We don’t do walking away either


The tedium of being an executive secretary at Ibrox in recent years:

The more you refuse to hear my voice. The louder I will sing.

On to more pressing matters: yesterday’s excitement- the deal with Ticketus and The Blue Knights. As the emotional pendulum takes its swing to the other extreme, we will try to place this event its proper context.

For those who wish Rangers to complete a CVA and maintain the continuity of 140 years of history, it is certainly good news. It was one of four major walls that needed to be scaled. However, the other three are much higher.

– Craig Whyte’s Debt & Floating Charge
Even on this board, debate has raged over whether the Ticketus deal would extinguish Craig Whyte’s floating charge over Rangers’ assets. At best it means a knock-down drag out court fight. If Whyte wins, then his only practical way to extract repayment is to force the liquidation of Rangers FC. If he loses this claim, it would be another wall scaled. We would need to see the actual Ticketus contract to place odds on an outcome and neither side have made a convincing argument in public so far.

– Craig Whyte’s Shareholding
Whyte holds all of the good cards as long as he owns 85% of the club’s shares. There are those who say that this transaction can be nullified due to ‘financial assistance’ rules against borrowing against a firm’s assets to buy its shares. They might be confusing debt with equity! While Mr. Whyte now freely admits that he is not a billionaire, I am quite sure that he managed the princely sum of £1 to buy his Rangers shares from his own pocket. Even the SPA (still available on this site) does not offer negation of the contract as a remedy for any failure to fulfill promises. (There is a chance of Whyte’s debt and floating charge being cancelled as a result of certain terms, but these are so loosely worded that it is hard to imagine that they can be enforced). Short of an as-yet-unpublished aspect of the agreement surprising us, it would appear to me that Whyte’s grasp on 85% of Rangers shares should be quite secure. This means that he will demand a price for giving up control.
I am quite sure that Whyte’s treatment from the directors of the old board and the assorted supporter banners blaming him for all of Rangers’ ills will have done little to warm his heart about the need for ‘the big hoose to stay open’.

– HMRC & The Big Tax Case
With about £15m owed in unpaid PAYE, NIC and VAT from just the last year, Rangers are in quite enough bother with HMRC. Then there is the Big Tax Case. Allowing for trimming at the edges, my estimate is that Rangers will owe about £20m in unpaid taxes and about £20m in accumulated interest. With a total of about £55m plus a penalty tribunal still ahead, the only way anyone in their right mind would buy The Rangers FC plc as a continuing entity would be if HMRC were to do a deal that paid them pennies on the pound and forgot all about the penalty (which could add £15-20m more to the bill). Many point to the logic of “something is better than nothing”. This might be true, but this situation is more complex. If Channel 4’s reports are correct and Rangers directors were engaging in activities such as document shredding, it will mean that ill-will to the club will stretch back further than just the arrival of Craig Whyte. If Rangers have been involved in a decade of persistent lying to the government, it could make a deal difficult. A pennies on the pound deal for such a company would signal that paying taxes in-full and on-time is for mugs; the smart money takes advantage of every dubious scheme going and pays a tiny amount even if caught. There is an issue of ‘moral hazard’ in letting Rangers get off lightly.

To assess the odds of Rangers avoiding liquidation you would take the probability of Rangers scaling each of these walls and multiply them together. As any smart 14-year old can tell you, when you multiply numbers smaller than one together you get a smaller number. The arithmetic of this compound probability problem does not favour Rangers’ survival. With one wall scaled already, their chances of survival are not zero either. However, playing the odds, avoiding liquidation does seem improbable.

About rangerstaxcase
I have information on Rangers' tax case, and I will use this blog to provide the details of what Rangers FC have done, why it was illegal, and what the implications for what was (updated) one of the largest football clubs in Britain.

1,500 Responses to We don’t do walking away either

  1. Macfurgly says:

    14.1 It is the Joint Administrators‟ understanding that a floating charge granted to The Governor and Company of The Bank of Scotland dated 8 March 1999 (“the Charge”) was assigned to RFC Group.
    14.2 The Joint Administrators have sought to clarify the level of indebtedness, if any, due to RFC Group in respect of this charge and are liaising with RFC Group in respect of this matter. Creditors will be provided with an update in due course.

    Good luck with your liaising.
    Don’t hold your breath Creditors.

    Would the conversation include, “Where are RFC Groups assets now? Liberty Capital?, Liberty Corporate? Or have they moved on again?

    Given that they have known all along what advice was (allegedly) given by their associates, carefully expressed in Section 5 of the report, why do they need to liase at all?

  2. Derek says:

    Domaine Jessiaume says:
    05/04/2012 at 11:14 pm
    3 0 i
    Rate This
    The unknown amounts leave D&P some vital wiggle room. TBC entries will be beefed up just enough to make HMRC come in at 24.9%.
    ===================================================
    Not likely. And claims have to be proved. And can be challenged.

  3. diegodargo says:

    I honestly feel for the genuine Rangers fans. If I were one of them I would be feeling very, very embarrased tonight. The clowns running that once proud club don’t appear to have being paying anyone anything, judging by the creditors list. What an absolute disgrace!!!!

    Rant over

  4. ds67 says:

    http://www.scotsman.com/news/walter-smith-and-johnny-beattie-to-be-honoured-for-sevices-to-glasgow-1-2218942

    is this a joke?? walter smith services to Glasgow

    Former Lord Advocate Dame Elish Angiolini, who grew up in Govan, was recognised for her services to law and justice.
    remember holly grieg

    please end this its becoming painfull

    they are bust end of story goodnight

    what part of bust dont they undertstand

  5. twopanda bears says:

    Havin` a bad time with the missus today – said i spent too much time on RTC – no three panda`s

  6. Domaine Jessiaume says:

    960jeannie960 (@960jeannie) says:
    05/04/2012 at 11:26 pm

    Don’t know, I’m afraid. Others I have read on here are qualified to give an informed opinion about HMRC, but there’s a reason D&P have not provided even guesstimated figures for some creditors but the have done so for HMRC.

