Rangers Receivership

[paoktzi]

Rangers FC signals administration move
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Q&A: Rangers and administration
Rangers Football Club has confirmed it has filed legal papers at the Court of Session to appoint administrators.

The club said it would continue with "business as usual" until it decided whether to take that step.

Rangers now has 10 days to make a decision. In the meantime, it said there would be "no impact on season ticket holders and shareholders".

The move comes while Rangers awaits a tax tribunal decision over a disputed bill, plus penalties, totalling £49m.

The club said in a statement, however, that if the tribunal decided in favour of HM Revenue and Customs (HMRC), it "could result in liabilities and penalties substantially more than the £50m reported which the club would be unable to pay".

He was later reported as saying this could reach up to £75m.

Craig Whyte, who bought the club from former owner Sir David Murray last year, said recently that administration was an option if the club lost the tax case.

'Protect the club'
The case relates to the use of employment benefit trusts (EBTs) to pay players and other staff.

It is thought that HMRC believe the club misused the scheme and avoided paying significant sums in tax.


Craig Whyte bought the club last year from Sir David Murray
In a statement released on Monday, Mr Whyte said the moves towards administration had been made to protect the club.

He said: "Since I took over the majority shareholding of the club in May last year, it was clear to me the club was facing massive financial challenges both in terms of its ongoing financial structure and performance and the potential consequences of the HMRC first tier tax tribunal.

"I have taken the decision that the most practical way to safeguard the long-term future of the club is to go through a formal restructuring process. It may still be possible to avert this but that is not the most likely way forward.

"What is of paramount importance is the long-term security, survival and prosperity of this great football club."

Mr Whyte said it was "in the best interests of Rangers" that his ongoing restructuring of the club was "completed before the end of this season".

He said this had "meant turbulent times" as the club sought to "stand on its own feet, earning more than it spends".

"From my early days as chairman I saw that administration was a very real option to enable the club to address these challenges and make a fresh start," he said.

'Great institution'
"Frankly, the case for administration in pure financial terms was compelling but I was acutely aware that such a great institution as Rangers could not be viewed exclusively in financial and business terms.

"The fact is that Rangers' ongoing financial position and the HMRC first tier tribunal are inextricably linked."

The Rangers chairman stated again that the club was running a £10m annual deficit and it was in the best interests of the club to cut costs significantly.

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It has been decided to seek the protection of a moratorium from HMRC action whilst a Company Voluntary Arrangement proposal is made to creditors.”

Craig Whyte
Rangers chairman
He continued: "There is no realistic or practical alternative to our approach because HMRC has made it plain to the club that should we be successful in the forthcoming tax tribunal decision they will appeal the decision.

"This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC which will be due whatever the overall result of the tax tribunal.

"In blunt terms, if we waited until the outcome of the tax tribunal, the risk of Rangers being faced with an unacceptable financial burden and years of uncertainty is too great."

Mr Whyte said the tax case related to "a claim by HMRC for unpaid taxes over a period of several years dating back to 2001" which Rangers would be unable to pay if the tribunal went against the club.

He said Rangers' immediate future now lay in the hands of HMRC.

The chairman said: "If HMRC were to agree, even at this late stage, a manageable agreement with the club, then a formal insolvency procedure could yet be averted. It goes without saying that would be our preferred outcome.


The BBC's James Cook: "These are extremely worrying times for the club"
"If not, further investment in the club would be impossible as the threat of winding up by HMRC cannot be removed.

"The Rangers FC Group, the majority shareholder in the club, is prepared to provide further funding for the club on the basis the funding is ring-fenced from the legacy HMRC issue."

Mr Whyte said Rangers had engaged a specialist restructuring practice, Duff and Phelps, to assist in finding a solution to the present position.

He added: "As a result of that advice, it has been decided to seek the protection of a moratorium from HMRC action whilst a Company Voluntary Arrangement (CVA) proposal is made to creditors.

"This, if approved by creditors within a month, would minimise any points deduction and allow the club to participate in European football.

"In short, if the club proceeds into administration then it will have to emerge from that process, with the agreement of creditors, within a month or so in order to be able to play in Europe next season."

'Financially fitter'
Mr Whyte said administration would "regrettably lead to a cost-cutting programme and the potential loss of jobs across the business".

