Generic Sevco / Rangers meltdown thread

[MSK]

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ADMINS! (no not D&P ) the competent ones...

Can we get title updated to reflect latest glorious news

Once its officially official ...or written in blue blood ..

[EdinMike]

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This is very much brass ring time then, will they have to start in the 3rd Division, or will they weasel their way back into the SPL and kill it dead.

Well this is it.

This is the decision I and I'm sure a lot of honest, hard working, law abiding (Well hmm some of yae's..) people are waiting on ! If they are accepted back then I won't be !

Can we put the final nail in this coffin !?

[Seveno]

DUFF and Phelps, administrators of Rangers issued the following statement today following the news that HMRC would reject the CVA proposal.

Paul Clark, joint administrator, said today: “We have been informed by HMRC they will not support the proposal for a Company Voluntary Arrangement at the meeting of creditors on Thursday, June 14.

“As a result of this decision, the Sale and Purchase Agreement in place with the consortium led by Charles Green will take effect and Rangers Football Club will continue within a new company structure.

“The reasons HMRC have given to us for their decision to vote against the proposal are as follows. HMRC has cited its general policy of not agreeing to a CVA where there is strong evidence of non-compliance by a company with its tax liabilities.

“HMRC had agreed to consider a CVA proposal along with all other options in the case of Rangers but having taken into consideration the extent of funds which will be made available to creditors through the CVA option, they have decided that it is not acceptable given The Rangers plc’s level of indebtedness to HMRC.

“It has also been made clear to us that other offers tendered for the Club, which took the form of a CVA, would have been treated in the same way and that the rejection is not a reflection of the Green consortium bid.

“HMRC has taken the view that the public interest will be better served with the liquidation of The Rangers Football Club plc as a corporate entity. The Club will continue to operate as it has always done but within a new company structure.

“HMRC consider that the decision will enable a liquidator to instigate a wider investigation into all of the financial affairs and management of the Club in recent years and to bring to task those they believe are responsible for its collapse.

“Furthermore, HMRC believes there will be an enhanced recovery of funds for creditors by pursuing those who they believe are responsible.

“The consequence of the rejection of a CVA outcome is that sanctions will be applied to the Club by UEFA and that the Club will not be able to participate in Europe for three years and the new company will need the consent of the other SPL clubs to the transfer of the share in the SPL, in order for Rangers to continue playing in the SPL.

“As we have always stated, administrators have a primary objective to ensure the survival of the company and in this case, this would have been achieved through a CVA. It was with HMRC’s approval, that a proposal was placed before creditors for consideration.

“However, it is the commercial view that the level offered within the CVA was not enough to merit departure from their normal policy of seeking a detailed investigation via a liquidator.

“However, we have been left in no doubt by HMRC the fundamental reason for the rejection of the CVA proposal is the historical non-compliance with tax liabilities by the former owners and directors of the Club.

“As we have stated previously, there is a binding contract between ourselves as administrators and Charles Green, who is leading a consortium to acquire the Club.

“The creditors’ and shareholders’ meetings will take place at Ibrox on Thursday but the results of those meetings will now be entirely academic given HMRC’s decision.

“As soon as the CVA proposal is formally rejected, Mr Green’s consortium will move towards completion of an acquisition of the business and assets of The Rangers Football Club plc. That transaction will be completed within a few days.

“The sum payable to creditors will be £5.5 million, most of which has already been paid over to us by the Green consortium.

“Over the coming months, we as administrators will continue to finalise the administration of the Club and we will work in conjunction with BDO who will undertake the liquidation process.

“We would like to thank the staff and supporters at Rangers for their great determination and professionalism during a very difficult period for the Club. While the Club will continue to face difficulties in the short term, it will survive and continue to play at Ibrox.”


Note the bit that I have put in bold. SDM last seen running for the hills.

[Paisley Hibby]

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I don't think a newco is certain at all. The liquidators have a duty to obtain the best possible price for the assets - D&P claimed that the £5.5m offer from Green was the best they could achieve but BDO might have a different view. Liquidators are appointed by the company, but HMRC have nominated BDO and D&P haven't disputed that so it is likely to be BDO.

