Generic Sevco / Rangers meltdown thread

[ScottB]

I note Greene is offering them an £8million LOAN to keep them going that must be repaid, plus interest, by 2020.

So that alone will cover what he's spending to buy the club more or less?

[stokesmessiah]

"Consequently, on 12 May 2012, the Joint Administrators agreed and signed an offer letter with Sevco (―the Offer Letter‖) and granted Sevco exclusivity to complete a takeover of the Company or a purchase of the Company‘s business and assets by 30 July 2012. Sevco made a payment of £200,000 to the Company for such exclusivity. "

That £1m fee for exclusivity dropped quicker than a Govan girls knickers !!??

[greenginger]

Estimated Outcome Statement


Freehold Property Valuation £ 4,590,214.00

Four and a half million pounds for Ibrox , the car park, Murray Park, you have got to be kidding.

What ever happened to the investigation into Duff and Phelps compromised administration ?

[StevieC]

I read it as £8.3m if you accept .. errr .. minus about £6m in administrators fees and running costs.

They've agreed to sell Rangers place in the SPL to a NewCo for £5m, if the CVA fails (based on discussions with Doncaster no doubt).

For liquidation purposes they've valued all of Rangers assets (stadium, Murray Park, associated land, etc.) at £4.5m.

So basically ..
1) 3p in the pound to exit a CVA
2) less than 1p in the pound to sell SPL place to NewCo
3) bolt for your cash if you want to shut down the Big Hoose.


Option 3) for me please.


EDIT:
They have the BTC listed as an unknown in the CVA but they are saying HMRC are only due £14m in Creditors section (I assume to keep them below the 25%).
Ticketus are being classed as main Creditors at around 46% with the rest being debenture holders, Rangers "friendly" businesses, etc. .. oh and Hearts
I am guessing that they hope all Creditors will agree (and I still think they've got a behind the scenes deal in place with Ticketus) and that HMRC, without the BTC conclusion, will have to go with the CVA outcome.

I think that HMRC may be forced to take legal action and question their CVA entitlement to prevent this getting pushed through, and/or move to have D&P removed from the administartion process. This though could ultimately lead straight to liquidation and then it's a question of whether it's beneficial for the HMRC to risk ending Rangers existence, and future tax income.

Just my uneducated thoughts on the matter .. over to CG and CWG

[johnrebus]

I can't think of Duff & Phelps anymore without thinking of the, 'I can do that', woman from the Katherine Tait show.

They are obviously two guys who were hanging around Ibrox who just offered to help, but don't actually have a scooby.......,


http://www.youtube.com/watch?v=INOL2zVv7mw

[The Green Goblin]

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Have not seen this posted earlier (apologies, if so)

http://www.heraldscotland.com/sport/...n-tax.17704904

Unbelievable stuff!

One of the piss-poorest articles I have ever survived reading. The blast at Yorkston (which takes up the last quarter of the "article) is outrageous and frankly, nothing to do with Dodds, beyond someone having a pop at his beloved huns and him being honour-bound to defend them, as he has been doing on Sportsound for months. You could take every single sentence of that pish and tear it apart several times over, but one that stood out for me was this one:

"I was shocked to hear that 87 players and staff were involved in the EBT scheme at Ibrox – but it should also be remembered that the trusts were not illegal."

Forgive me for asking the obvious fricking question here, but if the trusts were "not illegal", then why was he "shocked"?

I really hope that if the huns get away with this, that the fans in Scotland collectively walk away from the game. I really do. It would be a stain on our national identity and integrity and if that´s how it turns out, I, for one, will walk.

GG

[Suburban Hibby]

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Estimated Outcome Statement


Freehold Property Valuation £ 4,590,214.00

Four and a half million pounds for Ibrox , the car park, Murray Park, you have got to be kidding.

What ever happened to the investigation into Duff and Phelps compromised administration ?

So how does that tie in with the Greene sales document stating property valued at 113 million???

[Brando7]

Says on the rangers website : The overall costs of the administration process will be deducted from the funds available...so it that off £8.5Million? That cost must be in the millions already so that less for the creditors?

[Brando7]

Estimated Funds Available for Unsecured Creditors

CVA £4,967,284
Newco £953,284
Liquidation £0

How they work that out? Freehold Property (murray park n ibrox bound to worth more than £4.5million?

[jgl07]

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Estimated Funds Available for Unsecured Creditors

CVA £4,967,284
Newco £953,284
Liquidation £0

How they work that out? Freehold Property (murray park n ibrox bound to worth more than £4.5million?

And who are the secured creditors then?

[Hibrandenburg]

They're definately at it. A blatant sting if ever there was one. I just can't see what they hope to achieve by this, it's as if they're begging to be liquidated. Where's the hook?

[hibs0666]

If the currants sell £10 million of players in the next two weeks the creditors will get hee haw. On that basis alone I'd tell them to get stuffed.

[StevieC]

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They're definately at it. A blatant sting if ever there was one. I just can't see what they hope to achieve by this, it's as if they're begging to be liquidated. Where's the hook?

I think it's the opposite .. I think they're they're saying "accept this or we'll pull the plug on Rangers and you'll all get nowt".

A clear case of "BLUFF" if ever I saw one.

[Thecat23]

Can't believe we're still chatting about this 3 months after they went into Admin. What other club/league in the world would take this long? NONE!!! Disgusting what is going on. Forget trying to work out figures guys, it matters nothing. They CHEATED, kick them out or break away from the league. Approach the first division and create a bigger league without them. If they get back in I truly am done with this league. SFA= Bottlers.

[pentlando]

Here's a bit that's confusing me slightly. Rangers are currently fighting the SFA ban on transfers for one year, citing the need for the company to trade it's way out of the predicament. In the CVA Proposal it has player transfer fee's listed as assets available to creditors.

