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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Medtim
the Ticketus deal is a personal arrangement between Whyte and Ticketus
HMRC are biggest creditors by far unless Whyte can show that he is owed more than 15million by Rangers
Hail Hail
coorslad, you may but I don’t
From STV:
Rangers apply for UEFA Club Licence
In effect it says that they can’t be given a license but have applied anyway.
/9 caps
This being the case is yet to be established …. patience
Hail Hail
RogueLeader
Following on from your point re Ticketus and my previous question.
IF Ticketus end up being a creditor to the tune of say £40m and there are another handful of creditors adding up to £10m +.
Also,IF HMRC (excl the BTC) amounts to say £15m,that would mean HMRC owned less than 25% of the total.
If this scenario is possible,I am trying to establish whether HMRC can block a CVA despite having less than 25% of the total
Been busy today and not on CQN…… has there been some mis information, half truths, propaganda …..in short hunguffery going on…. Shock horror, we’re talking about about 130 odd years of ……. Well ye know the rest.
LetthemexpireCSC
V
Raman Bhargboard @STVRanam Reply Retweet Favorite · Open
Administrators also reveal they have spoken to Barca re signing Messi. Lionel not said no, yet.
Getting fed up with all these misleading tweets. Anyone can write rubbish and make like it’s the truth.
medtim on 3 April, 2012 at 15:31 said
For the purposes of a CVA TicketUs are not a creditor.
If the club is liquidated then they will become one.
Phil has a wee update…
have a read bhoys n ghirls…
miki67 at 15:33
Nice one, I do like a Dylan quote on here from time to time.
HH!
medtim – it is not possible to discuss CVAs without talking about the 1000lb Gorilla.
Who will buy them without the big tax case verdict? Nobody.
You can take it to the bank no CVA will be proposed prior to the big tax case verdict hitting so it is a moot point regarding percentages of debt. HMRC will be in the box seat
Medtim et all
You have me worried by bringing a nagging suspicion that I had pushed to teh back of my mind
ie that the Ticketus 24m could have been ‘created’ to alter the balance of creditors.
Removing the HMRC block to CVA by creating a new equation (that reduces their figure below 25%)
I can never get the sums to add up as I do not know which assets go on which side of the balance sheet,
whether stadium and Minty Park are included ,
whether outstanding player salaries ( 75% deductions) to end of season are added ) this number will increase with each passing week.
My worry is that the time spent by Whyte assessing the takeover last year was spent planning such shenanigans .
I suppose all will be revealed soon ( but worry that and we will not like the outcome – starting to sound like Declan there)
Paranoid in Paradise
Onlooker
http://www.channel4.com/news/spl-boss-rules-applied-without-fear-nor-favour
HAIL HAIL
BMCUWP
I played Loudoun, has a hole so short that you can’t miss the green with a three quarter sand wedge, or used to, years ago.
Swiss
another day another dose of crap from laurel&hardy and the corrupt msm.
I have faith in the ghuys who have kept us all informed all along what is happening and do not intend to doubt them now.
My heid is burstin with the garbage that thems, laurel&hardy,msm are spouting.
Loved the post earlier with the Martin Luther King quote, superb.
As Marie Antionette said ” let them eat jelly & ice cream ”
HH
Paul67
you have email
Hail Hail
I’m not old enough yet to pick up my pension therefore I’m not entitled to get it as I don’t meet the requirements. But , eh, gonny gie us it anyway cos………….eh,……….ah want it.
Terrific stand up performance from Neil Doncaster, very funny, has a very dry droll delivery though
The SPL boss rubbished claims that Rangers have, in the past, been shown preferential treatment by Scottish football authorities.
When asked if he recognised a “revolving door” culture between the Old Firm, the SPL and the SFA he replied: “A revolving door culture? What do you mean?”
After some clarification he continued: “I don’t think there’s any cosy relationship between any member club and either the SFA or the SPL.
“I can’t talk for a period before 2009 when I arrived but the people who have been running the league since 1998 – a number of them are still here now – understand, just as I do, the importance of being absolutely neutral, absolutely unbiased and treating everybody equally.
“I’d be astonished if there was any suggestion of any bias or cosy relationship at all in the past – I certainly don’t see any evidence of that at all.”
Great thing about modern journalism: there is no accountability for the veracity of stories or ideas they put to paper. This encourages irresponsible journalism and an anti-zetetic culture that is reduced to the compensations of lazy speculation.
Modern people have no memory.
Feck, even George Michael still passes as a pillar of the community. In a world of amnesia anyone or anything can be rebranded as its opposite.
Hedonism does not make for a clear mind or a reliable memory.
And, amid all this, Mr Ogilvie still has pay of £95k to come from Rangers. Amazing stuff.
Neil Doncaster speaks to Channel 4 News.
He reiterates that any money paid to a player for the playing of football “has to be declared on an SPL contract and registered with the league”.
He goes on to say that if there is a prima facie case against Rangers for breaching the rules it will go before an independent commission.
