Shift in Rangers administrators’ position on liquidation

[54andcounting 627]

Update and answers "club was made safe" question!

Sunday April 1,2012

By Scottish Express reporter

RANGERS boss Ally McCoist defiantly declared last night that the club will never die, despite being on the brink of liquidation.

It’s understood the three remaining bidders for the Ibrox club – Paul Murray’s Blue Knights group, Chicago-based Club 9 Sports and a consortium from Singapore – all refuse to rule out the demise of the Govan outfit in its current form.

Administrators Duff and Phelps continue to believe a CVA – Company Voluntary Arrangement – could be used, but liquidation is a very real possibility.

But McCoist, who saw his men win 2-1 at Motherwell yesterday, said: “As far as I’m concerned, the club will never die.

“Even if we came back as a newco club, it will never die.

“We’d get a bit of stick and there will be a few arguments.

“I really hope it doesn’t happen but if it does, I wouldn’t see it as anything other than the old club.”

As far as I’m concerned, the club will never die

Ally McCoist

Paul Clark of Duff and Phelps said: “The preferred option remains a CVA. We still think it’s achievable and we’re still recommending that as the preferred course of action to the bidders.

“But we must accept that we have in Rangers a financially stricken institution so all of the options have to remain open.

“I may be that some of the bidders decide that they would rather start afresh.

“We prefer a CVA but it has to be a credible arrangement. It’s a fine balancing act. CVA is our option and it remains an option for all of the bidders.

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“However, we can’t rule out the winning bidder could prefer a different structure that would mean the sale of the business to a new company.

“In that eventuality it is certainly possible that Rangers would be liquidated, but it would only be done so after the football club was made safe.

“You can name-swap so there is no impediment to any newco calling itself Glasgow Rangers. The name can be secured, there’s no issue there.

“Therefore RFC is saved but the shell that it used to operate from – and I understand the history of it – would be the thing that disappears. The club remains but the corporate shell goes.

“I’m not saying that it is the most likely outcome but it probably needs to be put out there.”

The administrators have a preferred bidder who could be named at the end of the week, and who would then get a couple of weeks to confirm their intentions.

As for now, though, business continues as normally as possible with Rangers having received bids for players.

A £2million offer for Steven Naismith was denied by manager McCoist yesterday, but Clark said: “We’ve had approaches from more than one club for more than one player.

“But I should say that it was only a few weeks that the players made tremendous sacrifices in accepting huge salary cuts and had they not accepted them then the issue of bids for players wouldn’t have existed, because we would have had to have let them go.

“There wouldn’t have been any decisions to make. They’d have been gone.

[MasterD 7,447]

Interesting that they have been approached about some players.

I think no matter who takes over our top 4 or 5 players will be gone in the summer.

[OlegKuznetsov 10,816]

Shift in position, is a bit more dramatic than the story merits.

Indeed, the story mentions that all three main bidders intend to go the CVA route, despite lies to the contrary that at least one bid depended on liquidation or that TBK were the only non-liquidation route.

The actual article is notably more positive than the vaguely ominous headline.

Notice how the press spin facts which are not unambiguously negative.

[Craigie79 67]

Interesting that they have been approached about some players.

I think no matter who takes over our top 4 or 5 players will be gone in the summer.

Doubt we will be in a position to put there wages back up to where they were.

[Sobatai 70]

What do you think of the point re creditors (some of whom will be Rangers men) appointing one of the big solicitors to act on their behalf to ensure the administrators are acting properly.

We do not know the legals ins and outs but this would be positive action to bring everything out into the open.

I'm no expert, but I understand that the creditors are provided with ample opportunity to assess the process of administration. I believe the creditors have the right to form a committee:

The creditors have the right to appoint a committee with a minimum of 3 and a maximum of 5 members. One of the functions of the committee is to determine the basis of the administrator’s remuneration. The committee is normally established at the meeting of creditors which the administrator is required to hold within a maximum of 10 weeks from the beginning of the administration to consider his proposals. The administrator must call the first meeting of the committee within 6 weeks of its establishment, and subsequent meetings must be held either at specified dates agreed by the committee, or when a member of the committee asks for one, or when the administrator decides he needs to hold one. The committee has power to summon the administrator to attend before it and provide information about the exercise of his functions.

