Martin Bain, His lawyers, Rangers & Insolvency
10/09/2011 812 Comments
I was contacted this week by a source who has uploaded a rather remarkable document to a file-sharing service. He forwarded a link to me and even I was astounded to find that Mr. Bain has become an advocate for truth and transparency. The document in the link below confirms for even the most sceptical or blinkered, the truth that this blog has been bringing to you.
The document appears to be a court filing from Bain’s lawyers laying out their case for an arrestment of cash from Rangers on the grounds that the club is at risk of insolvency before the Bain dismissal case will be heard.
Coming a day after Rangers FC issued a press release declaring: “The remarks in the Court of Session today made by Levy & McRae with regard to their concerns about the club’s solvency are unfounded and unwarranted” I found it interesting to read that one of of Scotland’s leading law firms is arguing that Rangers are close to bankruptcy.
Read it for yourself. Digest. Let us do what this blog does best: discuss it in detail.
[Link removed]
There is enough material in this link to keep us slicing and dicing for weeks to come.
The decision to post this link came after weighing up several pros and cons of doing so. Ultimately, the central mission of this blog is to explode the myths and lies surrounding almost everything to do with Rangers FC in recent years. Therefore, I felt that benefits outweigh the costs. I hope that you will agree.
About rangerstaxcase
Rangers Tax Case 
P.Mc. now saying the Rangers paid the €500,000 to Rapid for Jelavic on Friday.
That would in some ways support the view of some on this blog that RFC are hoarding cash (offshore or in London) and paying out only when issues are raised in the public domain, either through the courts or press / media / internet blogs.
cheers Jean
thats another €500k off the balance sheet then
and also dismisses the claim that he was all bought and paid for
that Chic made originally
wonder when the next installment is due
If Whyte tells the laptop loyal that administrators are being appointed today where do we half the party?
*hold
Re the Jelavic situation: this Austrian newspaper confirms that Rangers still owe 500k and suggests that an additional payment is due next year.
http://kurier.at/sport/fussball/4150247.php
Predictably, perhaps, it opens with the observation that “The Scots are notoriously tight-fisted. But so tight-fisted that they fail to adhere to a written contract?” Apparently, the 500k should have been paid by August 31.
Oddly, members of the Rapid board expressed surprise that the transfer fee is being paid in instalments at all.
Thanks to everyone who has made this one of the most literate and informative blogs on the net!
BBCAlLamont Alasdair Lamont
The #Rangers owner Craig Whyte has spoken to daily newspapers today. Sadly for me, nothing for broadcasters today
secret lodge meeting in progress
Ho Ho.
A serious thought though. If we assume administration/receivership/liquidation to be inevitable before the end of the season, there will be an immediate crisis. If the cash flow is gubbed, and given the structure of the business – ie large amounts of cash received from season tickets with the recurring weekly income from the gate, merchandising, catering etc nowhere near enough to meet the wage bill then the administrators have to decide more or less immediately whether they can continue to trade. Livingston managed to fulfil their fixtures during admin because the players played for free. Anyone see Jelavic doing that? Thought not. While there is no doubt that there will be a rescue offer, it will take time for any saviour to put together a deal. Who funds the ongoing operations in the intervening period?
Will ask my journo contacts to see if I can find out what Whyte has been saying.
timtim says:
12/09/2011 at 2:37 pm
CW is obviously not comfortable in front of the cameras. He might not want his picture making him too recognisable in future either.
This is what it must’ve been like sitting on board the landing craft on D Day, waiting albeit with apprehension and hope that everything will work out to plan. We caught them on the hop, they didn’t expect this (landing) site (geddit?), guns are loaded, we are primed for the final battle, they are drinking tea and fully unaware of what’s about to happen. Then over the horizon we appear, chairs fall over, tea spilled down the uniform of the Hvn (appropriate in this context i feel?) as they jump to their feet “scheizer” (spelling?!) passes their lips.
