Why did Whyte not Pre-Pack us?

[mitre_mouldmaster 21,509]

One question I just cant get my head around is 'Why did Craig Whyte not pre-pack us, like what happened with Leeds United?'.

I am not sticking up for him, I am only wondering why he has not done the move that would see him get the biggest return.

Leaving the history debate to the side, a pre-pack would have allowed the emergance of a debt free Rangers which requires no permission from the creditors, so in turn no hastle of arranging a CVA.

We would have no doubt been deducted points and let straight back into the SPL, and most probably banned from Europe for 3 years.

However, Whyte would then own a company with a much larger financial value than the current company. This would have been easy to sell, realising easy profit.

Does he really have £30m of personnal security on us somewhere? Does he need us to survive?

[DarcheVinny 1,003]

In the world of Whyte, a huge part of this £30million, comes from his alleged personal liability to Ticketus.

Ticketus, were clearly duped by Whyte. They know that if they go looking for their coin from him, they won't get a penny. So they come to us. Either through TBK (I don't think D&P will choose TBK as preferred bidders, due to Ticketus involvement, which concerns me), or by joining the creditors queue. A secured creditor? I'm not sure.

The interesting part of that surprisingly helpful read from the usually poor Wilson, is the suggestion that bidders can 'bid' once a preferred bidder has been selected, to save the day if a CVA is rejected.

Cometh the hour, cometh Brian Kennedy.

[ScottBF2 3,540]

The answers lie with Ticketus.

[Polo 1,435]

If he pre-packed us the new company would need to have had paid a fair price for the business and assets (i.e. 'Rangers').

No chance he'd have been able to do that

[The Godfather 72,672]

In the world of Whyte, a huge part of this £30million, comes from his alleged personal liability to Ticketus.

Ticketus, were clearly duped by Whyte. They know that if they go looking for their coin from him, they won't get a penny. So they come to us. Either through TBK (I don't think D&P will choose TBK as preferred bidders, due to Ticketus involvement, which concerns me), or by joining the creditors queue. A secured creditor? I'm not sure.The interesting part of that surprisingly helpful read from the usually poor Wilson, is the suggestion that bidders can 'bid' once a preferred bidder has been selected, to save the day if a CVA is rejected.

Cometh the hour, cometh Brian Kennedy.

When this went to court did D&P not say they were seen as a regular creditor (not secured)?

I can't really recall but it does ring a bell.

[dan_ger 1,454]

Also there was a CVA on the table for Leeds Utd to come out of administration, or at least I am led to believe. It was HMRC who challenged the CVA and this forced Bates down the Newco route.

[Bluepeter9 5,167]

Pre-pack is a bit of a misnomer - you have to pay the value (or a fair value) for the assets - sort of easy with smaller companies with little or no assets BUT harder for companies with real assets and open to challenge if fair value is not obtained and process has to be done by an administrator.

[Ricky_ 893]

Would Whytes demands for money for the club not be similar to:

say i took a £100k loan from the bank buying a house with it, then when i cant afford the repayments, and the bank swoop in and take it of me, that i demand profit from the whole scenario, even though ive not used a penny of my own cash?

[Eastcoast Al 1]

The administration was forced by HMRC after Whyte's announcement that it may happen within 10 days. He had to rush it or risk not having Duff and Phelps in charge (HMRC had DeLoittes Lined up for the administrators role).

It might be that he had planned to do so but never had the opportunity.

Alternatively it could be it has been his plan for liquidation all along so why waste the time and effort, bit like paying all other bills/taxes of his 9month in charge.

Who can second guess this mad man.

[gunslinger 270]

he is.

[iconicman 8]

Would Whytes demands for money for the club not be similar to:

say i took a £100k loan from the bank buying a house with it, then when i cant afford the repayments, and the bank swoop in and take it of me, that i demand profit from the whole scenario, even though ive not used a penny of my own cash?

Not really, the issue is far more complex than that. He repaid the debt to Lloyds, so Rangers owe him now instead of Lloyds, therefore he has floating charge over the assets of the club. There is a potential ability to force him to waive the loan if he did not honour aspects of the purchase agreement, that would require a court ruling to enforce though.

He used Ticketus money to repay Lloyds, which of course comes from the club's season tickets, but Ticketus demanded guarantees from him should Rangers not honour the deal (i.e. admin/liquidation).

So ultimately, if Rangers fold, Ticketus come after Craig Whyte for the money.

The man is an unscrupulous barsteward, but he is still in effect on the line for the Ticketus money. He certainly has tied up the club in all sorts of loops and wrangles, we can only hope the Administrators can work through it and Craig Whyte/ Ticketus will not stand in the way of the deal.

(Caveat: Based on everything that has so far been reported and released)