[The Only Way is Up 27]

Think about the timing of the administrators statement re possible liquidation.

The final bids must be in by Wednesday.

This is similar to the time they issued deadlines to the players.

This looks like a negotiating tactic to me.

[The Only Way is Up 27]

I'm no expert, but I understand that the creditors are provided with ample opportunity to assess the process of administration. I believe the creditors have the right to form a committee:

The creditors have the right to appoint a committee with a minimum of 3 and a maximum of 5 members. One of the functions of the committee is to determine the basis of the administrator’s remuneration. The committee is normally established at the meeting of creditors which the administrator is required to hold within a maximum of 10 weeks from the beginning of the administration to consider his proposals. The administrator must call the first meeting of the committee within 6 weeks of its establishment, and subsequent meetings must be held either at specified dates agreed by the committee, or when a member of the committee asks for one, or when the administrator decides he needs to hold one. The committee has power to summon the administrator to attend before it and provide information about the exercise of his functions.

Cheers. Do you know if they have and if they are receiving proper legal advice. If the fans contacted the correct number of creditors, get them mobilised properly, we could then find out what the administrators are up to.

Worth progressing?

[Sobatai 70]

Cheers. Do you know if they have and if they are receiving proper legal advice. If the fans contacted the correct number of creditors, get them mobilised properly, we could then find out what the administrators are up to.

Worth progressing?

As I said, I'm not an expert and I fear that I must bow out at this stage. But perhaps others will be able to give you a better idea. Would being a season ticket holder qualify as a creditor? If yes, then collectively that would be a major creditor, so perhaps some form of season ticket holders' organisation could gain leverage? But it all takes time to organise.

[The Only Way is Up 27]

Good point - I'm a season ticket holder and received the letter from D&P.

I have contacts at a leading solicitors who can advise what could be done.

Does anyone know if something like this is in progress. If so, can you point me in the correct direction.

Seems like a good way to get some answers and do something other than stand by helpless and worry about things.

[GIJoe 98]

It does seem to have taken longer than expected to get a resolution but let's face it this is no ordinary case. We're approaching the end game now and there's going to be all sorts of bluffing, scare tactics and sabre rattling going on in an effort to force the participants' hands.

I'll wait and see what actually happens before getting too paranoid.

[Calgacus 88]

As someone mentioned the Limited Company is only the vehicle that is used to carry the club. The new company will buy the business from the current limited company and the business will continue as before, only using a new vehicle, everything that makes Rangers, Rangers will transfer to the new company, just the same as everything that belonged to the club became the limited company's when it was started. The Limited Company is not Rangers, it's just the vehicle that Rangers uses to operate in, no body goes to watch a Limited Company, they go to watch the Club.

[ricksen_da_best 2,034]

I feel sick at the thought, really sick.

[delamonty 992]

It is time for the Admins to have complete 'clarity' in terms we all understand. Not for this Forum -- or others -- to continually interpret what is going on.

Only D&F know the whole story.

Admin need to come clean this week. If no CVA can be reached, then ... no one gets a penny and we liquidate. Bottom line imho. Surely ANY creditor would take 10p instead of 0 ?

[Craigie79 67]

Cheers. Do you know if they have and if they are receiving proper legal advice. If the fans contacted the correct number of creditors, get them mobilised properly, we could then find out what the administrators are up to.

Worth progressing?

From what ive heard is that the admin are required to release to the public the info of who our creditors are and how much they are owed soon. With the amount the RFFF has raised that could clear out a good 90% of the creditors at full value before a CVA(thats 90% of companies owed not total amount) which would just leave HMRC and ticketus as big creditors along with the money Hearts and Rapid are due a large amount.

To me the big tax bill verdict is still the main problem here, even going forward with the ticketus deal that is in place could mean that as long as we the fans stay loyal with the low wage bill to cover they payments, that come the day of the last payment we are instantly 5-10 million better and running at a low wage to kickstart the club.