I made an interesting point (well I thought it was interesting) about that £5.5m purchase. If anyone has a copy of the CVA proposal, look at the 'Estimated outcome statement'. The £5.3m balance is clearly shown to be for Intellectual property rights/goodwill, Player contracts and Stock only. Freehold property has N/A (not applicable) against it. I think it must just be badly drafted but it's quite a major blunder IMO andI'm surprised none of the various bloggers noticed it.

The players contracts can be passed on to the newco under TUPE rules, but it's at the players' discretion - they can walk away if they get a better offer.

While I've always hoped you ARE on to something with that, I still believe the freehold property thing is too fundamental to have been a mistake/oversight. The fact that Green is now giving a 'solemn promise' his Newco Rangers will play at Ibrox suggest that he has this base covered somehow OR Green and D&P don't realise that this mistake has been made. I don't think BDO will miss it though! FWIW I think a price of £5.5m for JUST the football club probably makes sense. The property could then be sold separately as part of liquidation to help pay back creditors.

[down-the-slope]

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Matt Slater ‏@mattslaterbbc

D&P also says HMRC wants to liquidate RFC plc to enable full investigation of last decade, & to pursue wrong-doers for lost tax...

Anyone hear the sound of David Murray filling his breeks at that statement......Another Knight Hood to be returned after it all shakes out.....

[down-the-slope]

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Once its officially official ...or written in blue blood ..

Its on the main BBC 1pm news in a minute.....thats good enough for me...and D&P have made statement confirming.....M'laud

[jgl07]

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Funny, 'cos I was feeling all Churchillian.

Certain as I was that rfc 1872 were doomed some time ago

I thought it was Rangers FC 1690?

[hibs4life]

http://m.bbc.co.uk/news/uk-scotland-...-west-18409172

This states a liquidator will be appointed by HMRC i.e. not Duff & Phelps and that they can investigate ex directors and dealings. I'm not sure but I think they will have a big influence on what gets sold and at what price, so Mr Green may not be getting them for just 5.5m as he hopes....

[EdinMike]

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Anyone hear the sound of David Murray filling his breeks at that statement......Another Knight Hood to be returned after it all shakes out.....

Yup !

http://www.bbc.co.uk/news/uk-scotlan...ign=sportsound

[ballengeich]

So far so good. However, they will re-emerge in some form, possibly even more bitter and vile. The SPL and SFA must ensure that the Newco is not used as an excuse to avoid football punishment for the sins of Rangers 1872. The Newco must suffer whatever sanctions the existing business would have received. They shouldn't be allowed into the SFA unless they agree to that. A year's suspension from the Tribunal when it reconvenes would be a start.

[down-the-slope]

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While I've always hoped you ARE on to something with that, I still believe the freehold property thing is too fundamental to have been a mistake/oversight. The fact that Green is now giving a 'solemn promise' his Newco Rangers will play at Ibrox suggest that he has this base covered somehow OR Green and D&P don't realise that this mistake has been made. I don't think BDO will miss it though! FWIW I think a price of £5.5m for JUST the football club probably makes sense. The property could then be sold separately as part of liquidation to help pay back creditors.

......like 'rangers will never again be in debt' (well other than the money they owe me)...'CVA is a certainty we have spoken to them and they were positive'...whooops....'We have shed loads of multi milionaire investors'..(cue sound of loose change being looked for down back of the sofa)....

I think a team will be at Ibrox next year...but not with Green at helm...and maybe not even in SPL...assuming they have a licence at all that is....

[CropleyWasGod]

Okay, after a wee walk at lunchtime, this is the way I now see things happening.

Cav, you are right about the properties not being sold to NewCo. Green has the club, its soul if you like, for £5.5m. That's not a bad price, no matter what league they are in next season. In the SPL, it's a steal, in the SFL it's more of a medium-term payback.

The properties stay in OldCo. Their proceeds, plus the £5.5m, will be used to pay creditors. They will probably get more than they would have under the CVA, so they're better off.