The defences are in place, contigencies readied, but will they hold, they had asked the vermacht and luftwaffe for support, but it hasn’t arrived, and with skirmishes what ammo they have is seriously depleted……defeat is ineveitable, but fight and fight hard they will……the end is in sight………………………………………
IF Rangers require to go into administration this season then surely earlier is better for them than later on the basis of allowing them maximum time to recover from a 10 point penalty deduction. ie IF Rangers won on Sunday and went 4 points ahead they could then take the 10 point deduction and be only 6 points behind with 31 games still to play – the more games they complete the less time remaining to recover from the points lost (unless of course they somehow built up a sizeable points advantage before the big ‘A’ happened)
that might be a dream scenario but at no point will they 10 points clear. they could take a 10 point deduction and be twelve points behind too, so celtic would have to lose 4 games more…unlikely for both scenarios but I understand the thinking
Mark Dickson says:
12/09/2011 at 3:07 pm
IF Rangers require to go into administration this season then surely earlier is better for them than later on the basis of allowing them maximum time to recover from a 10 point penalty deduction
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Just what I was thinking Mark, unless the problem is that the debts are such that liquidation rather than administration is the big fear. Of course it may also be be that there is nothing rotten in the state and everyone will live happily ever after.
Its not about whats best for them on the pitch
its about whats best for Craigys wallet
I think he is just kicking the can down the road at the moment
no imminent declaration of collapse or he wouldnt have shelled
out on the Jelavic payment
No tv cameras catching him out and making him look like a BSer
no unfriendly press ,ET+Herald ,just the laptop loyal of Traynor
Chic and Keevins tucking into some succulent Spam
You see Traynor demands that Whyte speaks and if by magic
ah the power of the press lapdogs ,we dont even get to see
the extent of the interrogation just the printed report
spin spin spin
“Succulent Spam” LOL!
Auldheid says:
12/09/2011 at 2:57 pm
timtim says:
12/09/2011 at 2:37 pm
CW is obviously not comfortable in front of the cameras. He might not want his picture making him too recognisable in future either.
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he is uncomfortable in front of the cameras. This was apparent in his only other outing in front of the camera. Having said that, it will be an easier ride for him in front of the written press. They will be told not to ask certain things, and as per usual, the hacks will write down verbatim what del boy has to say. see, nothing to see here. move along now
Been reading this for a while now but 1st post.2 points(not qualified,just how I see it)
1.Although CW has said no funds will be taken from RFC for the time being,surely he’ll be adding fees and interest to monies owed,so when the axe falls,debt will be a lot higher than stated.This gives him a profit when he calls in debts.
2.Regarding ST monies,some poor fans will have bought them on the RFC finance scheme.When s^*t hits the fan,not only will they have no team to watch,but may also be left with a bill to a finance company,who have probably paid RFC up front.These fans will rember this treatment when asked to buy a few shares or any other cash contribution.
Just how I see it,may be wrong,though.
timtim says:
12/09/2011 at 3:18 pm
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superb mate, succulent spam !!!!! ha ha ha 😀
Page 2 post 49 hopefully this time.
http://www.pieandbovril.com/forum/index.php/topic/136186-rangers-takeover/page__view__findpost__p__4852072
OK, lets assume things are bad and the piggy bank empty due to HMRC grabbing £2.8M and no UEFA income thanks to Maribor
If Rangers were to go into Administation now – before the big tax bill hits – because of the small bill and other debts what would happen?
Could they simply offer the exisitng unpaid creditors a pennies in the £ deal if that was all that was in the bank? (i’m assuming that without the tax bill, there would be no single creditor owed 25%+ who could block such a deal)
Once those small(er) debts were “dealt” with – the club could effectively be debt free and just facing the big bill
but what happens to the players? Can the club offer creditors pennies in the pound but still pay players/staff their full whack? or would players have to take a hit in the pocket – and thus be free to break the contract?
Or could the club offer creditors pennies in the pound but retain millions (of ST money) in the bank to pay wages/runing costs for the season – or would they not be allowed to continue trading if they didn’t pay creditors in full?
Lets ignore the big case scenario just now, like many a rangers fan, we’ll pretend it doesn’t exist or SDM will be writing a cheque for it.
what would happen in the short term – and how would it affect whyte/ltsb’s preferred creditor status?
My current theory is that Whyte is still gambling his £1.00 on the FTTT and prepared to continue to run RFC as a football club (at minimum cost to himself and using Other People’s Money wherever and whenever possible) on the basis that him (or his funders) are covered by the floating charge whatever happens. I think his inexperience of football and cashflow problems caused by HMRC arrestment and early european exits have put a severe squeeze on cashflow and are the best explanation for recent months events – that and his dodgy practices of hoarding cash upsetting all and sundry now causing him severe PR grief.