He said former directors may "contend that the steps we are announcing today are unnecessary".

"All I would say to these people is that if they want to step up to the plate and invest money in Rangers to avoid a restructuring of the business, then I would be most willing to talk to them," he said.

"In the past unfortunately, there were people who not only failed to prevent Rangers being engulfed by our current problems but chose not to invest their money to help put it right."


Rangers faces a 10-point penalty if it formally enters administration
Mr Whyte said Rangers could "emerge as a stronger and financially fitter organisation" from this process.

He statement concluded: "As chairman of the club, every action I take will be in the interests of Rangers and there are many people working at the club who are dedicated to making Rangers a success.

"I would like to thank supporters for their great commitment to Rangers. This great football club can recover from the situation in which it now finds itself and be the force in football that the fans deserve."

Mr Whyte is understood to be the club's main secured creditor via a floating charge over its assets.

This would allow him to pursue other avenues such as receivership or pre-pack administration to satisfy the debts which the club owes him if a CVA cannot be secured.

These would involve transferring Rangers assets out to another company or companies to satisfy outstanding debts to the floating charge holder and leaving the club behind with the debt.

In such scenarios, it would be likely that Rangers FC - formed in 1873 - would be formally wound up.

[Cockman]

Is that from 442 Bro? there not actually in administration yet.. here's an article from their official site


What has happened?

The directors of Rangers Football Club plc ('the Company') have filed a Notice of Intention to appoint an Administrator with the Court of Session



What does this mean?


This does not mean that the Company is in Administration.

The purpose of the Notice of Intention is to provide the Company with a "breathing space" from its creditors as it puts in place an interim statutory moratorium which prevents legal action by creditors. The statutory moratorium is effective for ten business days.

This interim period will be used to continue negotiations with creditors, in order to reorganise the Company's affairs.

Who is in charge?

The board of directors continue to manage the Company's affairs, as before.

Creditors and suppliers - What does this mean for me?

The Company continues to trade as usual and queries should be directed to your usual contact. The directors of the Company are fully aware of their ongoing responsibilities in this difficult period.

Season ticket holders - What does this mean for me?

As noted above, the Company continues to trade and matches continue to be staged as normal. The Notice of Intention has no impact on team affairs.

If you pay for your season ticket by standing order/direct debit, again it is business as usual. Your ticket continues to be valid as long as payments are maintained and there is no change to existing arrangement.

Shareholders - What does this mean for me?

Trading in the Company's shares in the PLUS market was recently suspended, pending the release of the Company's audited accounts.

Shareholdings in the Company continue to enjoy the same rights as before, save for the restrictions on trading. Shareholders will be given further notices as appropriate.

Corporate hospitality

All corporate hospitality arrangements are secure and remain unchanged.

What if the Company requests further supplier/credit?

The Company continues to trade and appreciates the support of suppliers and stakeholders in this interim period. Please speak to your usual Club contact if you have any further queries.

What will happen if the Club is placed in to Administration?

Should the Company be placed into Administration, the appointed Administrators will write to all creditors of the Company to notify them of their appointment, to provide the relevant forms for creditors to complete and provide contact details for further queries. Further reports to creditors will be issued to set out the Administrators' proposals for the Administration.

What is the difference between serving a Notice of Intent and actually going into administration?

A Notice of Intent is not administration. Every effort will be made right up until the last moment to avoid going into administration. Discussions are ongoing with HMRC to explore any remaining possibility to keep the Club from entering into an insolvency process.

Why is the Club seeking to put Rangers into administration now when the result of the tax tribunal is not yet known?

Even if Rangers wins the tribunal, HMRC has made it plain that they will "appeal, appeal and appeal" the decision. The practical effect of this will be to plunge the club into years of ongoing uncertainty. It would also mean the Club having to pay immediately a range of liabilities to HMRC. If we wait until the outcome of the tax tribunal, the risk to Rangers of being weighed down with an unacceptable financial burden and years of uncertainty is just too great. It would be counter-productive and in the longer term would jeopardise the club's future both on and off the field.

But what if HMRC wins the case, couldn't Rangers appeal?