Green knows that there is a limited market for Ibrox, given the listed status of the frontage. He, through another company, (or perhaps someone else that he has already lined up) will buy Ibrox and rent it to NewCo.... hence his "solemn promise" today.

Have I missed anything?

[down-the-slope]

So 3 years whatever else happens when another team will get a shot at Europe....we really need to get a team on the park this year to take advantage...come on Pat and the board...its now or never...

[down-the-slope]

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Okay, after a wee walk at lunchtime, this is the way I now see things happening.

Cav, you are right about the properties not being sold to NewCo. Green has the club, its soul if you like, for £5.5m. That's not a bad price, no matter what league they are in next season. In the SPL, it's a steal, in the SFL it's more of a medium-term payback.

The properties stay in OldCo. Their proceeds, plus the £5.5m, will be used to pay creditors. They will probably get more than they would have under the CVA, so they're better off.

Green knows that there is a limited market for Ibrox, given the listed status of the frontage. He, through another company, (or perhaps someone else that he has already lined up) will buy Ibrox and rent it to NewCo.... hence his "solemn promise" today.

Have I missed anything?

Aye Aye..you went out for a wee celebration 'juice'

[Thecat23]

RANGERS.. YOU HAVE BEEN EVICTED, PLEASE LEAVE THE BIG SPL HOUSE.

RANGERS.. YOU HAVE BEEN EVICTED, PLEASE LEAVE THE BIG SPL HOUSE.

[jgl07]

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It is inconceivable as buying a football club and changing their name in that manner isn't allowed - that loophole was closed after Airdrie United did it to Clydebank

That was nearly 40 years after Clydebank tried to do exactly the same to East Stirlingshire.

The SFL permitted franchising when they allowed Meadowbank Thistle to move grounds and change name to Livingstone.

Down south the Football League did the same when Wimbledon became Milton Keynes Dons.

Clubs have been allowed to change names and to move grounds, sometimes at the same time long before Airdrie United.

East Stirlingshire do not have a ground. Let us assume that a new ground was made available somewhere in West Lothian. Then if Hearts went bust the name of the East Stirlingshire was changed to Rim of Midlothian and their kit was altered to maroon.

What would anyone be able to do about it?

[calmac12000]

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Well this is it.

This is the decision I and I'm sure a lot of honest, hard working, law abiding (Well hmm some of yae's..) people are waiting on ! If they are accepted back then I won't be !

Can we put the final nail in this coffin !?

As I and many others, have said on this forum liquidation was all but inevitable from the moment the Hun's went into administration. Particularly, when one factors in Rangers' liabilities to HMRC, who were never, despite the laptop loyals musings, ever going to accept anything less than at least a substantial payment of tax avoided.
As you so presciently say now is the point when the coup de grace can be applied. When Scottish football must stake its claim to sporting integrity and tell the entire hand shaking crowd where to go.

[down-the-slope]

I await any more statements from FIFA now......

[Moulin Yarns]

What the ell's going on?? I've just had to skip 6 pages from today to keep up!!!!

can someone confirm

No CVA - tick
BDO appointed - ?
No sale to Greene for £5.5million - ?
BDO put assets up for sale to get best price - ?
Players all leave - ?
No European football for 3 years - tick

[Mon Dieu4]

So what's the score now, they set up a newco try and get an SFA license and admitted to the SPL?

[CropleyWasGod]

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What the ell's going on?? I've just had to skip 6 pages from today to keep up!!!!

can someone confirm

No CVA - tick
BDO appointed - no
No sale to Greene for £5.5million - probably will happen
BDO put assets up for sale to get best price - no
Players all leave - possibly
No European football for 3 years - probably

[MB62]

[QUOTE=CropleyWasGod;3260437]Okay, after a wee walk at lunchtime, this is the way I now see things happening.

Cav, you are right about the properties not being sold to NewCo. Green has the club, its soul if you like, for £5.5m. That's not a bad price, no matter what league they are in next season. In the SPL, it's a steal, in the SFL it's more of a medium-term payback.

The properties stay in OldCo. Their proceeds, plus the £5.5m, will be used to pay creditors. They will probably get more than they would have under the CVA, so they're better off.