He adds: “We have 12 clubs in the SPL; each of them is treated absolutely equally. We can’t and don’t side with any member club against any other member club. It would be absolutely wrong to do so.”
He uses the “without fear or favour” phrase. He says the SPL members decide the rules under which they want to be governed, “and then we at the centre apply the rules without fear or favour”.
Raman on the ball .:))))
From RTC poster
Anyone think Raman Bhardwaj is following Chris McLaughlin on Twitter???
11m ago Chris McLaughlin @BBCchrismclaug Reply Retweet Favorite · Open
#Rangers administrators say 4 possibly 5 bids expected tomorrow. BBC understands Brian Kennedy one of the bidders.
6m ago Raman Bhardwaj @STVRaman Reply Retweet Favorite · Open
We understand Brian Kennedy bidding is back on the table…. administrators expect 4 or 5 bids by tomorrow’s deadline
10m ago Chris McLaughlin @BBCchrismclaug Reply Retweet Favorite · Open
#Rangers administrators say talks have taken place with #SPL #SFA and Uefa about consequencies of newco.
5m ago Raman Bhardwaj @STVRaman Reply Retweet Favorite · Open
Administrators also reveal they have spoken to SFA, SPL and UEFA re consequences of a newco
9m ago Chris McLaughlin @BBCchrismclaug Reply Retweet Favorite · Open
BBC understands Craig Whyte has agreed to transfer his shares to Blue Knights consortium. #Rangers
7m ago Raman Bhardwaj @STVRaman Reply Retweet Favorite · Open
Craig Whyte has agreed to sell his shares to Blue Knights consortium, STV has learned
BobbyRussell on 3 April, 2012 at 15:37 said:
Thanks, O.G. (Or should I say, Alex!!!?)
Funny how OG came on the blog round about the time that C4 took an interest :>))))
If we are wrong, no matter, he is a wealth of info all the same.
leftclicktic
or are they both being fed the same lines from MediaHouse and as per usual repeating as fact without any investigation?
Mort
lionroars67
““I don’t think there’s any cosy relationship between any member club and either the SFA or the SPL.”
How can Neil Doncaster speak up for the SFA at this point ?
Especially during ongoing investigations.
WHITEWASH csc
O.G. Rafferty @ 15.12,
Re old bug eyes Whyte, reminds me of a slightly glaikit individual, who used to frequent the Ardrossan chip shop my big sister worked in 20+ years ago.
Due to his lack of visual focus, and the fact that the fryer was at the opposite end of the shop from the till, he was known as having “one eye for the chips, and one for the change”.
Always made me laugh anyway :-)
Hail Hail
HB
These are anodyne comments on the surface, but there are some important things in there. We have been asking just that the rules be applied. He has said on national television that they will be “without fear or favour”.
It would have been good if Channel 4 (it wasn’t Thomo) had asked him what more evidence he needs of a prima facie case against Rangers than what we know already, how long it will take to set up the independent commission and what sort of person will be on it. Time is of the essence, Mr Doncaster.
THE EXILED TIM
OG Rafferty is a long time poster although he had been very quiet up to Alex Thompson’s pieces started appearing.
Mort
http://blogs.channel4.com/alex-thomsons-view/craig-whyte-rangers-liquidation-absolutely-unnecessary/1064
Celtic_First
“Time is of the essence Mr Doncaster”
Would that be aimed at the same Mr Doncaster whose organisation began an investigation into sectarian singing at ibrox on 18th FEBRUARY 2012?
Don’t hold your breath.
THE EXILED TIM, 16:06
I am but a conduit
Surely everyone knows by now that Craig Whyte is in this to make money, not for the good of the club he owns 85% of? Yes, much as it pains the media, he still owns all of those shares that Murray (D) sold to him for £1.
So Craig Whyte is not just going to hand his shares over to someone else, is he? He is not going to give them away. Obvious, isn’t it?
@RhebelRhebel: MSP who wanted to Kill The Tories argues for saving Rangers*His CVA argument will also see the HMRC lose millions http://t.co/GYnRiV5l
Government interference boys.
buying Rangers for a quid was always going to give the buyer a chance of making a right few quid – in reality a life changing, made for life sum – so fair play to Whyte for grabbing the opportunity.
So MBB tells Alex Thomson he isn’t giving his shares to the Blue Knights, is this the same MBB that can’t stop telling lies.
Craig Whyte to Thomo: “All Rangers has to do is live in future within its means, and then it has a future.”
Craig seems to get the money thing, but he really, really, really doesn’t get the Rule Britannia Peepil’s need to ‘win’ at any and all cost.
O.G.Rafferty
Apologies if you have been asked this before.
Do you know if A.T. is in possession of the detail behind rangers being wrongly awarded a UEFA licence for this season?
If he does have this info,do you know if he plans to use it?
Thanks
medtim
Medtim
Well, if he thinks he can say one thing to Channel 4 News and then go off and do something completely different without any comeback he hasn’t been paying enough attention. He has made a public commitment to following the rules. Ask Auldheid if this isn’t progress.