Law Financial Ltd and Worthington plc Lay Claim To Rangers Assets and to Film Rights to the Takeover Story!

Worthington Group PLC released a statement to the Stock Exchange today. It can be read in full here. So what, one might say?

Apart from the apparent, or alleged, connections with Craig Whyte, some of which I looked at on this blog last year, I will quote the section from the release which has a bearing on our favourite Motherwell born billionaire and his once (and future?) football team.

The statement reads, at the relevant section:-

The Company is now pleased to announce that, as the first step in the possible acquisition of Law Financial Ltd (“LFL”), it has agreed to acquire a 26% stake in LFL for £250,000 payable in unsecured convertible loan notes.  The Company has also been granted an option to acquire the remaining share capital of LFL. The full acquisition would be subject to shareholder approval and compliance with any applicable Listing Rules.

LFL, a recently incorporated company, has a number of subsidiaries, namely Sevco 5088 Ltd, Law Capital Ltd, Litigation Capital Ltd and Media Litigation Ltd (LFL and its subsidiaries hereafter being referred to as the Law Financial Group).

The assets of Sevco 5088 Ltd include a claim, which has been independently reviewed by Leading Counsel who is also a Deputy High Court Judge, to all of the business and assets of RFC 2012 Plc which were purchased by Sevco 5088 Limited or Sevco Scotland Ltd from the administrators of RFC 2012 plc in June of 2012. Sevco Scotland Ltd was subsequently renamed The Rangers Football Club Limited and its share capital was acquired by Rangers International Football Club Plc, the shares of which are now traded on AIM. It is the position of Sevco 5088 Ltd that it is the rightful owner of the business and those assets. After examination of the evidence, Leading Counsel’s advice is that there is a prima facie case to answer.

It has also been agreed that, pursuant to the agreement certain other related rights, assets and causes of action will be transferred to the Law Financial Group or directly to Worthington. Those assets include the Book, Film and Television rights to the two takeovers of The Rangers Football Club in 2011 and 2012 as it relates to Craig Whyte. It is intended that these rights will be commercialised in due course.

When one thought that the Rangers saga could get no more complicated … along comes another complication!

This simple diagram makes all of the connections clear

This simple diagram makes all of the connections clear

Law Financial Limited was incorporated on 12th March 2013. Its registered office is at 48 Skylines Village – an address very familiar to those who have studied Mr Whyte’s various company involvements over the years.

Law Capital Limited was incorporated on the same date and with the same Registered Office as also were Media Litigation Limited and Litigation Capital Ltd.

Twelfth March 2013 was a busy day in 48 Skylines Village!

So we have a new company of which 25% is being sold off to Worthington plc and as a result valuing the “Law Financial Group” at £1 million.

The only company forming part of the group which is older than 12th March 2013 is Sevco 5088 Ltd. Companies House records disclose the apparent “resignation” of Craig Whyte and of Aidan Earley as Directors on 16th April 2013, their appointments having been recorded on the site on 12th April 2013. In addition the Registered Office is again listed as 35 Vine Street, being the offices of Field Fisher Waterhouse. Only a few days ago the Registered Office was changed to Skylines Village!

However it is clear that those in charge of the Law Financial Group have been able to persuade the relevant directors of Worthington plc to make a substantial investment in the Group.

What assets are they buying?

As we see from the statement, the Group has “Leading Counsel’s Opinion” that Sevco 5088 Ltd is in fact the true owner of the assets of Rangers (being those sold by Duff and Phelps and which are owned by Rangers Football Club Ltd (which was formerly Sevco Scotland Ltd)).

Now the statement does not make clear whether the assets were “sold” to 5088 or to Sevco Scotland – one might have thought that those in charge of 5088 would know if they bought the assets or not.

However the precise mechanism by which the assets came to Sevco Scotland Ltd do remain unclear, and there have been conflicting statements by Mr Green and by spokesmen for Rangers.

In any event the suggestion is that Sevco 5088 has these rights and that these rights form part of the assets of the Law Financial Group.

This, and the valuation of the company indicated by the sale to Worthington, might suggest that Sevco 5088 is not entirely confident that it is entitled to all of the assets, sold for £5.5 million and now worth £40 million or more. On the other hand, such a valuation might seem to suggest that the company views there as being a possibility it might be paid some money to “go away”!

It would therefore not surprise me if we were to see Sevco 5088 initiate court action seeking damages or return of the assets. The reason for doing so would not necessarily be for there to be what would be a long drawn out and expensive court battle, but instead for there to be a settlement negotiated to end the case.