    I know D&P are officers of the court, and I find any conspiracy theory about this difficult to believe myself, but there seems to be an inconsistent approach here for some reason.

  7. Derek says:

    selfassessor says:
    05/04/2012 at 10:27 pm
    2 4 i
    Rate This
    They don’t deserve to and I hope and pray that they don’t, but I’m starting to think RFC(IA) will get away with it. Scottish people proving to be too gullible – look how your dear leader has led you all a merry dance. AS blows enough wind to power a renewable energy policy and you’re all taken in by it. Now its “Alex Tomo’s on the case and on our side”. The establishment in Scotland is to organised and in control for this to play out as justice suggests it should, I’m sorry to say. Hope I’m wrong and hope the good folks on this blog will tell me why and put it all right!

    …….and Derek I’m sober. Feels like I woke up and smelled the coffee!
    =========================
    You are wrong
    You are a touch patronising
    And it clearly wasn’t coffee you were sniffing

  8. nipples says:

    If I was King of HMRC I would go after any and every aspect of this stinking deal through the courts, coming from any and every angle that yielded success, using every arm of government I could muster.

    The whole thing is rancid. Murray, Lloyds, Collyer Bristow, Pritchards, Ticketus, Craig Whyte, MCR / D&P. Rotten from start to finish.

    Find ways to tie this sordid little scheme up in the courts from now to the end of time if possible. The folk are over confident piss takers, so challenge what they are doing at a fundamental level.

    Time is the one thing that is on HMRC’s side here and very much against this crowd of wideboys. This crowd need a quick solution in order to keep the assets ‘warm’, i.e. part of an SPL going concern, and therefore high value.

    If RFC can’t complete the season or start the next, for whatever reason, then their seamless SPL existence is put in real doubt. Try to ensnare Ibrox and MP into a protracted legal battle / nightmare which is likely to see several appeals and counter appeals before it is finally resolved, because then this crowd are going to lose a lot of money. That is the only language they understand. Hit them in the pocket.

    So I have no problem with HMRC being wasteful and vindictive when they are faced with utter piss taking like we are seeing here with RFC. In fact I actively encourage HMRC to be as vengeful, nasty, and hurtful as they can possibly be, by all means fair and foul.

    (If anything is going to really kill RFC here it is the fact she has allowed herself to become the battle ground in a potentially very nasty fight between some heavy hitters. By the end of this RFC might resemble the Somme, circa 1916.)

  9. Goosy says:

    Can HMRC sieze Ibrox and MP in lieu of payment of BTC if they agree to a CAV which excludes the BTC?

  10. TheBlackKnight TBK says:

    Does “trading whilst insolvent” get a mention in the ‘Maladministration Document’? 😉

  11. yojimbo56 says:

    Private Land says:
    05/04/2012 at 11:22 pm
     0 0 Rate This
    Newsnicht:

    “They are also watching this down south with other clubs in administration. They will want to send a message to those clubs and to other businesses who owe HMRC”

    ############

    PL

    Hope you accept that I don’t want some unsavoury stitch-up that allows RFC (DAVID MURRAY – lets name the real guilty party here and forget the little asset stripper) to evade their fiscal/sporting responsibilities; but if HMRC draw a line in the sand with Rangers, it is going to have a massive impact, with no room to manoeuvre, when they start calling in the gazillions that could be owed by English clubs.

    Surely the political pressure involved in opening this can of worms would be enormous and might lead HMRC to (be made to) blink?

  12. Domaine Jessiaume says:
    05/04/2012 at 11:37 pm

    I think that it’s just anxiety creeping in again as it’s like we never get to see the full picture. Thankfully with people like Derek et,al, who have the knowledge and experience to explain things, we will be better informed in the coming days 🙂

  13. Ianc says:

    Damn

    Germans bidding I knew it.all

    It was Heinz fault with his crap version of GB hit “Telstar ” that started all this webnet stuff and bloggy crap that deprived us proper journalists of a good lunch.

    See its always them.

    (ed Send this to the Sun they will love it)

    TA Ta (send my bill To Murdoch Luigi)

  14. Hoopy 7 says:

    Just back in and scanned through most of the posts.

    Not had time to read report but if any of you remember my posts from yesterday or today I hinted that there would be a long rambling narrative about how much they have done. A bit like running on a treadmill, lots of puffing and panting, but rooted to the spot.

    Open to correction but from picking through posts it seems that they include Bigot dome as asset but don’t know status of charge, and ownership was previously stated to be with a company not in administration so how can they include it?

    As I have said repeatedly these guys are MBBCW’s men and are laughing all the way to the bank.
    If you were guaranteed 8 weeks work at £25 grand per day would you go after 6 weeks?

    Any attempt to prolong this administration beyond the 8 weeks should be blocked. As previously indicated it is not the size of the debt to HMRC but the manner in which this debt has been contrived, by evasion, which will determine how Hector reacts. HMRC must send out a warning.

    The prospect of a parachute is unthinkable, lets hope it doesn’t happen. Maybe there won’t be any strings for the parachute. I believe that MBBCW has a monopoly on string for his puppets.

    I think it was Tenerifetim who said MBBCW has played a blinder. I agree but I don’t think he was playing by himself. He needed other Players, Collyer Bristow, Sir. Minty, D&P (before and during administration) and the guy in Ticketus who authorised the transfer of funds.

