Big Rangers Administration/Liquidation Thread - All chat here!

[chrismcarab]

Absolutely no chance of survival. Liquidation a cert. There are so many things in that document its actually impossible to offer up a concise version of things to be aware of before voting but mainly:

• There is just under £5m in the pot as it stands
• There are multiple unknowns in terms of creditors and potential top ups to the CVA fund - could be more, could be less
• The offer is 'conditional' based on an 8 year loan from Green
• Conditions include allowing Rangers to compete in the the league and competitions they are currently involved in (SPL?)

I simply can't see the point in even drafting this at all other than to fulfil an obligation to creditors of actually proposing a CVA. Other than that, its a lot of pages of nothing at a cost of £1100 an hour for H&D. Nice work if you can get it.....

[Magnethead]

There's no way those CVA proposals will be accepted, that's just way beyond ridiculous. Nearly as bad as Charles Greens "conditional" offer to buy the club.

Oh dear, if that's the best they can come up with it's adios Rangers

[ayrmad]

So that Chas Green can have it away on his toes with the assets, "paid for" using money he has borrowed from Rangers (in the future).

Utter utter utter bollix. HMRC must be having a bloody fit.

300/400 building plots in Milngavie for £4m, not bad.

Wish I was in on it.

[MarreZ]

Estimated funds available for creditors £4,967,284 of which it seems to me, 3m CVA costs will come out, leaving just under 2m, but is this including or excluding the administrators 3m fees?

[Bobby_F]

Fair point, in that case they have 34,078 players over the age of 18.

That's nearly 200% more than Green first thought. He'll be delighted.

[SEETHING]

re Chas' money being a loan, that was always going to be the case. In practice, I doubt that it'd make any difference - loans can always be written off, after all.

Btw, what happens once this CVA is punted? Liquidation? Please let it be liquidation.

[Homer Thompson]

5.12 The SPL season has finished and as a result, the Company's trading revenue has dropped sharply. The Company must still continue to trade, and in particular it must continue to pay its players, to remain as a going concern. As such, the Company will incur the CVA Trading Costs. It is unclear at the date of this Proposal the period over which the CVA Trading Costs will be incurred and therefore a definitive figure cannot be provided at present. It is estimated that, if the loan is drawn down on or around mid July 2012,

The CVA Trading Costs may be in the region of £3,000,000 ministration fees are on top of the 3m CVA trading costs out the pot, so even by a low 2.7 figure administrators costs, thats 5.7m out of the 8.5m, at the low end, and 6.5m at the high end. The current pot of creditors is 56m near enough going by the statement, which would be just under 5% at the low end as a best case scenario. (not including any potential court cases in and out).

Did I read this correctly?

I think you did - totally missed this bit!! Not only that, but any SPL prize money or TV money isnt going into the pot either. AND, season ticket sales and players sold in June will be counted as Excluded Assets (ie not in the CVA pot) unless there isnt enough money to keep the club going, which there wont be!

[Gaspode]

Estimated funds available for creditors £4,967,284 of which it seems to me, 3m CVA costs will come out, leaving just under 2m, but is this including or excluding the administrators 3m fees?

I think the admins fees have already been deducted by that stage Marrez - but it all depends on the secured or preferred creditors making a claim against the funds - I think there are 4 including Whyte, Close, Sport Scotland and someone else. No monies left as far as I can see, either way.

[No8.]

Give it 5 pages, and No.8 will be back to the "Rangers not being allowed to sign players over 18 is ageist and discriminatory!"

Despite it having now been made clear that employing players over 18 is fine, but playing them in matches is not.

Restricting teams to only playing 3 'foreigners' was found to be discriminatory even though you could employ as many foreigners as you wanted...Berlusconi had some of the best players sitting in the stand every week as they were not allowed to play more than 3 in any 1 game. That ruled was changed PDQ..

[monrovianmonk]

Can someone explain, how can they sell assets valued at £111,000,000 for £5,500,000 without offering them for sale on the open market?

[KeeperDee]

Case closed, Rangers WILL be liquidated and "cast unto the fire".

[Homer Thompson]

re Chas' money being a loan, that was always going to be the case. In practice, I doubt that it'd make any difference - loans can always be written off, after all.

Btw, what happens once this CVA is punted? Liquidation? Please let it be liquidation.

No. The assets are sold to Green for £5.5m and transferred to a newco. The newco then has to apply to the SFA and SPL to transfer over membership.

The only plus of a newco is that, if the memberships are transferred, then so too are the sanctions. It should also mean that any dual contract investigation can still impose sanctions on the newco

[ayrmad]

Can someone explain, how can they sell assets valued at £111,000,000 for £5,500,000 without offering them for sale on the open market?

Because they're pulling a fast one?

[Claymores]

re Chas' money being a loan, that was always going to be the case. In practice, I doubt that it'd make any difference - loans can always be written off, after all.

Btw, what happens once this CVA is punted? Liquidation? Please let it be liquidation.

Nope - H&D seem to have entered a binding agreement to see all the assets to Green for £5.5m - (a pre-pack newco)

INCREDIBLE!

[Florentine_Pogen]

Can someone explain, how can they sell assets valued at £111,000,000 for £5,500,000 without offering them for sale on the open market?

Aye, the January 2012 Management Accounts apparently valued property freeholds at £109,000,000.

The asset stripping has begun ?

[SEETHING]

No. The assets are sold to Green for £5.5m and transferred to a newco. The newco then has to apply to the SFA and SPL to transfer over membership.

The only plus of a newco is that, if the memberships are transferred, then so too are the sanctions. It should also mean that any dual contract investigation can still impose sanctions on the newco

Thanks. Would still be quite a pleasing outcome, I suppose.

Would it affect the ability of this newco to borrow in the future? Sort of like Greece's credit rating being fucked?

[monrovianmonk]

Because they're pulling a fast one?

Ok, but how can they get away with it?

[forkboy]

Restricting teams to only playing 3 'foreigners' was found to be discriminatory even though you could employ as many foreigners as you wanted...Berlusconi had some of the best players sitting in the stand every week as they were not allowed to play more than 3 in any 1 game. That ruled was changed PDQ..

Not the same thing. Your example was a permanent rule. This is a punishment. which would last 1 year & then go back to normal.

[TheTaxMan]

Looks like Haudit & Daudit have committed to sell the Green brigade Ibrokes, Minty Moonbeams Park, Albion carpark and the players for just over £5 million in the event of a CVA being rejected and the club being liquidated. Surely to christ that can't be in the best interests of the creditors - if the beast is liquidated a fire sale of assets would raise more than that.

[Captain_Sensible]

Why are the assets valued at under £5M in liquidation?

Shells and pea spring to mind.

300/400 building plots in Milngavie for £4m, not bad.

Wish I was in on it.

Building plots for what?

You would need planning permission first of all surely?

The land at Ibrox is probably less than worthless after you take demolition costs into account. The land at Murray Park is worthless without planning permission.

The valuation in that document appears to be wildly optimistic!