As there is no condition I assume that 100% of the fee received by Rangers for any player sales will go to the creditors in the case they agree the CVA. Why are Rangers arguing for the overturn of the ban for trading reasons when they are not going to be able to benefit from sales of the current squad?? Unless they are only looking to reduce the wage budget, but I had assumed transfer fee's would be a large part of Green's bid.

However it's tremendous news that Green's bailout has came in the form of yet another loan, with interest, to be repaid by 2020. Just when they thought they were finished dancing to the Lloyds tune, along comes another loan!

[pentlando]

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If the currants sell £10 million of players in the next two weeks the creditors will get hee haw. On that basis alone I'd tell them to get stuffed.

I may be wrong but I'm sure there was a section counting player sales from 12th May 2012 as being available to creditors.

[Caversham Green]

A few observations on a very quick read through of the proposal:

The consortium's offer is conditional on RFC playing in the SPL.

Amounts available for distribution:- £8.3; Transfer fees already due; anything arising from the Collyer Bristow case.

Amount not available:- ST income; new transfer fees (so the Motherwell scenario I described earlier isn't proposed here which means the consortium will effectively get the players for nothing and be able to sell them on for whatever they can get); SPL money (earned pre or during administration, but not available to the creditors).

Amounts due to:- Ticketus £26.7m (they could probably go after Craigie for any shortfall in the settlement)
HMRC £21.4m plus the BTC
Fitba' creditors £1.1m
Other creditors £5.5m.

Admin fees: £3m plus £500k if CVA accepted/£150k if not
Liquidation costs if CVA not accepted £1m
Legal fees & other costs in either scenario £2m

Expected funds available:- CVA £5m; Newco £1m; Liquidation nil.

The reason that liquidation is nil is because the freehold property is valued at £4.6m (recoverable value as reported in the last audited accounts £112m).

As I say, a very quick summary and I might well have missed some stuff, but that's the gist of what I've picked up.

[Spike Mandela]

If they get away with this then surely this is the blueprint for all clubs to follow. This could be Rangers most successful financial year ever.

[CropleyWasGod]

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Can't believe we're still chatting about this 3 months after they went into Admin. What other club/league in the world would take this long? NONE!!! Disgusting what is going on. Forget trying to work out figures guys, it matters nothing. They CHEATED, kick them out or break away from the league. Approach the first division and create a bigger league without them. If they get back in I truly am done with this league. SFA= Bottlers.

3 months is no time at all for an administration.

[StevieC]

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I may be wrong but I'm sure there was a section counting player sales from 12th May 2012 as being available to creditors.

Money from players previously sold? Jelovic?

[Thecat23]

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3 months is no time at all for an administration.

If this was Hibs or even Hearts that had done all this cheating we would be booted out mate. Whole thing stinks.

[Caversham Green]

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I may be wrong but I'm sure there was a section counting player sales from 12th May 2012 as being available to creditors.

As I read that the transfer fees are what was due before 12 May - paras 5.14 and 5.15. Transfers after that date are specifically excluded.

What's the significance of 12 May?

[ScottB]

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As I read that the transfer fees are what was due before 12 May - paras 5.14 and 5.15. Transfers after that date are specifically excluded.

What's the significance of 12 May?

The last game of their season

[CropleyWasGod]

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And who are the secured creditors then?

CW's holding company has a security, but IMO there is no creditor. The proposal does say that there has been no claim made by them.

Also, Close Leasing has a security. IIRC, that is over the catering equipment.

Edit:- Close Leasing's claim is £1.56m. Also the Sports Council have a secured claim for £505k

[Caversham Green]

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The last game of their season

Ah, that'll be it. Can't see why it's particularly significant for the administration though.

[Spike Mandela]

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3 months is no time at all for an administration.

Am I right in thinking that over these 3 months the administrators have earned more than any of the creditors are likely to get?

[Caversham Green]

I note they haven't included SPL money in the Newco or Liquidation options - does anyone know if the SPL would give them their money even if they were to liquidate?

[dangermouse]

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A few observations on a very quick read through of the proposal:

The consortium's offer is conditional on RFC playing in the SPL.

Amounts available for distribution:- £8.3; Transfer fees already due; anything arising from the Collyer Bristow case.

Amount not available:- ST income; new transfer fees (so the Motherwell scenario I described earlier isn't proposed here which means the consortium will effectively get the players for nothing and be able to sell them on for whatever they can get); SPL money (earned pre or during administration, but not available to the creditors).

Amounts due to:- Ticketus £26.7m (they could probably go after Craigie for any shortfall in the settlement)
HMRC £21.4m plus the BTC
Fitba' creditors £1.1m
Other creditors £5.5m.

Admin fees: £3m plus £500k if CVA accepted/£150k if not
Liquidation costs if CVA not accepted £1m
Legal fees & other costs in either scenario £2m

Expected funds available:- CVA £5m; Newco £1m; Liquidation nil.

The reason that liquidation is nil is because the freehold property is valued at £4.6m (recoverable value as reported in the last audited accounts £112m).

As I say, a very quick summary and I might well have missed some stuff, but that's the gist of what I've picked up.

Does this mean thet HMRC could scupper the CVA all by themselves?

[CropleyWasGod]

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I note they haven't included SPL money in the Newco or Liquidation options - does anyone know if the SPL would give them their money even if they were to liquidate?

Maybe they assume that the SPL would retain anything due to other clubs?

On that point, I notice that they show Football Creditors separately. Other than Anglo-centric normal practice, any idea why that is?

[CropleyWasGod]

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Does this mean thet HMRC could scupper the CVA all by themselves?

Yup, as could Ticketus.