    I will try and read the report, particularly to learn who owns Ibrox & Murray Park and who has what charge over them. This is the least information which D&P should have gleaned, otherwise what are they selling?

  15. Private Land says:

    RayCharles says:

    05/04/2012 at 10:54 pm
    ___________________________________________

    Yes, I’m sure they would (although this hasn’t been confirmed) but the administators don’t have to accept it.HMRC in that case would have recourse to the courts.

  16. Hibee says:

    Woman on Newsnight seemed to think the hvn could shaft 90% of the money owed to creditors with a CVA but HMRC are unlikely to agree to it. Cheat FC 2012.

  17. nipples says:

    Scottish people proving to be too gullible – look how your dear leader has led you all a merry dance.

    =====

    Aye Scottish people have a problem with our dear leader yet it is down south that Dave Cameron is prostituting himself to any old sleazeball for 250 grand a ride.

    You might want to clean up your own putrid whorehouse of a parliament before lecturing us with your guff.

  18. Domaine Jessiaume says:

    Derek says:
    05/04/2012 at 11:34 pm

    Happy to defer on this, Derek.
    ===================
    On an OT note, the money recovered from Whyte I referred to was in connection with services provided in connection with the Ibrox Disaster Memorial the previous January (2011). Classy, huh? Dignity FC indeed…

  19. Private Land says:

    ParmaHamster

    Careful what you wish for……..

    Leggo Latest

    Thursday, 5 April 2012

    REPORTING SCOTLAND BOSS DIARMID O’HARA AND CELTIC- Exclusive

    DIARMID O’HARA, the man in charge of BBC Scotland’s flagship news programme, Reporting Scotland is a member of the Celtic Family….

    In the truest sense.

    For Diarmid O’Hara is the great-great grandson of one of the co-founders of Celtic Football Club, John O’Hara.

    And Diarmid’s brother, Brendan O’Hara, who also works in television, was the man behind a recent project to restore the grave of John O’Hara, who was one of Celtic’s first club secretaries.

    Perhaps that explains the pro-Celtic bias and anti Rangers agenda many people perceive as being endemic when it comes to the Reporting Scotland output, over which Diarmid O’Hara reigns as the supreme ruler.

    Perhaps it also explains that even if O’Hara is not there, those wishing to please him, win favour from him and increase their chances of promotion, will adhere to what they believe is Diarmid O’Hara’s agenda, without even needing instructions from this great-great grandson of one of Celtic’s founders.

    This week has provided two starkly contrasting examples of the way similar stories are viewed on Diarmid O’Hara’s Reporting Scotland.

    The way one was treated and the way another was entirely ignored.

    Despite both stories having been given differing degrees of coverage in Scottish newspapers. Let’s start with the first story which is topical and timely.

    It burst like a bombshell as the splash in the latest edition of Ireland’s mass circulation Sunday World and it focussed on a foul, bigoted, sectarian rant from the General Secretary of the OFFICIAL Celtic Supporters Association, Joe O’Rourke.

    In a chilling Tweet on his Twitter account, O’Rourke, a former shipyard worker and trade union activist, raved that it was a pity all the Protestants who helped build the Titanic didn’t sailed on the doomed liner and drown when the Titanic went down 100 years ago this month.

    It was a story which I saw picked up and followed up poorly by what looked like a Sun newspaper afraid to upset Celtic. A few paragraphs and an apology from the confirmed bigot, O’Rourke, was what the sinking Sun thought it was worth.

    The Daily Mail produced a more comprehensive story, pointing out that O’Rourke is facing a police investigation and quoting a still obviously unrepentant bigot, O’Rourke as saying: “I DIDN’T THINK IT WAS OUT OF ORDER.”

    And this is a man who often sits down with Celtic’s OFFICIAL chief executive, Peter Lawwell. More on Lawwell later.

    But from the great-great grandson of Celtic founder, John O’Hara, the man in charge of BBC Scotland’s Reporting Scotland, Diarmid O’Hara……

    NOTHING!

    It was as if the story did not exist. As if it was unimportant. Or as if it did exist, was important, but was best swept under the carpet.

    Now, for a moment, indulge me. Let us just for a moment imagine the leader of a Rangers fans’ group had made a similar comment about Roman Catholics.

    What do you think would have been the reaction of the Reporting Scotland news team ruled over by that member of the Celtic Family, Diarmid O’Hara?

    Do you think a reporter would have delivered a piece to camera standing outside Ibrox Stadium?

    Do you believe Peter Kearney, the Roman Catholic Church in Scotland’s outspoken spokesman, would have featured, foaming at the mouth with rage?

    Would a Roman Catholic clergyman, a lowly priest, or an archbishop, perhaps, would have been rolled out to express his disgust?

    Maybe even the man who writes the wee tunes and who is always offended by the majority of people in Scotland, Jimmy McMillan, would have been afforded a platform. Do you think so?

    Me too!

    And if you don’t believe me then fast forward 24 hours from when Diarmid O’Hara’s Reporting Scotland ignored the story about Joe O’Rourke, the General Secretary of the OFFICIAL Celtic Supporters Association calling for Protestants to be drowned and let’s examine another story.

    This time about comments which have upset the hierarchy of the Roman Catholic Church in Scotland and which the BBC Scotland’s Reporting Scotland programme, which is in the iron grip of Celtic Family member, Diarmid O’Hara, went into outraged overdrive to cover.

    It concerned the remark made on Facebook by an Scottish National Party local council candidate – ONLY a CANDIDATE mind you.

    Lyall Duff, who is standing for the SNP in North Lanarkshire, criticised two Roman Catholic midwives after their high profile legal action for the right to boycott abortions.

