Not a Live Blog of the Oldco #Rangers Liquidation Hearing

Some additional thoughts arising from the reports so far from this morning’s case at the Court of Session before Lord Hodge.

As long as no one wonders about the sound of the laptop coming from the cupboard in the courtroom, I hope to keep the updates going this afternoon. I would ask any of the counsel appearing in the case to ensure they speak up, as the cupboard door makes it difficult sometimes to hear.

Counsel for Duff + Phelps told the court that there were £1.7 million of cash and “other assets” to be handed over by the administrators to the liquidators.

Bearing in mind that Sevco paid £5.5 million for all of the assets, how is the balance so reduced?

One reason – Duff & Phelps fees are in excess of £1 million and the costs incurred by them for various matters, but especially legal expenses regarding the English court actions against Collyer Bristow are over £1 million.

And of course, should the there liquidators not recover any more money, they will be paid out of the £1.7 million. The creditors will do well to see a penny, it appears.

However the costs sought by Duff & Phelps are being challenged in this hearing, and they are required to justify their position regarding them to the court.

What “other assets” are there?

This would seem to comprise the various claims ongoing, such as the cases against Collyer Bristow, Prichard Stockbrokers re the Arsenal Shares and potentially Mr Betts, although the last one seems to have dropped off D&P’s radar, at least from the reports they have produced. In addition, D&P were looking at one stage at pursuing return of the £250,000 paid, supposedly, to Banstead Athletic, the English non-league team with whom Aidan Earley is alleged to be connected, Mr Earley being a long time associate of Mr Whyte’s.

Other than that, it is hard to see what other assets there might be, as Sevco bought “the whole assets” of Rangers.

Collyer Bristow are objecting to the end of administration. I wondered what locus they had to argue this but, on checking the creditors list in the April proposal by D+P, Collyer Bristow is listed as a creditor to the sum of just over £40,000. As a creditor it can participate in the court proceedings regarding the administration process. However, as counsel for Collyer Bristow has not yet addressed the court, the precise terms of their objection are not clear.

It was indicated that, whilst Lord Hodge wanted to see the transcript of the BBC tape of Mr Whyte’s conversation with Mr Grier, this was not “relevant” to the issue before the court today.

This could well be recognition that, as the assets have been sold, there is no reason for the liquidators not to be in place now, but that would not preclude action against Duff & Phelps should the courts or regulatory authorities determine that rules have been broken.

It strikes me that lengthy hearings of evidence might be needed to determine if D&P have erred or not, and it would be prejudicial to the creditors to tie the issue up together.

I suspect that Duff & Phelps, even if administration ends today, will not have seen the last of Lord Hodge’s courtroom!

Posted by Paul McConville (desperate to sneak out of the cupboard to stretch his legs)

 

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21 Comments

Filed under Administration, Courts, Insolvency Act 1986, Rangers

21 responses to “Not a Live Blog of the Oldco #Rangers Liquidation Hearing

  1. ecojon

    @ Paul

    For some reason the thought of you in the cupboard has just sent a memory flitting across my brain of the ‘vote’ hiding in the fireplace of the Glesga Cooncil Chambers 🙂

  2. mcfc

    @Paul

    Great work – the best commentary available by far.

    Can only assume you are not sharing your cupboard with Jabba – or maybe he’s confused why he was sent there and is playing Fruit Ninja to pass the time.

  3. JohnBhoy

    Paul, the heavy breathing to your left is counsel for Duff & Phelps.

  4. Budweiser

    @Paul

    Live commentary from the courtroom—priceless!

  5. Could the “other assets” also be transfer money. eg, the monies paid by the English FA directly to D&P; the monies Charles Green claims are his?

  6. mcfc

    Rangers white noise machine turned up to 11 – McCulloch signs new deal – move along nothing to see hear.

  7. Keep it coming please Paul and thanks, duff and duffer costs will no doubt go to court appointed cost accountants as we expected that was the reason they delayed for so long in having them done at “their” expense. So more £ back in the pot as these costs will not be allowed and under normal circumstances when court cost accountants are involved the costs are reduced by between 20-30% in my experience.

    if conflict is proved then i can see the guys digging deep into their pockets personally as NY office will not accept the loss of income along with reputation.

    Notice NO lawsuits flying around and the tempering of language coming from chucky bhoy.

    Lots of laughs coming soon MWAH HAHAHA

  8. ecojon

    Nice to see from NEWSNOW that MSN has its priorities sorted out.

