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Rangers FC RIP

Posted on June 12, 2012 by

Rangers Football Club, formed in 1872, will formally cease to exist later this week. In a surprise development (in terms of its timing, not its content), HMRC have officially stated that they will reject the club’s proposed Company Voluntary Arrangement at the creditors’ meeting scheduled to take place this coming Thursday, June 14. The news was confirmed when the club’s administrators Duff & Phelps issued a press release stating their intention to go ahead with a plan to sell Rangers FC’s assets to a consortium led by businessman Charles Green for £5.5m.

There is, however, a great deal of debate about whether such  plan can go ahead. A fascinating blog by Scottish lawyer Paul McConville last week observed that HMRC had already put in place its own preferred liquidators should the CVA proposal be rejected, and it’s hard to see how Duff & Phelps can go ahead with the asset sale in the event of a legal challenge from creditors. Since HMRC has rejected the CVA and has its chosen liquidators standing ready, it seems highly likely that it, or some other creditor/s, would mount such a challenge.

There can be little doubt that the assets of Rangers FC – the playing staff and property portfolio, including Ibrox Stadium and Murray Park – ought to be able to realise significantly more than the £5.5m Green is offering. (Since the money Green proposed to use to buy the club with was in the form of a loan to be recouped from the survival and continued trading of the club, it’s also uncertain whether it’s actually on the table in any real sense.)

Even if the players’s contracts are held to be voided by the liquidation of the club (also the subject of debate) and they can move on without any transfer fees, it’s difficult to see how the property alone, even allowing for its partially- listed status, could fail to be worth at least double the supposed sale price, and the liquidators will be duty-bound to maximise the returns for creditors by at least opening the sale process up to competing bids, including those not seeking to use the property for football purposes.

Duff & Phelps and Charles Green have both insisted that despite liquidation Rangers Football Club will survive, under the same name, and continue to play at Ibrox. Such claims, stated by both parties as certainties, seem to lack any credibility. Further intriguing developments, we’re sure, are not far away.

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6 to “Rangers FC RIP”

  1. Bugger (the Panda)
    Ignored
    says:

    Duff and Phillips are now saying that there is a binding contract to sell the assets to a new entity under the control of Green.
     
    Rev Stu says that HMRC will attempt to appoint another liquidator, rather than D & P.
     
    So, how can D & P sell Rangers’ assets and at the price stated, which could be much less than could be achieved and considering that the sales price is in fact a loan and HMRC will get nowt of that?
     
    I can see this staggering through the Court of Session

  2. Rev. Stuart Campbell
    Ignored
    says:

    “Rev Stu says that HMRC will attempt to appoint another liquidator, rather than D & P.”

    Well, not so much that I say it as that someone far better versed in Scots law than I says it, and not so much “will attempt to” as “already has”. Do read Mr McConville’s blog, it’s very informative.

  3. Bugger (the Panda)
    Ignored
    says:

    I have been reading the blog by Mr McConville but my damn browser (Firefox) crashes when I try to follow some of the links within.
     
    Somebody is talking waffle and I suspect the it is D & P; they have form you know.
     
    The BBC is suggesting that HMRC will go for David Murray and the Whyte Night.

    I wonder if that other rumour on an earlier blog of a South African connection could have substance.
     
     
    Popcorn and a (neverending) sixpack called for.

  4. Jim
    Ignored
    says:

    Sorry. Get facts right. The business is liquidated. Not the club or the history of the club. So take RIP and shove it as far up your ………..

  5. Rev. Stuart Campbell
    Ignored
    says:

    The business is the club. The clue is in the name of the business: Rangers Football Club PLC. It’s not exactly cryptic.

    It’s all pretty academic, because one way or another there’s absolutely no chance now that any kind of Rangers is coming out of this alive. If the Appellate Tribunal doesn’t do the job and the SPL members bottle it, the dual-contracts case will fill the coffin full of nails and dump it out at sea. And even if it somehow floats back to shore staggers on like a zombie Rasputin after that, Green will sell out to Tesco, because the last thing he ever wanted was to be lumbered with a loss-making football club. It’s worth far more to him broken up for parts than anyone will ever pay for it as a going concern.

    Jim McColl and Douglas Park are worth close to a billion quid between them – £20m is pocket change. So why haven’t they just paid up if they love Rangers so much? Answer: because since the dual-contracts announcement they know it’s doomed beyond salvation. Start making alternative plans for your Saturdays.

  6. Bandage
    Ignored
    says:

    Rangers can’t have it both ways. They want to get rid of the debt but keep thehistory. The debt was used to fraudulently buy every title since the late 80s. 



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