    Diarmid O’Hara’s Reporting Scotland was all over that story like a rash. Hackles in the ruler’s office inside the BBC Scotland Pacific Quay headquarters had obviously been raised by Lyall Duff’s comments in a way they had not been by the dreadful sectarian stuff which spewed from Joe O’Rourke, the General Secretary of the OFFICIAL Celtic Supporters Association who wants to see Protestants drowned.

    The way these two similar stories were approached by BBC Scotland’s flagship news programme, which is under the complete control of Celtic Family member, Diarmid O’Hara, present a stark contrast.

    Never before have those who believe BBC Scotland’s Reporting Scotland is pro Celtic, been given more vivid evidence to support those allegations.

    …….
    AND…….

    JUST a wee reminder of the links which exist and lead from conman huckster Craig Whyte to the administrators he appointed, Duff and Phelps.

    The Duff and Phelps Two, Paul Clark and David Whitehouse, would do well to take into account the public’s perception of these links.

    When Whyte conned David Murray – as David says – out of Rangers for a quid, he was advised by David Grier, who is a senior partner in Duff and Phelps.

    When Rangers moved into administration, trickster Whyte moved heaven and earth to ensure his pal David Grier’s company, Duff and Phelps, were given complete control of Rangers.

    Clark and Whitehouse then delivered a very public pledge that David Grier would have nothing to do with the company in which he is a senior partner, Duff and Phelps’ administration of Rangers.

    Clark and Whitehouse were then caught red handed smuggling the very same David Grier into a meeting with David Murray.

    On top of which there have been a number of peculiar statements made by Duff and Phelps in the six weeks since they became the Rangers administrators.

    Many of them contradictory and many of them seemingly lacking in logic and clarity.

    All of which has led some serious people to be seriously suspicious of Duff and Phelps, their senior partner, David Grier and Clark and Whitehouse.

    This reminder is not much aimed at Rangers supporters, as being for the benefit of Duff and Phelps, the firm’s senior partner, Craig Whyte’s pal, David Grier, along with Paul Clark and David Whitehouse.

    They are all being closely watched.

  20. The Iceman says:

    They are totally screwed – and no amount of machinations can change that. These debt figures are just so huge that the public will go ape if Rangers walk out of the other side still in business in the SPL. the focus will now shift from “poor gers cheated by big bad craig Whyte” to” nasty scumbag tax cheating, football cheating gers run by our number two bankruptcy baron in SDM” he will become another Sir fred I reckon – shunned and reviled and with pressure on to remove his Sirness!! – and the politicos who rode in on day one will vanish ( they have already). Even the red tops in a bid to justify their existence will all start breaking news that they have copied off here and the eulogies to all things gers will be replaced by howling outrage.

    They can’t agree a CVA; even a CVL will require evidence that they can trade profitably – every day just adds to the debt mountain. I think the public mood will turn – the truth will disgust and the sectarian, vile Rangers will be brought to the fore as they sink into the mire of despair of their own making.

    A Newco? How? When? Where? Without goodwill and a massive blind eye it’s impossible. I think the mood music has shifted – Of course I could be wrong. PM could have his CVA at 10p in the pound with smiling Hector by Wednesday and all will be hunky dory in the Big Hoose – but I think not!!!

    .Deep joy!!

  21. Ianc says:

    Derek

    what our heros only profited from the Ibrox disaster thing – truly?

  22. The Iceman says:

    They are totally screwed – and no amount of machinations can change that. These debt figures are just so huge that the public will go ape if Rangers walk out of the other side still in business in the SPL. the focus will now shift from “poor gers cheated by big bad craig Whyte” to” nasty scumbag tax cheating, football cheating gers run by our number two bankruptcy baron in SDM” he will become another Sir fred I reckon – shunned and reviled and with pressure on to remove his Sirness!! – and the politicos who rode in on day one will vanish ( they have already). Even the red tops in a bid to justify their existence will all start breaking news that they have copied off here and the eulogies to all things gers will be replaced by howling outrage.

    They can’t agree a CVA; even a CVL will require evidence that they can trade profitably – every day just adds to the debt mountain. I think the public mood will turn – the truth will disgust and the sectarian, vile Rangers will be brought to the fore as they sink into the mire of despair of their own making.

    A Newco? How? When? Where? Without goodwill and a massive blind eye it’s impossible. I think the mood music has shifted – Of course I could be wrong. PM could have his CVA at 10p in the pound with smiling Hector by Wednesday and all will be hvnky dory in the Big Hoose – but I think not!!!

    .Deep joy!!

    reposted hvnky dory – wisnae as it turned out!

  23. The Iceman says:

    They are totally screwed – and no amount of machinations can change that. These debt figures are just so huge that the public will go ape if Rangers walk out of the other side still in business in the SPL. the focus will now shift from “poor gers cheated by big bad craig Whyte” to” nasty scumbag tax cheating, football cheating gers run by our number two bankruptcy baron in SDM” he will become another Sir fred I reckon – shvnned and reviled and with pressure on to remove his Sirness!! – and the politicos who rode in on day one will vanish ( they have already). Even the red tops in a bid to justify their existence will all start breaking news that they have copied off here and the eulogies to all things gers will be replaced by howling outrage.

    They can’t agree a CVA; even a CVL will require evidence that they can trade profitably – every day just adds to the debt mountain. I think the public mood will turn – the truth will disgust and the sectarian, vile Rangers will be brought to the fore as they sink into the mire of despair of their own making.

    A Newco? How? When? Where? Without goodwill and a massive blind eye it’s impossible. I think the mood music has shifted – Of course I could be wrong. PM could have his CVA at 10p in the pound with smiling Hector by Wednesday and all will be hvnky dory in the Big Hoose – but I think not!!!