The problem is no one knows Whyte’s motivation for getting involved in the first place. His expertise is supposedly in turning around distressed companies if possible.
Rangers were on track to reduce their loan to the bank as long as they kept winning titles but there were two risks to be overcome. The first that they needed to keep winning titles and Celtics response to that essential requirement both off and off the park.
We were one missed penalty away from doing what Malmo and Maribor subsequently did and that was deny them UEFA money and we have improved since last season whilst they at best have stood still.
But UEFA money coming in was probably taken as a given in his plans.
The other risk of course is losing the EBT, where the Bain papaers show that if Rangers lose the case and it is IS more than £15M CW, will not try to rescue them.
He was taking a punt on the latter, having done what he could to make sure any outlay on his part of his money or whatever money he was using, was protected.
If the EBT case was won by RFC he had won a watch in terms of having a business that he paid £1 for to sell. (The fact SDM let it go for £1 tells you all you need to know about SDM’s assessment of how the EBT case will go and SDM more than anyone knows the ins and outs and has access to those in the know)
THE UEFA punt was a lot less risky but a team that only wins titles with help is not going to win games where that help is not available, but not being a studier of the SPL over the past few years I doubt that occurred to him.
So that leaves him with the job of keeping Rangers going until the EBT case is decided without UEFA money (he could have borrowed against it) and he could not have imagined HMRC would be so aggressive in pursuit of the small bill.
He either has the cash or access to the cash to keep them going until EBT time or he does not. The SFA and SPL should be asking him this question not Jabba the T and his cohorts, the reason they do not is they fear the answer. All of them.
They should not, they should be planning to deal with it.
If journos are getting their steer from the Internet, then the question is what are the SFA and SPL doing to reassure themselves and the Scottish footballing public that Rangers do indeed have the wherewithall to continue and what steps have Rangers taken to prove to the SFA and SPL that they do.
And by proof I do not mean statements of intent or the cheque is in the post.
It looks like CW is out of his depth because he does not possess the personal wealth to tide Rangers over until EBT time – lets see if any jounos ask him if he has.
Mark Dickson says:
12/09/2011 at 3:39 pm
Snap. The Wisdom (or Craziness) of the Crowd in action.
I’m not crazy are you? 🙂
Not The Huddle Malcontent says:
12/09/2011 at 3:36 pm
As far as I know the Footbal First rule that HMRC are appealing against only applies to clubs under the jurisdiction of the FA. (The English one of course).
I think the players would join the creditors queue. When Motherwell went into admin they tore up players contracts and were pursued by Fraser Wishart in the Players Union. So he will be well able to advise Naisy the score (and tell his pals on Clyde).
With regard to the EBT case HMRC will want a judgement to discourage others and chase any other clubs who used them.
In whatever scenario Scottish Football – THE SFA/SPL and their pals in the media should be preparing for the worst case scenario,not kidding on it might not happen.
chico says:
12/09/2011 at 3:21 pm
Well theyread here so maybe they will report what was not asked and ask why they could not.
@spanglebhoy
think those revelations have been posted on here before
but its worth reading them again if only to remind us of the
type of character we are dealing with .
How did he ever pass the fit and proper person test
or convince Murray the club would be safe in his hands
He seems more like the perfect character you would call on
to kill the club steal the money and run away
Whyte must have built up a fair few enemies in his time
and if he treats Rfc like he has his other business’ then he
will build up an army against him .
Foolish or just so greedy he just doesnt care
bit of both imo.
Auldheid says:
12/09/2011 at 3:40 pm
The problem is no one knows Whyte’s motivation for getting involved in the first place. His expertise is supposedly in turning around distressed companies if possible.
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From the only evidence available to us the only expertise that Craig Whyte has is akin to a serial killer. He stalks his victim, gets his kicks (in his case cash) out of them, drains the lifeblood out of them and leaves them to die. There is no evidence of him turning round any company successfully. There is plenty of evidence of him making money out of distressed companies. Whatever level of distress they were in before he gets involved you can bet your bottom dollar they are a lot more distressed when he leaves.
Mark and Mark
The point about an early decision would suit them (and the game) better in football terms is a good one but I think its more serious than the loss of points.
How long can this facade that it will be all right on the night continue?
