some clarification please.
It looks likely thems will attempt a CVA.
From my (limited) understanding of the process,for a CVA to go ahead it requires 75% of total monies owed to UNSECURED creditors to vote in favour.
IE IF whyte is confirmed as a SECURED creditor,he doesn’t have a vote…..correct??
The BIG QUESTION from me.
IF IF IF the HMRC’s “share” of the monies owed is less than 25% of the total (assuming NO result from BTC) do they still have the power to block a CVA?
I am sure you will see where I am going with this!
Thanks in advance
Jeezo , how in the name of god can anyone follow whats going on with this. I think wee craigy is not the dumpling a lot of us thought . i will stay very wary of this guy , and deep down i have the feeling we maybe should get ready for a wake up call . Can any of you lawyer types on here answer me this . Is a lot of what has gone on at rfc not been illegal , and if it has, why are the proper authorities not taking a greater interest .
jimtim
HENRIK 1503
IMO,they can’t act on conjecture.
They will wait and see what happens,and veto it if they see fit.
Equally,I’m sure they have privately reminded the SFA of their responsibilities.
At least,I blinkin’ hope so!
medtim
who is owed more than HMRC ?
Hail Hail
BOBBY MURDOCH’S
I know a guy who left Kilwinning to go down south near Swindon I thought it might have been you !!!
Hail Hail
lionroars67 on 3 April, 2012 at 14:59 said:
Spot on, they all go after Whyte to try and save their beloved Rangers but not one of them have the balls to go after Minty.
Shug Keevins says I wish Celtic fans would stop phoning in about the taxcase untill it’s findings.
For moths now all they go on about is how bad CW is on the phone ins but you don’t hear shuggie boy asking people to stop phoning in and going on about Whyte.
UEFA only go for soft targets like Celtic. Their fines were a joke. One flare and a banner? I know it should not have happened, but looking at fans of other teams in their jurisdiction they get away with rioting and practically setting fire to places. Sometimes the board need to be more macho on this. Just accepting it means they pick on you again and again to show they mean business in policing football. Remember the plastic bottle being thown onto the pitch (one!) and Celtic being fined? The SFA take the piss as well—the FPLG and Butcher mouthing off, and our manager being polite and considerate. Who gets pulled up?
There’ll be more from Alex Thomson on Whyte on the Channel 4 news site this afternoon