On the same basis that my guess is that BDO will, in the fullness of time, initiate proceedings in respect of alleged “gratuitous alienation” and that RIFC PLC or its subsidiary will buy off the claim by paying a few million which will go to creditors of oldco Rangers, I would not be surprised to see a multi-million pound claim being made by 5088.

The goal will be for a quick payment of a couple of million or so to end the claim, and to end uncertainty which might affect further the share price of RIFC PLC.

There is of course no guarantee that Rangers would agree to settle. It might be seen as akin to blackmail but is in fact a legitimate legal tactic. How much would it be worth to Rangers to end that uncertainty?

There remains what would undoubtedly be the vexed question of who actually owns 5088.

Mr Green’s comments about “handing back” 5088 to Mr Whyte suggests that he accepts that he does not own the company. However the change of director details and of registered office back to the status quo suggests that Mr Green might not actually be fulfilling his pledge to resign and give the now apparently useless company back to Mr Whyte.

And of course we see that, according to the release, the book, TV and film rights to the story of the two takeovers is vested in 5088 but is to be transferred to Law Financial or to Worthington.

Hollywood might be calling for Mr Whyte, and for even minor players in the tale, we might too be saying:-

“I’m ready for my close up Mr De Mille!”

N D

Posted by Paul “Norma Desmond” McConville

Advertisements

436 Comments

Filed under Charles Green, Rangers

436 responses to “Law Financial Ltd and Worthington plc Lay Claim To Rangers Assets and to Film Rights to the Takeover Story!

  1. lord mac

    who would be up for a 5 day charity extravaganza in the secc with 12,000 in attendance every day at £10 per head with the hire of a lie detector , first day up imran ahamad , next aidin earley, the next Charles green, the next Craig whyte, followed by Neil doncaster 25 question to each what a show about 1million for charity after you do raffles and TV deals do you thing we should ask for a lie detector to be used or demand its use as Scottish football fans to make it all fair into the investigations a would maybe want Mr ogilvie to take a free test also thats just me cant just get enough lol

  2. david

    To everyone a good weekend.
    I will be posted AWOL for several days, my wife has been diagnosed with shingles, so I have to take on some unfamiliar domestic duties and look after her as well as work.
    All the best.
    Keep laughing at Rangers.
    Assist your fellow Scots of whatever race or religion.
    Vote YES in the referendum.
    Keep the heid ( unlike me at times )
    Portpower- go and help your local team ( Port Glasgow I presume ), their new 3g pitch is one of the best in Scotland. They need to win almost all their remaining games to stay up; the guys that run that club deserve a medal.

  3. cam

    Leggo in good form today,he won’t be getting any freebie’s from Craigie now.
    Only a couple more posts till the 400 mark and i get my bonus for promoting this site to the premier division.
    Off to bed and then up to see Lenny’s press conference.

  4. @cam, I don’t think Lenny will appeal, because it might roll over onto the Scottish cup final. Unbelievable decision from the suits though and they have made a rod for themselves. I think that time warp Charlie is gonna get a sore wan noo.
    With the furore over his P**i comments, and the noises made by the much needed sponsors, I don’t see they have much choice! After all his comments were distasteful to a higher degree.
    What’s happening with the investigation? Heard anything? Considering the amount of French holiday homes that the Ibrokes owners/pretenders/claimants, seem to have, maybe Inspector Cluoseau of La Sorte, will take over the case!
    That tune would sound brilliant on the flute. !

    • JimBhoy

      @Barca Good post mate… I hope the other SPL managers come out and condemn this pathetic penalty and show a bit of solidarity…

      The Ineptitude of the aholes running our game knows no bounds. IMO they are running scared of Chico. He has been messing with them for ages in various comments and they have done, nothing..