STV now confirming what P.Mc tweeted earlier re the payment to Rapid Vienna. However the STV story adds that there is still a further installment to be paid.
http://sport.stv.tv/football/scottish-premier/rangers/269942-rapid-receive-late-payment-from-rangers-for-nikica-jelavic/
spanglebhoy says:
12/09/2011 at 3:31 pm
lost me m8…?
omtom says:
12/09/2011 at 3:56 pm
Indeed, but I was trying not to judge the fella, just guess his motives in light of what is coming out as regards Rangers.
Auldheid says:
12/09/2011 at 3:52 pm
chico says:
12/09/2011 at 3:21 pm
Well theyread here so maybe they will report what was not asked and ask why they could not.
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aye, and i will look out my office window here in glasgow, and see the sun shining 😀
Auldheid,
Wasn’t having a pop. It’s just that I think we’ve got to the stage where we don’t need to question Whyte’s motives. If others can’t see what is going on then more fool them but it’s a bit like the programme “Through the Keyhole”. As David Frost would say “let’s look at the clues”
1. In Jun 2010 after a prolonged period of due diligence Ellis makes a failed bid to take over Rangers
2. In Sep 2010 Ellis sets up a company called Wavetower.
3. In November 2010 Whyte announces that he is interested in taking over Rangers.
4. In Feb 2011 Whyte and Betts join Ellis as directors of Wavetower.
5. In May 2011 after an extremely long period of due diligence Wavetower takes over Rangers and assumes their debt.
If the problems that currently face Rangers are down to the mismanagement by Whyte he doesn’t need Ellis and/or Betts help in this respect. If every crime was as obvious as this you wouldn’t need detectives, the bobby on the street could clear them up.
I don’t believe there is any other solution than Whyte and his cohorts are financially raping Rangers at the moment.
Auldheid,
Maybe Iam crazy – IF I could have bought Rangers for a POUND then I would have implemented the following
1. An apology and attempted reconciliation with HMRC over unpaid taxes and seeking clemency on the interest and fines.
2. An apology for previous sectarian bigotry and a clear statement that this has no place in the 21st century and is wholly unwelcome and unacceptable.
3. No promises about front-loaded warchests or £25M net spending over 5 seasons.
4. Daft ideas that football clubs should be run within their earned income, paying their bills and taxes and seeking best value for money in the transfer market even if that means Bosman fee transfers from SPL clubs (ie Craig Conway) instead of paying transfer fees on little known Spanish players (Ortiz) and promoting young players instead of 30 something washed up former premiership players on big wages like Healy or Bocanegri etc.
6. Using the BONUS of any European money earned to reduce outstanding debts & taxes instead of assuming or requiring as a necessity it being included in future earnings expectations.
You know crazy ideas like that!
RTC
If the FTT starts in November will it conclude then or will Rangers want to keep spinning it out?
A a point of extrme pedantry but surely a First Tier Tax Tribunal abbreviates to FTTT and not FTT ?
as the wordly accountant points out First Tier Tribunal (Tax) so it should be FTTT according to him, or shoudl that be FTT(T) as mentioned some pages back?
Mark Dickson says:
12/09/2011 at 4:32 pm
A a point of extrme pedantry but surely a First Tier Tax Tribunal abbreviates to FTTT and not FTT ?
——
You want pedantry?
According to the official website, it is known as “First-tier Tribunal (Tax)” hence it should be known as the FT(T)..
FF are rejoicing that Mr Whyte supposedly ejected Spiers from the proceedings at Whyte’s paper press conference this afternoon. Apparently, they have the usual impeccable sources inside the Cesspit alerting them to this wonderful news.
I don’t know if there is any truth in it – time will soon tell. However, were such a confrontation to take place in the presence of fellow NUJ members, then surely there would be a mass walkout of hacks attending? What does it say about the Laptop Loyal if they are prepared to sacrifice one of their colleagues and their journalistic principles merely for the sake of one heavily censored non-exclusive article?
Tommy says:
12/09/2011 at 5:01 pm
FF are rejoicing that Mr Whyte supposedly ejected Spiers from the proceedings at Whyte’s paper press conference this afternoon. Apparently, they have the usual impeccable sources inside the Cesspit alerting them to this wonderful news.