Yes, but again the impact of possibly years of further uncertainty awaiting an outcome that could ultimately go against Rangers is too much to bear. Also the Club would have to pay the liability immediately and it would only be returned if the appeal was successful. The liability could be substantially more than the £50million already reported widely. The Club would simply not be able to function properly with this cloud of uncertainty hanging over it. Further investment in the Club would be unlikely because of the threat of HMRC moving for a winding up order. All of that together would seriously endanger the business on and off the field and in the final analysis safeguarding the future of Rangers is paramount.

Is there any way in which this course of action can yet be avoided?

Yes, it is possible. If HMRC were to strike a manageable and mutually acceptable agreement with the Club, even at this late stage, that would safeguard the future well-being of Rangers, without any insolvency process.

If the Club does go into administration, what will actually happen? Who will run the Club?

If it is decided to go ahead with the application to appoint administrators, an administrator will be appointed who is likely to instigate a review and cost-cutting programme across all departments of the Club. The Club has engaged Duff and Phelps, a specialist restructuring practice, to assist in finding a solution to the present position. In the meantime, and in accordance with advice, it has been decided to seek the protection of a moratorium from HMRC action while a Company Voluntary Arrangement (CVA) proposal is made to creditors. This, if approved by creditors within a month, would minimise any points deduction and allow the Club to participate in European football.

But will the team still turn out for home and away games?

Yes. Rangers is here to stay whatever happens. The team will continue to compete as normal and it is to be hoped that the loyal Rangers fans will continue to give their full support to Ally McCoist and his players at this difficult time for them and the Club.

Is it likely that the administrator will want to shed players?

The administrator will have a duty to look at every aspect of the business, including the playing squad. It would be for him to decide, in consultation with current management, where savings can and need to be made.

So what will the points penalty be for going into administration?

There is likely to be an immediate 10-point deduction if the administration goes ahead.

How long is the Club likely to be in administration?

It is hoped that the period of administration would last no longer than a few weeks.

If the Club goes into administration, will the tax tribunal case still proceed? What, if anything, will HMRC get if the tribunal rules there is tax to pay? And what about the Club's other creditors?

Yes the case will still proceed. Rangers are just one of a number of defendants to the case. If the tribunal rules in favour of HMRC then any claim they may have against the club will be unsecured and will rank alongside other unsecured creditors.

Who and how do we contact?

Media/Press queries should be directed to the Club press office.

Ticket and general supporter queries should be directed to the Customer Services Department.

Supplier and creditor queries should be directed to the Club accounts department.

[mini]

Thanks for the update Alex. Keep us posted.

[Cockman]

FOLLOWING today's court proceedings in Edinburgh, Rangers Chairman Craig Whyte issued the following statement.

"As a consequence of court proceedings instigated this morning by HMRC, the board of Directors has regrettably taken the decision to appoint administrators with immediate effect.

"The Club did not want nor anticipate having to take this course of action today but had no option. We had hoped that continued dialogue with HMRC would mean that a decision on administration would not have to be taken for 10 days while all other avenues were explored.





"Due to its cost structure, the Club has been loss making for many months.This situation has resulted in increasing liabilities and the Club has been in discussion with HMRC regarding these liabilities.

"These liabilities combined with the threat of the outcome of the first tier tax tribunal left the Club no option but to formally restructure its financial affairs.

"It goes without saying that administrators will work towards a solution that will be in the interests of the Club and its creditors. At no stage has a solution been sought where my personal interests were put before the Club's. The Club and our supporters come first.

"It remains our firm belief that the Club's future can be secured and we hope this period of administration will be as short as possible.

"As Chairman and a Rangers fan, it is very painful to see the Club being deducted 10 league points but I would urge all Rangers supporters to rally round Ally McCoist and the team in these difficult times."

David Whitehouse and Paul Clark, of Duff and Phelps, will conduct the administration.

Paul Clark said: "As administrators we have a statutory duty to act in the best interests of all creditors and we will fulfil that function diligently.

"We fully recognise the great history of this club and what it means to people throughout the world.

"Whilst today is a sad day for Rangers, it also addresses the terrible uncertainty that has been hanging over the Club. The administration period, while difficult for all involved, will give stability to the Club in order to move forward.

"I can assure all Rangers supporters that all aspects of the administration will be carried out with the interests of the Club firmly in mind. As a first step, the administration team will ensure that Saturday's match at Ibrox will proceed as planned and all other routine Club business will continue."

