I was hoping someone may be able to clarify something for me. I am under the impression the debt figure is irrelevant now - whether it's 30m or 1bn, surely it matter not one bit.
In my opinion the only figures that matters is what is offered to creditors as a CVA and what the creditors could realistically expect to get back from liquidation. Whatever the highest value TBKs or the Singapore group are able to offer will not change as a result of yesterday's revelations. As I see it, the creditors must now decide if the £10m or £20m that a new owner would offer would be worth more to them than liquidating Rangers and attempting to sell the Assets.
I keep hearing everyone saying liquidation is inevitable, but what does that really get the creditors? The players contracts are null and void and the only real Assets are stadium and training ground. Neither would seem value for money during a time of recession. Let's face it, there are no major construction projects in Glasgow at present, and what use is a stadium without fans to fill it? The running costs alone would scare many buyers off. And any money they do make would need to be further distributed to Ticketus.
I may be miles of the mark, but based on the above can anyone confirm if this is true? Whether its 1p in the £ or 50p would not seem to have any bearing.
The actual debt figure irrelevant?
posted on 6/4/12
Leeds agreed a CVA though. I don't see that as being achievable at Rangers.
posted on 6/4/12
Not really Bhoyzilla. They exited admin without a CVA.
The process was as follow:
Entered admin, and docked 10 points.
2. Leeds United (club) sold from original Leeds United (Company)
3. CVA not agreed, and so could not settle requirement of FA rules.
4. Leeds United (club) exit administration in the form of a NewCo.
5. Docked 15 points for exiting admin without CVA but granted their 'Golden Share'
6. HMRC drop objection to CVA due to the fact Leeds have won and exited admin without the need for HMRC to sign off on it.
7. Original Company founded in 1920 is liquidated.
8. Leeds United (club) live on with a retained history in the NewCo.
posted on 6/4/12
They withstood the challenge from HMRC, paid creditors and concluded the transfer of assets, including League share, to Leeds United FC Ltd, according to the terms of the CVA before winding up the old company. No loose ends were left.
This is not a Liquidator’s Charter. Provisions in football only exist to transfer a League share from one company to another if creditors are satisfied, either by being paid in full or, as with Leeds United, with 75% agreeing to accept a diminished amount.
posted on 6/4/12
Whats the source of that? Seen it a few times now.
This source is a cracker on the subject though. Gives a different perspective.
http://www.lawteacher.net/company-law/essays/football-club-administration.php
posted on 6/4/12
http://www.kpmg.co.uk/news/detail.cfm?pr=2873
posted on 6/4/12
That isnt saying the same as your original text.
Very different story.
posted on 6/4/12
The first bit you quoted :
"They withstood the challenge from HMRC, paid creditors and concluded the transfer of assets, including League share, to Leeds United FC Ltd, according to the terms of the CVA before winding up the old company. No loose ends were left.
This is not a Liquidator’s Charter. Provisions in football only exist to transfer a League share from one company to another if creditors are satisfied, either by being paid in full or, as with Leeds United, with 75% agreeing to accept a diminished amount."
Is wrong.
League share was transfered prior to the CVA being agreed.
Its easier in scotland due to the fact we dont have the same rules on insolvancy. We dont need to settle our debts. Englands method is better to be fair.
posted on 6/4/12
Oh, the original is from CQN. But you'll see that the link provided is from the guys responsible for the Leeds restructuring.
In their own words.....the subject of he sale of the club is subject to approval by it's creditors, via a CVA.
posted on 6/4/12
Only because the sale depended on the new club being granted the 'golden share'.
For that to happen the football league had to either see that the creditors had agreed a cva, or use their discression to overrule.
They overruled, concluding the sale prior to the CVA being granted.
posted on 6/4/12
http://www.legalweek.com/legal-week/analysis/1174029/media-sport-entertainment-leeds-calling
^ Backs up what im saying.