    Lee McCulloch signs new two-year deal at Ibrox The Scotsman 14:33

    In the last 15 minutes
    Barman at T in the Park dismissed after being caught with cocaine STV 14:29

    In the last hour
    Rangers extend McCulloch deal Sky Sports 14:11
    McCulloch signs new Rangers deal Sporting Life 14:02
    In-form Lee McCulloch to stay with Rangers until his 37th birthday STV 13:58
    Rangers captain Jig gets new contract Vital Football – Glasgow Rangers 13:51
    Templeton close to comeback Vital Football – Glasgow Rangers 13:51

    In the last 2 hours
    Lee McCulloch inks new Rangers deal Central FM 13:39
    Skipper Pens New Deal Glasgow Rangers – Official Site 13:35

    • Maggie

      @ecojon
      I’m a bit behind today,just reading the post and watching STV to hear that Lord Hodge has ordered the winding up of the “company that RAN Rangers” carefully chosen words to perpetrate the myth that Rangers the club continue while only the company running them changes.Argh!!!!!!
      I blame Bill Miller and his ridiculous 2 tier proposal.
      Now have just seen Sally’s big baw face on screen,thankfully I muted sound while I typed,feel a rage blackout coming on.

  9. ecojon

    http://news.stv.tv/scotland/197719-barman-at-t-in-the-park-dismissed-after-being-caught-with-cocaine/

    Och well one pledger that will need to cancel his Rangers share-owning dreams 🙂

  10. Marching on Together

    Glad to see that D&P’s fees are being challenged. I posted a few weeks ago the comparable amounts in fees for a similar administration, that of Leeds United, and the total fees there, were a around a quarter of what D&P seem to be charging.

  11. Thanks for the commentary, Paul.

    In some of the update tweets earlier this morning, I noticed that Lord Hodge was dissatisfied with some of the papers which he had ordered Duff and Phelps to produce. Being a simple sort of fellow myself, I am amazed that court appointed officers can get away with failing to follow his Lordship’s instructions. An ordinary bloke would think that such sloppy work shows contempt for Lord Hodge and his court.

    Similarly, it seems odd to me that his Lordship considers it irrelevant that, according to the BBC, there is a strong possibility that D&P planned to lie through their teeth to pursue their own advantage. Unlearned folks like myself wonder how their submissions to the court – or any part of their conduct – can be given credence while this allegation hangs over them. Lord Hodge himself says he is very concerned about the allegations. In the light of such serious doubts about the integrity of D&P, I am surprised that the court is apparently unconcerned about the legitimacy of their sale of Rangers* assets to Mr Green’s consortium.

    • ecojon

      @ Henry Clarson

      There is another way of looking at things and that is that LH is dotting every i and crossing every t to make sure that any decision he makes can stand up to appeal.

      He has been around long enough to know that as soon as he is seen to act in any way against the wider ‘interests’ of Rangers then he is liable to come under attack from the lumpen Rangers support and also more subtle pressures from some people at the highest levels in Scottish Society.

      Tbh I think the latter may have reached the stage where even they realise they a flogging a dead donkey and will probably be relieved to see the vultures consume the remnants of the Ibrox club so that they don’t actually need to ever associates with it or its cause again.

      But D&P have to be given every opportunity to reply to the allegations that come forward and as the American owner talks about things being taken out of context then LH will investigate that matter by listening to the whole conversation of the phone call in particular. That does not mean that he will listen to the whole tape and I would be surprised if he did for a number of reasons.

      • ecojon

        I should have said with regard to your comment: ‘I am surprised that the court is apparently unconcerned about the legitimacy of their sale of Rangers* assets to Mr Green’s consortium’.

        I think IMHO that the court is very concerned about the legitimacy of the sale but first things first and that is to establish whether there has been a COI. If that is found to be the case then as night follows day the question about the legitimacy of the sale will then be dealt with and that will be a separate matter as to whether the sale price was adequate.

    • Maggie

      @ Henry Clarson
      I’m in awe! Big fan! “What if there’s no Santa” is a work of genius.

  12. Violet Carson

    Being an internet and Rangers obsessive is really worthwhile. I haven’t had this much fun for years. I will be glued to this blog for the rest of the day. I am really surprised that that nice Mr Traynor isn’t feeding thoughts to his blog.

    • ecojon

      @ Violet Carson

      Perhaps Jabber is otherwise engaged as his boss feeds him and succulent lamb in equal volume through a mincing machine to shrieks of ‘But you told me it was all internet crap by bampots and Patrick would just nod it though’.

    • Maggie

      @Violet Carson.
      Hear hear Violet……Can’t believe I was out all day ( having a life 🙂 ) and am now playing catch up.

  13. Dhougal

    Dedication…..dedication…….dedication that’s wot you need ,if you want to be the best ,if you wanna beat the rest ……..dedication’s wot you need . Sooooperb Paul & Henry& Eco

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