    .Deep joy!!

    reposted hvnky dory – wisnae as it turned out!

    re-re- posted

    and shvnned was indeed shvnned

  24. Johnboy says:

    Right, let’s get this straight:
    JANUARY 2011: MCR (now Duff & Phelps) are hired by Liberty Capital (Whyte) to negotiate with Lloyds Bank as part of the Rangers takeover talks.
    APRIL 2011: MCR reach agreement with Lloyds over £18m debt to be repaid. MCR then go with Whyte to meet RFC’s Independent Directors’ Committee, where he claims Liberty Capital has assets to fund acquisition and make additional funds available to Rangers.
    MAY 2011: MCR is hired by Liberty Capital to provide advice to Whyte’s management team at Rangers, prepare a short-term cash flow forecast review and liaise with HMRC over Small Tax Case.
    JUNE 13, 2011: MCR provide HMRC with a formal update which includes an overview of Rangers’ projected working capital shortfall in the following three months, an overview of the Company‟s financial position and an assessment that the Company would be unable to continue to trade in the medium term without the introduction of third party funds or shareholder support. They offer of an immediate payment on account of £200,000 to HMRC and request further time to assess possible new sources of income for Rangers.
    AUGUST 2011: Liberty Capital hire MCR to conduct a review of Rangers’ longer-term financial forecasts and assess the options available to the company. This includes capital raising and various restructuring options. In the meantime, MCR also monitor the cash flow of Rangers and assist with further discussions between Liberty Capital, Rangers and HMRC.
    SEPTEMBER 2011: The HMRC element of MCR’s engagement is terminated.
    NOVEMBER 2011: Following ongoing dialogue with Liberty Capital and Rangers regarding fundraising and restructuring options, Rangers engage Duff & Phelps (new owners of MCR BC) to review the options available to Rangers should it become insolvent, together with an assessment of the consequences of any possible insolvency proceedings. This work involves regular dialogue with HMRC. Further discussions are held with HMRC, which involve the injection of third party funding but these further agreements are not honoured by Rangers FC PLC.
    DECEMBER 2011 and JANAUARY 2012: Duff & Phelps hold a number of meetings and discussions with Rangers FC PLC . During this time Duff & Phelps are also requested by Rangers to restart discussions with HMRC on its behalf regarding both the Small Tax Case liability, its associated penalty of £1.3m and arrears of PAYE/NIC and VAT that had continued to accrue since August 2011.
    FEBRUARY 2012: Clark and Whitehouse are appointed joint administrators of Rangers FC PLC.

    So Duff and Duffer have been involved with Whyte’s takeover almost from the start and appear to have been his “go-to guys” for financial advice.
    YET, Duff & Duffer claimed: “Having regard to the IPA‟s ethical guidelines, they considered that the LIMITED SCOPE of previous engagements DID NOT CONSTITUTE A MATERIAL PROFESSIONAL RELATIONSHIP with the Company.”

    Now Duff & Duffer claim they can’t confirm the size of Whyte’s Fixed Charge or Floating Charge, are also unaware of the full nature of the Ticketus claims, and refuse to reveal the new valuations of Ibrox and Murray Park for reasons of commercial confidentiality.
    Put simply: THEY ARE AT IT.
    Just wait till they reveal the FULL details of the shenanigans of Whyte, who they have advised all the way through this delicious farce.
    I have a feeling that the best (or worst, depending on your allegiance) is yet to come.

  25. Gully says:

    There has been some comment on and derision of the valuation shown for Ibrox and Murray Park.

    I’ll leave it to a surveyor to explain in detail but my understanding is that the balance sheet valuations will have been carried out in accordance with the requirements of the RICS Red Book. For specialist property such as a large sports stadium it is not market value (presumably because, by definition, there is no market for specialist property) but on the basis of something like net present value which is an assessment of the current value of future income generated by a specific use of the property by a specific user.

    If that is right it is easy to see how the balance sheet valuation could be so much higher than an “open market” valuation which would have to take into account a very limited pool of potential purchasers.

  26. Ianc says:

    Chapeau Johnboy

  27. nipples says:

    Johnboy that is a magnificent summary.

    I only wish I could find words to express my raging disgust at these slime balls.

    “SEPTEMBER 2011: The HMRC element of MCR’s engagement is terminated.’

    Yeah… would not want to have a conflict of interest problem come February time would we…

    I really dislike these guys.

  28. Lucculent Sam says:

    nipples says: 05/04/2012 at 6:57 pm

    How can Ticketus be a creditor of RFC Plc if the money was never received by RFC PLc?

    It’s not necessary for someone/something receive money in order to establish that they must repay that debt. This should be obvious. I could take out a loan to buy a car for my daughter and expect her to meet the repayments. She’d become a creditor of the bank of mum and dad (again) even though she didn’t actually receive the money for the car. (If she had, she’d have spent it on shoes. :-() When someone buys a house, the bank doesn’t give the money to them. Saying they didn’t receive the cash does not provide a defence for failing to repay the mortgage or not acknowledging their debt to the bank. Though I’m sure Minty and the MBB will have these lame excuses ready.

    The fact is Ticketus have been promised 100,000 season tickets that RFC(IA) have to fulfill. The club “owes” these to Ticketus. Therefore Ticketus are a creditor for the wholesale value of those tickets. QED.

    Maybe that debt will not crystallise if RFC(IA) is liquidated, maybe it will. Nobody can say for sure, not even Lord Hodge who heard the recent case at the Court of Session. However for accounting purposes that means the Ticketus debt should be included as a liability on RFC(IA)’s books, even if it’s just a potential liability at the moment. What Duff and Duffer announced today was all the debts that RFC(IA) has accumulated and this has to include what’s potentially due to Ticketus.