[mini]

down shit creek

[Bennis]

[Bennis]

Great article:

What started out with a football story became a drama. What was a drama became a shambles. What was a shambles quickly turned into a comedy and what was a comedy has swiftly turned into a farce. This is an administration like no other; 15 days and counting without a player being sacked. Indeed, they tried to sign one. 15 days and counting, and only two members of staff paid off, and one of them was Gordon Smith, so that was hardly a shock. 15 days in which the blue half of Glasgow has woken up to what the green half has known for months; Craig Whyte is a man of no credibility or material wealth. Indeed, his entire business history is littered with the wreckage of companies in which he has been involved.
15 days in which people have cast around for someone to blame, above the man who’s getting the flack, Mr Craig Whyte himself.
It’s time some facts were faced by the Rangers fans.
This is not simply the fault of Whyte, or Murray or the banks or the managers who recklessly spent crazy money the club did not have. All of these people are culpable, all of these people played a role in what has gone on. Every one of them is guilty as charged, every one of them has had a hand in creating the current problems.
The media wants to slip out of responsibility, but the very notion they can is hilarious, because they are a big part of how we got to the present crisis. Had Celtic been in trouble and Whyte was the only man on the horizon, the media would not have been afraid to do their own “due diligence” on him, and his reputation would have been in the gutter long before he ever got his hands on the keys. And the Celtic fans, themselves, would have blocked his way and collapsed the deal if the media had not been up to the job. No-one should pay any heed to the media’s claims that they broke this story; we know full well that it was the Celtic online community who did that.
The SFA and the SPL would like to escape the net of blame, but they are probably even less credible than the press when they try. There are serious questions about their conduct here, with everything from players contracts to European licenses still under serious, serious question, not to mention that the man at the very top of the house, Campbell Ogilvie, has been involved in not one team which operated EBT’s but two, and is likely to find himself the subject of some heavy enquiries when this thing ends. And there is no end in sight.
Rangers FC’s survival is going to be decided not on a football field but in a courtroom. It is difficult, if not impossible, to see how the SFA and the SPL can wait around until these matters are resolved. The process could take years, and in the meantime, as Paul Brennan has hinted at in his magnificent article from earlier, more than one Rangers could emerge … and then the question becomes which one is even granted a license to play at all? In the meantime, one club faces relegation in the SPL and they have a case for that not happening now.
Believe it or not, the money is not the only hurdle facing Rangers right now. A bigger problem is going to the clock. Time is getting away from them. The March 31 deadline to gain a European license is actually a much more significant date than has been understood; it is also the deadline for gaining a license to play in Scotland … and no-one in the press has even hinted at that, let alone brought it to the attention of the world.
What are the grounds under which a side can be denied that license?
Let’s take the first finance & admin criteria, which relates to the stadium.
“The club shall have the sole use of the ground or “shared” use and shall be in a position to establish security of tenure for the ground and to play matches as and when required. To establish security of tenure the club shall own or have a lease in place for the ground. The lease shall run for at least the period of the current season as well as the following season.”
Can Rangers guarantee that? Will the ground be owned by the club, or by someone else? Can they assure they can meet fixture requirements by having a fixed place to play their home games? Without that they can’t get a license, and it’s not clear who will own Ibrox this time next year, whether it’s Whyte, a consortium or even the courts.
Let’s take the audited accounts requirements.
“Each club shall be required to provide a copy of its audited financial statements prepared according to the Companies Act 1985 and relevant accounting standards (UK Generally Accepted Accounting Practice). The statements shall refer to the year ended 2011. Clubs will provide this information as follows – SPL clubs – by 31 March 2012, All other clubs – by 30 April 2012. The auditor’s report in respect of the annual financial statements shall not include an emphasis of matter or a qualified opinion/conclusion in respect of going concern.”
We know that Rangers will not have accounts submitted in time to meet the European deadline, as the administrators have admitted this. Furthermore, we know that even if they manage to get their accounts finalised, there will have to be a “going concern” opinion contained in them, because there are significant doubts that Rangers will survive long enough to fulfil next season’s fixtures. This clause, on its own, is enough to deny them a license.