Which in my opinion would be the right time to turn to fan ownership instead of now when our club is on its knees with funds low and debts high. by the end of this ticketus deal the jjb deal will also be over which in theory could give the fan groups 3/4 year to get funds to buy the club and sort out the best way to take our club and merchandise forward.

[delamonty 992]

From what ive heard is that the admin are required to release to the public the info of who our creditors are and how much they are owed soon. With the amount the RFFF has raised that could clear out a good 90% of the creditors at full value before a CVA(thats 90% of companies owed not total amount) which would just leave HMRC and ticketus as big creditors along with the money Hearts and Rapid are due a large amount.

To me the big tax bill verdict is still the main problem here, even going forward with the ticketus deal that is in place could mean that as long as we the fans stay loyal with the low wage bill to cover they payments, that come the day of the last payment we are instantly 5-10 million better and running at a low wage to kickstart the club.

Which in my opinion would be the right time to turn to fan ownership instead of now when our club is on its knees with funds low and debts high. by the end of this ticketus deal the jjb deal will also be over which in theory could give the fan groups 3/4 year to get funds to buy the club and sort out the best way to take our club and merchandise forward.

Cheers mate. Fan ownership -- while unlikely imho -- would at least never see our Club in this state.

That aside. D&F are also under time constraints. Are they not? Do you know what they are?

[Craigie79 67]

I think the admin have 8 weeks to agree a way in which the debts should be paid whether that is a lumps sum or staggered payments.

[gersandy 594]

If liquidation is a possability, id like more info on what it means for us.

In what league would we play? (probably the spl as we mean too much for the scottish ecomomy).

Would the players be made free agents? Therefor making them available to the new club.

Would honours be transfered? Id say yes, as someone made a good point yesterday that, even though cwc and european cup are extinct, teams are still awarded with these cups. And looking at fiorentinas case.

Lastly, any new club would HAVE to be owned by fans. We have to go down the stirling albion route. Where fans make every decision. The last few weeks have proved our biggest asset is the fans. And theres no businessman willing/able to give us what we need as an owner.

[hemdale1873 167]

I think Ally and the admin people know what they are doing here by talking up liquidation, it's a warning to hmrc to either take a cva or get nothing. Got a feeling the tax case result will come out in the next week or so.

Would be silly to talk things up right now and have hmrc come after us all guns blazing, better to appear weak and unable to pay any fine they hit us with, which would leave them with only two options get nothing or take a smaller amount.

The only way we will go into liquidation in the short term is if hmrc issue a winding up order right after the case is over, Its a game of poker now.

[derek1872 548]

Quote from Ally McCoist in Scotsman:

“As far as I’m concerned, the club will never die,” he said. “Even if we came back as a newco club, it will never die. We’d get a bit of stick and there would be a few arguments. I hope it doesn’t happen but, if it does, I wouldn’t see it as anything other than the old club. I don’t go along with the idea that 140 years of history would be wiped out"

Are we being softened up? I very much hope not, but why all this now?

Ally saying this is a real concern.

[derek1872 548]

Super Ally

Agreed. Which makes it all the more worrying when he is talking about liquidation.

[Alnic3856 358]

The "Club" Existed for 27 years before the "Company" was formed Rangers FC Group Limited is NOT the institution founded on Fleshers Haugh all those years ago. If the "Club" is transferred to a new company before the old company is Liquidated then in my eyes we lose nothing.

I'm sure others have different opinions though but thats mine.

[blueben_d 40]

Liquidation is not in the interests of the creditors as they'd get nothing. Therefore the administrators have to look at every other option first.

[jimmyblue75 20]

This is a very interesting comment I think, especially the end bit.

Anyone care to hazard a guess at what it means?

I'm thinking once we are certain we will still be granted a place in the spl after liquidation???

comments??

[gersandy 594]

I'm thinking once we are certain we will still be granted a place in the spl after liquidation???

comments??

Offered a place? We'd be begged to come in. 50000 fans turning up every week, generating millions for the scottish game.

Its a no brainer.

[OneDavidCooper 2,505]

Ally saying this is a real concern.

Agreed.

All of this makes terrifying reading.

I'm assuming liquidations means:-

* immediate expulsion from the Scottish leagues;

*having to apply for a place in division 3.

But what about the ground? Would we still own it?