Mr Green and his consortium are brilliant businessmen.
Their CVA plan consists of them lending Rangers Football Club PLC £8.5 million repayable with interest by 2020. The purchase price they are paying is £1 for sale of Rangers FC Group Ltd’s shares.
In return for this loan, which will of course be repaid, unless the rescued Rangers go into administration again, they will get 85% ownership of all of Rangers assets, including Ibrox, Murray Park, all the players and the goodwill and intellectual property.
This result is better for creditors than a sale to a newco, because if that has to happen Mr Green will pay a price of £5.5 million to buy all the assets of the club, including the money due to Rangers for player sales.
In terms of the deal, if Rangers are excluded from the Scottish Cup, or “relegated” to the SFL, Mr Green can then go to the newco option. He is only committed to lending the sum of £8.5 million if Rangers stay in the SPL.
In the event of liquidation there would be nothing for creditors. The only things of value, Murray Park and Ibrox, have been valued in the proposal at £4.59 million. These same assets are in the previous accounts valued at over £100 million.
According to the proposal the administrators think they will get something back from their two cases in the High Court in London involving Collyer Bristow, but that won’t be known for some time, and indeed for years if appealed.
They have demanded £234,000 back from Mr Betts who was paid this from money held by Collyer Bristow. D&P say it was given away by Rangers, and should be repaid.
They also want back £250,000 from Regenesis Holdings, which may well be the “Banstead Athletic” money involving, allegedly, the Earley brothers.
The administrators “understand” that Group (ie Mr Whyte) have confirmed that they are not owed any money under the Floating Charge.
Duff and Phelps are estimating their fees as administrators at £3 million, to which will be added their fees as nominees and also their fees as supervisors of the CVA.
If this goes through, Mr Green has acquired Rangers, lock, stock and barrel and debt free for £1. In fact, as he is being paid interest on the funds leant, he will have profited merely from the acquisition!
The creditors will get a few pennies in the pound, if that.
Mr Whyte, on the face of it, will have got nothing, and he or his companies are being sued by the administrators and about to be sued by Ticketus.
There is a lot more to be said, but Mr Green wins the award for complete bare-faced cheek if he can make this work.
Quite how creditors, like HMRC and Ticketus view this is rather different.
And maybe I missed it, but I did not see any mention of the outcome of the creditors’ vote of 20th April?
More to come later.
Posted by Paul McConville