    It’s fairly clear where most of the Ticketus dosh went. £18M of it repaid the LloydsTSB overdraft. Another £3-4M? was sloshing about a Collyer Bristow account. I guess the balance went in fees and interest to whoever advanced the MBB the £28M that he used to “prove” he had the money to get control of RFC(IA). That might well have been the MBB’s now shut down stockbroking business, Pritchards. It was doing naughty things with client funds.

  29. Andy says:

    THE Germans have pulled out of the bidding war for Rangers.

    SunSport understands the consortiums from America and Singapore could follow them.

    That would leave Paul Murray and his Blue Knights as the last men standing in the fight to seize control of the Ibrox giants.

    Four bids made Wednesday’s 5pm deadline, including an offer from a mystery German-based company.

    But after detailed discussions with the administrators Duff & Phelps yesterday, it became clear that bid would NOT be considered as a viable option.

    Now in a fresh twist SunSport has learned offers from Singapore and the US are also struggling to stand up to scrutiny.

    It’s believed that the American offer, worth £25million, was lodged by investors who were part of the consortium put together by Club 9 Sports, who pulled out of the running on Tuesday.

    Business magnate Bill Ng is the major figure in the Far East group.

    But both parties are now seriously considering their options after the magnitude of Gers’ debt was laid bare yesterday.

    Bean-counters estimate Gers owe creditors a staggering £134m. That figure could scare off rivals and leave Murray in pole position.

    Joint administrator David Whitehouse confirmed the Germans are now out of the race. He said: “I can confirm we will consider further three of the four bids. We have had a number of discussions with the parties today.”

    The Blue Knights’ bid is believed to be worth £10m, and they have an agreement in principle with Ticketus to wipe £17m off the debt they are owed by Rangers.

    Murray would look to exit administration via a CVA, avoiding the doomsday scenario of liquidation.

    Whitehouse admitted: “We can now see light at the end of the tunnel whereby the club exits from administration and can focus upon success on the pitch. Exit from administration does look achievable by the end of the season.”

    http://www.thescottishsun.co.uk/scot…#ixzz1rD1hpurF
    ____________________________
    the rumour was that the murray bid was 10m how can they possibly get a cva out of that

  30. Derek says:

    Goosy says:
    05/04/2012 at 11:41 pm
    0 0 i
    Rate This
    Can HMRC sieze Ibrox and MP in lieu of payment of BTC if they agree to a CAV which excludes the BTC?
    ==========================
    HMRc can’t seize anything while the company is in Admin – but not sure why you suggest excluding the BTC liability from any consideration of a CVA. They can’t just choose to claim only some of the tax debt in the Administration – saving some back for later. They have to claim all debts that were in existence at the relevant date of Administration. Any CVA takes effect on the date of the creditors meeting approving it and binds every creditor whether or not he attended and voted at the meeting and whether or not he had notice of the meeting. A CVA gives the debtor company full legal protection from creditors. This means that once in place, no creditor can pursue the debtor company for payment of its old debts.

    There won’t be a CVA.

  31. I'm so Gwlad Gwlad says:

    Barcabhoy says:

    05/04/2012 at 10:58 pm

    Bang on Barcabhoy…….and what will Ticketus do then?……..Let’s Watch

  32. Not The Huddle Malcontent says:

    Leggo Latest

    Thursday, 5 April 2012

    REPORTING SCOTLAND BOSS DIARMID O’HARA AND CELTIC- Exclusive

    ==============================================================

    I bet EVERY story (and they are stories in the truest sense) Leggat scribbles is “an exclusive”

    lets face it, is there anyone (outside of a carstairs mental home) who’d print this pish?

  33. scapa says:

    Derek says:

    06/04/2012 at 12:11 am

    According to the Sporting Intelligence article, HMRC lost £39.5M in the 21 cases they looked at, I am amazed that anyone believes that HMRC will just waive through the loss of potentially twice that amount, and watch RFC(IA) sail on on its merry little way.

    Dream on

  34. Private Land says:

    yojimbo56 says:

    05/04/2012 at 11:43 pm

    PL

    Hope you accept that I don’t want some unsavoury stitch-up that allows RFC (DAVID MURRAY – lets name the real guilty party here and forget the little asset stripper) to evade their fiscal/sporting responsibilities; but if HMRC draw a line in the sand with Rangers, it is going to have a massive impact, with no room to manoeuvre, when they start calling in the gazillions that could be owed by English clubs.

    Surely the political pressure involved in opening this can of worms would be enormous and might lead HMRC to (be made to) blink?
    ________________________________________________________________________

    TBH I don’t know the answer to that. Before RTC gave us this goldmine/outlet I hadn’t a clue about any of this at all.

    There are some things which are a matter of fact here, such as there is a large tax bill and it is part of a £135m creditor cesspool.

    There are other things that are not matters of fact, like the allegation that Rangers knew they were evading tax but carried on regardless; or the further allegation that they failed to register a couple of dozen players correctly with the SFA/SPL/UEFA. I equate those to the allegation that Australia exists. I can’t prove it because I’ve never been there, but I’m pretty damn sure it is.

    Then there are the things we can only guess at, like what will HMRC actually do when the chips fall; and what will the Scottish football authorities do in the event of a Newco being formed.

    I can hazard an informed guess at the latter situation because I have personal knowledge of some of the players in that particular situation. I can also hazard a guess at what HMRC will do because I have listened to others on this blog who have afforded me access to their research into, and their personal experiences with HMRC (often in not dissimilar situations to that of RFC).