      As an aside (generally and not Chico related) I posted way back that the ‘Fit and Proper’ person test should have a period of time where the person is under review, a probationary slot and if he is called up to the footballing authorities twice, on disrepute charges, in that period, then the club are hit with an automatic hefty fine, if he is called up again he officially fails the test and told to sling his hook, if he remains at the club at any level the clubs membership is suspended…

  5. Ed Paisley

    Mr David Murray must be feeling somewhat beleagured these days.
    His tin-shed business empire built on a mountain of bank borrowing is collapsing. The deal he did with the world’s crookedest man to liquidate Rangers and pull of the switcheroo has failed. His willing accomplice Craigy Whyte has more voice recordings than the BBC archive and he is ready to release them to the world. And to make matters even worse, I read in the Wine Growers Gazzette that David’s new vintage compares unfavourably to a mix of Bucky and Vimto.
    An honourable man would fall on his sword for far less. But of course,Mr Murray has no honour. We know that from his tax cheating, his pandering to the sectarian hatred of the mob and not forgetting the disgraceful Boumsong carve-up with his pal Souness.
    Oh the ignominy, oh the disgrace – and all the opprobrium will come back to whete it belongs: at the feet of Sir David Murray.

  6. Raymilland

    TRFC are truly walking the Green mile; and the current investigation of their chief executive will not delay the inevitable.

    Campbell Ogilvie is the only person that could convince the supporters of TRFC that it is the correct decision when the time arrives to commutes sentence of the club.

    The numbers 5088 shall for ever be remembered for that of the wisdom of their leader:

    http://www.biblegateway.com/resources/dictionary-of-bible-themes/5088-David-character

    I cannae wait for the movie; it’s a pity Charlton Heston is dead.

  7. ecojon

    @ Raymilland

    I have to say that I found the casting of a contributor to Copland Road quite hilarious and right on the mark.

    http://www.thecoplandroad.org/2013/04/craig-whyte-movie.html

  8. JimBhoy

    @David Hope the wife makes a speedy recovery mate… Best of luck.

  9. Monti

    Morning everybody, two more sleeps & the Green & white ticker tape will be fluttering around paradise, as the sun makes the SPL CHAMPIONS trophy glimmer in the Parkhead cauldron. Tainted? We have won this championship playing against 11 full time teams, whilst paying all our taxes & submitting audited accounts & contributing tens & tens of thousands to various charities across the world, Brother Walfrid we pay homage for what you delivered to us, Celtic football club, in your 125th unbroken year rise up & be proud stand tall & when the players look into each others eyes in the dressing room on Sunday, remember you are part of something very,very special in your lives, those special words I hold so dear & mean so much to all of us, are about to be spoken on Sunday…..CELTIC ARE THE CHAMPIONS OF SCOTLAND! for me these words are very meaningful, get ready to party bhoys & Ghirls……Tommy Burns, Jinky, Big Jock, Johnny Doyle & many others, you are still with us! HH!

    • Monti, ‘Tainted titles’, Titles won & procured under a sectarian signing policy are the most tainted of all. If Sevcovites are keen to retain them as a cherished part of their history then that’s a matter for them. How many of the 5 stars were procured under that policy? They had a chance to separate themselves from “that history” but chose not to.
      Hail Hail to all bhoys & ghirls this championship Sunday.
      See you all there 🙂
      BTW Monti, hats off to you for your apology, good man!

  10. Chris McLaughlin on Twitter reporting that Charles Green is about to resign as CEO of The Rangers.

  11. HI. Paul,
    I find most of your work on this site to be very interesting and informative.
    The saying that the pen is mightier than the sword has no equal, and you
    have that gift when you convey your knowledge.
    Unfortunately some of the more intelegent bloggers on this site seem to
    have left reason behind, and are now indulging in tit for tat hair pulling playground fighting.
    As for the trolls who seam to have become a fixture on your site and think they are part of the playgroup, maybe if we did the simple thing and completely ignored them they would go away.
    This site is for ordinary people like myself and others to learn facts
    which we would not find in the main stream media. Some of the bloggers
    and guest writers have been instramental in keeping the readers ahead of the game, and I thank them for there diligence and skill in unraveling some
    of the maize we find ourselves in called ibrox park.
    The English are known for dividing the people to conquer the problem so
    lets stop the in fighting and consentrate on working as a team to find a way
    out of the maize.
    This is not a good period for Scottish football because it has fortified the Media and S.F.A. into a despondent desperate force united in keeping a dying institution alive.
    Unfortunately this can only be achieved by deception and self interest, losing a club twice would be incomprehensible.
    The country is not ready for the truth, History will show that somewhere
    along the line a deal was done to keep the peace.
    The Rangers fans will not accept the death of there team and rightfully so
    the common working man was not to blame for the demise of their team.
    We the Celtic supporters will hand down ‘Downfall’ and ‘Downfall 2’ to our Grand children
    happy in the knowledge we new the truth.
    Peace be with you.

  12. NOW who is Manchester United
    see earlier post

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s