Comment deleted by Site Moderator
Does it though Dos?
What if the guy you owe £100m to has an annual income of about £50bn and you have annoyed him.
Wont he just make you suffer? The money means less than the statement.
Only way out of this is NewCo, well unless political strings are getting pulled behind the scenes.
Pay yir debts bawbags. You no scruples?
Comment deleted by Site Moderator
The best way to get it all sorted in your head is to look at this
http://www.rangers.co.uk/staticFiles/fe/a8/0,,5~174334,00.pdf
and work out where you think they'd get the money from to come out of administration.
If the club lost £2m in a month and a bit while the season is ongoing, how do you think they'll get on in the closed season?
D&F want to sell fast....But, a CVA can only be achieved if you break even at the very worst.
I know you might well think I'm another gloating Celtic fan, but I honestly can't see anything other than liquidation for Rangers.
Bhoyzilla,
I think the only way out is to go down the NewCo route.
Transfer the club to saftey then liquidate the old company.
Whatever the highest bid was for the NewCo gets distributed out between the creditors.
Cool, now someone has just got to give me Whyties phone number so I can inform him that the history is safe.
Has anyone seen TCD today by the way?
Oh, you're talking of a hybrid liquidation.....Does such a thing exist?
I don't think it does.
Nah, it doesnt really.
There is just standard liquidation really.
Im talking about the Leeds route.
Or the old switch-aroo.
Leeds agreed a CVA though. I don't see that as being achievable at Rangers.
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.
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.
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
http://www.kpmg.co.uk/news/detail.cfm?pr=2873
That isnt saying the same as your original text.
Very different story.
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.
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.
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.
http://www.legalweek.com/legal-week/analysis/1174029/media-sport-entertainment-leeds-calling
^ Backs up what im saying.
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The actual debt figure irrelevant?
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posted on 6/4/12
Comment deleted by Site Moderator
posted on 6/4/12
Does it though Dos?
What if the guy you owe £100m to has an annual income of about £50bn and you have annoyed him.
Wont he just make you suffer? The money means less than the statement.
Only way out of this is NewCo, well unless political strings are getting pulled behind the scenes.
posted on 6/4/12
Pay yir debts bawbags. You no scruples?
posted on 6/4/12
Comment deleted by Site Moderator
posted on 6/4/12
The best way to get it all sorted in your head is to look at this
http://www.rangers.co.uk/staticFiles/fe/a8/0,,5~174334,00.pdf
and work out where you think they'd get the money from to come out of administration.
If the club lost £2m in a month and a bit while the season is ongoing, how do you think they'll get on in the closed season?
D&F want to sell fast....But, a CVA can only be achieved if you break even at the very worst.
I know you might well think I'm another gloating Celtic fan, but I honestly can't see anything other than liquidation for Rangers.
posted on 6/4/12
Bhoyzilla,
I think the only way out is to go down the NewCo route.
Transfer the club to saftey then liquidate the old company.
Whatever the highest bid was for the NewCo gets distributed out between the creditors.
posted on 6/4/12
I'd agree with that.
posted on 6/4/12
Cool, now someone has just got to give me Whyties phone number so I can inform him that the history is safe.
Has anyone seen TCD today by the way?
posted on 6/4/12
Oh, you're talking of a hybrid liquidation.....Does such a thing exist?
I don't think it does.
posted on 6/4/12
Nah, it doesnt really.
There is just standard liquidation really.
Im talking about the Leeds route.
Or the old switch-aroo.
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.
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