    Because I have listened carefully to what these people have told me over the last several months as the story unfolded, I have consequently built trust in their judgements, so my guess is that D&D will be looking at an extended HMRC middle finger when the initialism “CVA” is mentioned, and that HMRC will be focused on the moral hazard entailed in acquiescence with what they regard as evasion of tax.

    So I believe the stitch-up, when it comes, will not be from HMRC, but SPL/SFA.

  35. Nowoldandgrumpy says:

    Will anyone ask about the debt to the shredding company of D&D. When were they used and what for.

  36. Smell the glove says:

    Please stop posting leggo’s thoughts. The man is an idiot. Enough please. Stop reading him and stop posting his rubbish here.

  37. Carntyne says:

    bjay says:
    05/04/2012 at 8:35 pm

    I posted before about the valuation of Ibrox and Murray Park.

    The suggestion that they are worth £109 million pounds in any market is in my opinion ludicrous.

    I would dearly love to see sight at their calculations and assumptions. In due course referal of this matter alone to RICS Headquarters in Edinburgh may come to pass.
    ===========================================================================

    I can’t understand why Ibrox and Murray Park are being overvalued at a ridiculous £109mill.

    Surely if this was correct the administrators should put the club into liquidation and would be obliged to sell those two items for that amount for the good of the creditors, since that would be far the best financial deal for the creditors.

    Unless of course those assets are not really worth £109mill.

  38. Ianc says:

    Ive just looked through my wee maws investments made by my dads estate and am distressed to find many of them could be financing this mess.
    How many others I wonder.
    I dare not tell her and divesting now would be wrong financially .
    So the gits keep on coining it.

    Struggling not to say more. Suffice to say vv not happy.

  39. yojimbo56 says:

    The Iceman says:
    05/04/2012 at 10:45 am
     47 1 Rate This
    Well folkie boys we all forgot Matt’s “Fitba’ Referee” did we not. Missed severely is Matt. I was brought up on him, Imlach and The Clancy Brothers. Was never much hope for me turning out a Bear really!!!

    Dingwall is vile as is much of their base. Celtic have vile elements too – unreconstruted Provo Republicans – but they are not our representatives. What is staggering is the aggression, the denial, the treats the poison and the sheer lack of grip of reality they show.

    I began in this process wanting to see a new improved modern chastened Rangers re-emerge down the line as a decent club. As of now I just want them buried!!!

    Quite simply their decent supporters have been silent – and allowed this to happen – none of them have stuck their head above the parapet to condemn SDM and the cheating and fraud that went on up at The Big Hoose. They deserve all that’s hit them and will continue to.

    ######

    None of them Iceman? Sure you didn’t was US buried all along? I don’t know how people like me could have stopped ‘this’ happening, but my head is well above the parapet and there is many like me….I’m sure of it.

    Dingwall might have the Talking Stick in his hand but he don’t represent many of us that are closer to you, politically and culturally, than you think.

    This whole episode is hurting people like me far more than it is infuriating people like you. When I calm down, I would like to give my perspective on the Fecker Murray and the humiliation he has brought on my club…..

  40. AllyjamboTaxpayer says:

    PL

    However biased the BBC might be, for whatever reason, the facts are there for all to see: Rangers owe a huge amount of money to a huge amount of people; they stand accused of tax evasion, but by HMRC not the BBC; their efforts to correct the situation have solely been aimed at saving the club and to hell with everyone else; everyone involved with RFC are denying responsibility for the deplorable state the club’s in etc, etc, etc….

    And yet there are Rangers fans, at all levels of the intelligence spectrum, blaming everyone they can think of. So many people on RTC have been saying for a year now that the MSM have been short changing Rangers fans by covering up, or refusing to believe, and so not reporting, just how serious the situation is. This failure to report this massive story might create a justification for them to blame certain members of the media, but they ignore this fact and choose to blame those who are reporting, however belatedly (and the BBC were reporting it much sooner than the Bears’ loyal hacks, who continue in a state of denial), the reality of the situation. The only people to blame for this mess are all connected to Rangers, no one else.

    I know nothing of those stories talked about in the Leggoland rant you have shared with us, but in typical Rangers fashion, it is all the fault of Catholics! I am so glad I now live in England and so will escape the madness that looks set to hit my homeland.

  41. Private Land says:

    Smell the glove says:

    06/04/2012 at 12:27 am
    ____________________________________________

    STG

    I apologise if it offends – and i can see how it does. That however was not my intention.

    And it only offends of you read it.

  42. twopanda bears says:

    Any update on RFC Charities? – they need to be saved from current nonsense – long long very long history there

    – Any thumbs downers need to make friends to cohabit with a master g spiers soon to be residing in the Aleutian Islands

  43. The Iceman says:

    I have read and considered your response.

    I am exercising schadenfraude and responding in a less than fair manner. and for that I hereby state you are right yojimbo – and I hereby apologise.

    Glad to hear that there are many like you.

    It is far harder for you than any of the rest of us. We can spectate and gloat or get indignant with minimal consequence!

    What I think I was driving at was that there seemed to be no groundswell like the anti- Glazer stuff at Man u – albeit that failed – though they did create an alternative club, or the drive to create new wimbledon, when the owners decamped them to Milton Keynes.

    I would like to have seen thousands of Rangers fans attacking Murray’s legacy and the fire being aimed where it belongs. Instead there seems to be a victim culture and a lashing out at those who are not to blame. I would have liked some erudite, considered fan response to take the club forward – i thought that this would happen in the aftermath of administration and was shocked by the continued rantings and recriminations and lack of awareness of the rangers fan base. (Maybe it was there but not getting heard)

    But i did overstep mark by saying none and I do apologise ( I don’t apologise often either!)