Green knows that there is a limited market for Ibrox, given the listed status of the frontage. He, through another company, (or perhaps someone else that he has already lined up) will buy Ibrox and rent it to NewCo.... hence his "solemn promise" today.

Have I missed anything?[/QUOTE]

Aye, this bit

'As we have always stated, administrators have a primary objective to ensure the survival of the company
I thought their primary objective was to look after the best interest of the creditors

[BarneyK]

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What the ell's going on?? I've just had to skip 6 pages from today to keep up!!!!

can someone confirm

No CVA - tick
BDO appointed - ?
No sale to Greene for £5.5million - ?
BDO put assets up for sale to get best price - ?
Players all leave - ?
No European football for 3 years - tick

No CVA, check. BDO appointed, not yet. No sale to Green, maybe. Assets for sale, maybe. Players all leave, they can, not necessarily will. No Europe for 3 years, absofrigginlutely

[Part/Time Supporter]

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Okay, after a wee walk at lunchtime, this is the way I now see things happening.

Cav, you are right about the properties not being sold to NewCo. Green has the club, its soul if you like, for £5.5m. That's not a bad price, no matter what league they are in next season. In the SPL, it's a steal, in the SFL it's more of a medium-term payback.

The properties stay in OldCo. Their proceeds, plus the £5.5m, will be used to pay creditors. They will probably get more than they would have under the CVA, so they're better off.

Green knows that there is a limited market for Ibrox, given the listed status of the frontage. He, through another company, (or perhaps someone else that he has already lined up) will buy Ibrox and rent it to NewCo.... hence his "solemn promise" today.

Have I missed anything?

Are you sure?

CVA agreement says that Green will purchase the "business and assets" of RFC by 30 July - point 4.23 of the link below. Surely that would include Ibrox, Murray Park, etc? I think HMRC will challenge that.

http://www.rangers.co.uk/staticFiles/c9/b3/0,,5~177097,00.pdf

[CropleyWasGod]

[QUOTE=MB62;3260448]

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Okay, after a wee walk at lunchtime, this is the way I now see things happening.

Cav, you are right about the properties not being sold to NewCo. Green has the club, its soul if you like, for £5.5m. That's not a bad price, no matter what league they are in next season. In the SPL, it's a steal, in the SFL it's more of a medium-term payback.

The properties stay in OldCo. Their proceeds, plus the £5.5m, will be used to pay creditors. They will probably get more than they would have under the CVA, so they're better off.

Green knows that there is a limited market for Ibrox, given the listed status of the frontage. He, through another company, (or perhaps someone else that he has already lined up) will buy Ibrox and rent it to NewCo.... hence his "solemn promise" today.

Have I missed anything?[/QUOTE]

Aye, this bit

'As we have always stated, administrators have a primary objective to ensure the survival of the company
I thought their primary objective was to look after the best interest of the creditors

As i see it, they have succeeded in that primary objective... I always did have faith in them

[CropleyWasGod]

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Are you sure?

CVA agreement says that Green will purchase the "business and assets" of RFC by 30 July - point 4.23 of the link below. Surely that would include Ibrox, Murray Park, etc? I think HMRC will challenge that.

http://www.rangers.co.uk/staticFiles...~177097,00.pdf

Been over it a few times, and Cav has more than a few. It doesn't mention the properties.

[Andy74]

If Rangers want back in to the SPL they pretty much have to agree to anything don't they?

Now's the time to get a bigger share of cash and change the voting structure. At the very least.

[cabbageandribs1875]

we're havin a party, when rangers die

we're doing the conga, when rangers die

[Part/Time Supporter]

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Been over it a few times, and Cav has more than a few. It doesn't mention the properties.

It doesn't exclude them either. I think the difference in price was purely due to the facts that newco will be excluded from Europe for three years and possibly kicked out of the SPL.

[BarneyK]

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If Rangers want back in to the SPL they pretty much have to agree to anything don't they?

Now's the time to get a bigger share of cash and change the voting structure. At the very least.

Nah, bump them down to division 3.