The ability of Rangers administrators to guarantee that the club will be in a position to turn up for even as much as one game next season is already in serious doubt. The licensing guidelines have to be followed to the letter, and they are overseen by UEFA and FIFA.
If the SFA and the SPL are to be seen to be doing their jobs, they have to acknowledge the very real prospect that no version of Rangers might exist by the time next season starts.
There is one other party to blame for the shambles the club finds itself in, and so far I have yet to hear anyone in the media or elsewhere allude to this fact, far less spell it out. I will not do so, and tell you who is most to blame for the mess.
Rangers’ fans are to blame.
There are two reasons why they are to blame, and both are found in the DNA of the club, it’s supporters and the mind-set which has grown around them. First is the notion that there will always be someone else to pay the bills, someone else to pick up the tab, always someone else to blame when it all goes wrong. Rangers were in the hands of an understanding and professional bank, in Lloyds, who’s conduct only stopped the club carrying on a suicidal course of action. Rangers fans, angered at what they saw as unfair restrictions – restrictions from spending money they did not have, in other words – protested, threatened and finally forced the bank to walk away from the table. That left them easy prey for a man like Whyte, and made the deal attractive to Murray, who himself has experience in dealing with the notorious ingratitude of Rangers’ fans.
Rangers fans have had 30 years of success built on someone else’s money. Even today, they still believe someone, somewhere, should step in and save them from the appalling consequences of years of mis-spending and recklessness. Yet it is that very attitude that drove boards at Rangers to spend sums of money they could not afford. The unrealistic expectations of a support reared to believe the spending would never end have forced the club to the brink of death. The Rangers fans have pushed their own institution to the edge of the abyss, first by barracking Murray to spend more than he could afford and then by pushing away the very people who were in the best position to help them through the crisis – Lloyds Banking Group, who despite the madness written elsewhere never wanted Rangers to die and would have helped them survive.
The second reason Rangers fans are to blame is even more stark, and difficult to face. The very nature of the support, the very intolerance at their heart, the very exclusiveness they seek to put out there, has made them wholly un-attractive to any investor who does not already have Rangers in his or her blood, and no events in the club’s history have been as damaging to that aspect of the business than Manchester and the European fines. Rangers Football Club is too associated with the songs of hate, with the images of rioting fans, with the detritus of bigotry and the stench of sectarianism. They are known, rightly, as Scotland’s Shame, and no corporate investor could possibly want a part of something so tainted.
Every time Rangers fans sang “Why Don’t You Go Home” or “Big Jock Knew” they were wrapping the noose ever tighter round their own necks. Every minority who was abused, every Catholic who was spat on, every foreigner who got it in the neck, every ground where they spewed forth hate, every TV image of the “Red Hand Salute” increased the revulsion felt by every right thinking person who might once have been of a mind to help. If Rangers really were a positive influence on society, if their fans really were ordinary football supporters, if their survival really was critical to the Scottish game, someone somewhere would be willing to step up and save them … but no-one who does not have those same stains on their soul will even care.
The hardship Rangers fans are about to face, the difficult times, the pain, the tears, the sight of a triumphant Celtic, the only surviving superpower in the Scottish game, celebrating a league win at their own home ground … all of it, they brought upon themselves.
I make no apology for the harshness of the tone of this post. The “good “ Rangers fans who have to watch this must be aware that they too are part of the problem, for never challenging the behaviour of the people who dragged their club into the gutter. Those people are likely to emerge from this with one idea of where the club should go, and the “good “ supporters with another. There is a chance that two distinct versions of Rangers will emerge from this, with a bloody, damaging fight for the soul of the football club at stake for the winners. God help the NewCo if the wrong people win that battle, and “No Surrender” Johnston is one of them.
This crisis is vast, and complex and poses enormous dilemmas for many, many people. But it is not the making of one man, or one group of people. This mess was a collaboration on an epic scale. It took ignorance, arrogance, ego, envy and hate to get to the point where Rangers is poised on the brink of death, and the solutions being mooted, everything from dumping debt and leaving creditors in the lurch to being saved by a state they think owes them something, are all grounded in the same awful mentality that got them here. No lessons have been learned.
For the club to be saved – for the club to be worth saving – this is what has to change.
I see no sign of that happening.

[anothermp]

haha poor rangers