  44. Johnboy says:

    The valuations listed for Murray Park and Ibrox are based on the old method.
    Duff & Duffer have since asked another firm (Reith & Lambert) to supply new valuations.
    They have declined to reveal these new valuations due to “commercial confidentiality”, as they impact directly on bids for the club.
    Moreover, the true nature of the Fixed and Floating Charges on the company have not been revealed.
    If anyone believes Duff & Duffer don’t know what these are (after advising Whyte for 13 months) then they must button up the back.
    There is something VERY significant here that we are not being told about.
    Do Ticketus hold a floating charge on the stadium via Rangers FC Group and Liberty Capital?
    Exactly how much does Whyte claim he is owed?
    What are Duff & Duffer NOT telling us?

  45. Goosy says:

    Johnboy says:

    05/04/2012 at 11:57 pm

    Right, let’s get this straight:
    JANUARY 2011: MCR (now Duff & Phelps) are hired by Liberty Capital (Whyte) to negotiate with Lloyds Bank as part of the Rangers takeover talks.

    ,,,,,,,,
    Sorry John
    you got a major bit wrong
    Its actually worst than that
    MCR were hired by RFC in late 2010 according to the Feb 18 Press conference Their task was to help CW in the run up to the takeover
    They were paid by RFC not by Liberty Capital
    After the takeover MCR/D&P continued to help CW.
    David Grier claimed his role was to act as a conduit between CW and HMRC
    Despite doing this role from May 2011 to Feb 2012 D&P claimed they were unaware that CW had paid no taxes to HMRC during this period

    The verbatim transcript of that press conference is a few pages back

  46. Lucculent Sam says:

    paul martin says: 05/04/2012 at 10:36 pm

    if you were a Hearts fan you’d want to ask them what the difference in approach is all about.

    This has already been discussed and explained here.

    HMRC applied for winding-up orders against the Jambos because they repeatedly failed to pay PAYE and NI when it fell due. This is standard procedure when a company takes the piss on paying its taxes. HMRC’s approach was vindicated because Mad Vlad coughed up sharpish once the winding up orders had been obtained. Put simply, the Jambos twice had the money but chose not to pay up until Hector put a gun to their head.

    With RFC(IA), HMRC has had a much more important objective. They knew that going for a winding up order would put the club into liquidation because it had no hope of paying what was due. HMRC has deliberately kept RFC(IA) on life support until the FTT rules on the Big Tax Case. By putting the club into administration HMRC has prevented any other creditor from getting a winding up order that could have meant liquidation before the FTT ruling.

    HMRC want a legally watertight judgement that EBTs are tax evasion. Since RFC(IA) are the poster boys for this abuse, HMRC want RFC(IA)’s EBT case to provide that judgement. Next, the debt RFC(IA) will then owe guarantees HMRC will be able to block any CVA. This is something else they want to do, particularly in relation to unpaid taxes and CVAs by football clubs. Finally, HMRC will end up with RFC(IA)’s head on a stick once it is liquidated. They will be pleased to wave this in front of all the other scum who have used EBTs to evade tax. What HMRC lose by rejecting a CVA for RFC(IA) will be more than made up by the back tax that will be volunteered by the hundreds of other companies who have used EBTs.

  47. scapa says:

    I am really warming to Stewart Weir!

    Stewart Weir‏@sweirzReply
    Retweet

    The entire ‘we don’t do walking away’ line looks hollow now when evidence shows #Rangers do do walking away – usually without paying

  48. Private Land says:

    The Iceman says:

    06/04/2012 at 12:49 am
    ______________________________________________________________________

    I think I may have posted this before in another thread. Recently, I had a chat with a former (non Celtic-supporting) colleague, who has reported on Scottish football in print and on air since the early 1960s. We talked about the RFC issues over a coffee or three and I mentioned that there seemed to be an absence of the passion shown by Celtic fans in 1992-94.

    He said that in his opinion the Celtic fans were a cohesive and unitary force fundamentally, and that they acted together as a family in the midst of that crisis. He thinks that stems from the heritage that the majority of Celtic fans share.
    On the other hand he said that his experience of Rangers fans was that they did not share a heritage in that same fashion, and that they were a much more disparate, less cohesive group as a result.

    I’m no sociologist, but it makes sense to me. Rangers fans on the blog may have an opinion also, but I have to admit that the lack of reaction, the lack of any need for accountability amongst the Rangers fans has always seemed counter-intuitive to me.

  49. Ragers Against The Machine says:

    Albion Road Car Park
    9.18 The Albion Road Car Park is subject to a finance agreement and covers an area of approximately 2.6 hectares adjacent to Ibrox Stadium. It is anticipated that the Club will gain right, title and interest to the car park in 2023.

    Does this club actually own anything? (Tainted Titles excluded)

  50. paperbhoy says:

    Barcabhoy says:
    05/04/2012 at 10:58 pm

    HMRC have no benefit in voting for a CVA and considerable incentive to vote against as a warning to what will happen to others.
    ——————-

    This is all very well and oft repeated, but many are the cases in football where HMRC are paid pennies, and by the look of the Darlington case, sometimes less than a penny in the £.

    Why am I not comforted by this notion that HMRC will dish out a morality warning? The evidence suggests that for all their hard talking, in the end up they’re pretty much toothless. And unscrupulous businesspeople aren’t noted for sheding tears in the face of the carnage they’ve wreaked when they get away with it.

    As much as the estalishment might conspire to save this financially and morally bankrupt institution – and there’s no reason to rely on the SFA to exact any meaningful punishment either – surely decent-minded football supporters up and down the country aren’t just going to lie down to such an outcome? I know I’ll never be back, but I can’t be the only one.

    That this whole sorry mess could potentially result in a whitewash (no pun intended) is nauseating.

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