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Should be confirmed by a tweet from the little twat.
not the huddle malcontent
1. no
2. no
3. it’s up to Lloyds whether or not there is an actual cash crisis at Rangers, it’s up to Whyte whether or not there is an apparent one.
imo
http://www.philmacgiollabhain.ie/rangers-the-clock-is-ticking/#more-1583
ramsay smith
11/9/11 at 11.15 pm
Correct re the Bain intended arrestment, but what of HMRC’s arrestment in execution where the Bank require to release the £2.8M to HMRC after 14 weeks, which takes us up to on or around the resumed FTT-(that is to say,hearing, but not decision, which will be somewhat later).
Unless,of course,there has been an “objection” –presumably, competent– by RFC within the 14 weeks (“BAD Act”).
Never having specialised in insolvency, I am not clear what would constitute a competent objection here and perhaps no-one really knows, as much, if not most, of the provisions of the BAD Act have still to come into force by statutory instrument.
That said, I totally concur with other contributors regarding Sam’s intellect–or rather lack of it–and the sniping by Jabba the T (10 bellies) regarding “internet snipers”.
Finally, loved Whittaker’s admission that “the players only know about any developments in the HMRC case or the club’s financial position from what they read in the media.”
So, that would be “sfa”, then?
I too love the smell of admin. in the morning.
next few expected hurdles are-
1. bain case- I’d expect CW to contest unfair dismissal, but not vigorously contest the possibility of insolvency
2. accountants wanting to be on record with an accurate audit- it would be somewhat surprising if one was released, but I’m inclined to believe that it’s possible
3. how long can the CW regime effectively say nothing- quite a while, expecting a major heated public blamestorming set of arguments that doesn’t clarify a single thing- the excitement of it all will effectively cover for the lack of content
going under before november looks very unlikely.
imo
Mark Dickson
We are clearly both barking mad. 🙂
TomTom
I did not think you were, any impression I might have comes from the limitations of this nevertheless incredible medium to share thoughts. In that respect what you set out is the first time I have seen it in that form and in that form your case is persuasive.
It takes time and repetition for that case to be owned by others so that it becomes crowd memory without the need to reprompt.
It can get frustrating to repeat the same point until it is bought into as a factor but that again is down to the limitations of blog communication not individual unwillingness to buy in.
Your case comes into “if it walks like a duck” category 🙂
Ps Radio Scotland saying interesting developments at Rangers to be reported circa 5.30.
Not strictly speaking on message but G Spiers has just rubbished reports of his ejection from the press briefing despite much elation on FF.
Excuse my ignorance; administration, then receivership, followed by liquidation.This seems to be the order of any insolvency event. But is this the legally correct sequence? I’m sure I’ve missed a post explaining this.
This is my first (and hopefully last) post on this auspicious site.
I’ve been following the debate avidly here for a number of months and would like to take this opportunity to thank RTC and the fine band of other contributors who have provided forensic analysis and fascinating debate to the issues facing Rangers, especially in light of the collective refusal of the nation’s journalists to register any interest in the subject.
So why have I not felt compelled to post before?
Quite simply, I had no insight into what was happening which added to substance to the debate. However, I’ve noticed over the last few weeks that the numbers of contrbutors who have nothing to add to the disucssion other than their partizan views, on both sides, has risen sharply. Perhaps, this is understandable as events seem to be approaching a tipping point. However, the main strength of this site has been, till now at least, the quality of its content and this has definitely been lowered recently by the higher volumes of posts
So, I will now end my only post on this blog with a request which is aimed at restoring the high quality which previously existed – if you have nothing other than your opinion to add to this blog – then please take that opinion to another site.
I’m not going to enter any discussions over my request, either heed my request (and the spirit in which I am making the request) or don’t.
there’s 2 other possible spanners, which are not particularly set on any particular time-scale
1. sniffing. If a journalist manages to dig up, for example, a ticketus denial that a deal has gone through, or any kind of statement from Lloyds over who holds how much of the £18 mil debt against the floating charge, or if for whatever reason(which I must emphasise complete ignorance of) the police decide it is in their interests to peruse the current state of Rangers’ finances….then the game changes
2. squealing. If there is any kind of plan which is unethical, or illegal, the pressure of its possible failure may lead someone to ‘fess up
Ps Radio Scotland saying interesting developments at Rangers to be reported circa 5.30.
Suck form FollowFollow says he will be on radio scotland Rangers special tonight at 6.10pm
(I missed the 5.30 news- any updates)