Dunfermline Athletic Football Club Limited has entered administration. Facing a winding-up petition from HMRC, and unable to pay the taxman what was demanded, the only way to keep the business afloat was to appoint an administrator and to hope that the breathing space this gives the company will be enough to allow the season to be finished, and then for the necessary asset sale or CVA to take place to preserve the existence of the football club. As I mention at the end of this piece, there is one theoretical possibility which could provide a quick exit from administration, with bounty for the creditors (and if it did happen, undoubtedly a busy summer of blogging on my favourite issues of law and football!)
The man picked to be administrator is Bryan Jackson. As well as being a top quality Chartered Accountant and Insolvency Practitioner, he now has the accolade of having run more Scottish football teams than anyone else in the country’s football history (and if not then I have no idea who could surpass him). Continue reading
In response to my post re Gratuitous Alienation earlier this week, I noticed that Clarkeng made a few comments disagreeing with my thesis. I think that there may be crossed wires on our parts so I thought I would clarify my argument.
Some of Clarkeng’s comments are indented below, with my responses in bold beneath.
As far as BDO challenging D&P about the value achieved for the sale of the business and the assets I do not think you will hear anything further despite Paul’s suggestion.
To be exact BDO would NOT be challenging Duff & Phelps. Instead they would be “challenging” the purchaser, Sevco Scotland Ltd (now Rangers Football Club Ltd). An administrator acts as an agent for a company in administration, and the actions of the administrator are the actions, legally, of the company.
This is unlike liquidation where the actions are those of the liquidator, as the company is in no state to take any action itself.
As for time scales, if there is to be action by BDO regarding an apparent gratuitous alienation, then I would not expect it until near the end of this year, at the earliest. Liquidations take time, especially where there are as many complications as seem to exist in the case of RFC 2012 PLC. Continue reading
In the first part of my yearly predictions post, I considered the Nimmo Smith Commission and the outcomes of it. I wrote:-
Nimmo Smith Inquiry will find that the rules of the SFA/SPL were broken by “Rangers Football Club”.
RIFC will challenge this in the courts but fail as a result of them failing to participate in the Inquiry process.
The Nimmo Smith Inquiry will impose a financial penalty on “Rangers Football Club” rather than stripping of titles.
This too will be challenged unsuccessfully in the courts.
RIFC will refuse to pay, and the football authorities will not have resolved by the end of the year how to deal with that.
I think I might be unique in arriving at those outcomes. On one hand there is a view that the iniquities of the former Rangers regime can only be marked by various league titles being taken away, even if not awarded to Celtic, on the basis that numerous players were ineligible over many years. Continue reading
Craig Whyte’s declaration he was the catalyst behind the Rangers sale to Charles Green shook Ibrox to its foundation and fired my memory into gear. However before dissecting my lonely grey cells let me jog your memory as there are a few twists and turns along the road to liquidation.
Rangers entered administration on 14 February 2012 and after various bidders dropped by the wayside American tycoon Bill Miller was declared ‘preferred bidder’ for the failed club on 3 May by Rangers administrators Duff & Phelps who were reportedly left ‘stunned’ just five days later when Miller walked away from Ibrox.
Commenting on the withdrawal at the time, administrator David Whitehouse said: ‘Given the fact that Mr Miller did not enter into an exclusivity agreement, we informed all other known potential bidders at the time the door was not closed.
‘As a consequence of Mr Miller’s bid being accepted, three other bidders have come forward to express their interest in buying the club and these offers are being evaluated with the utmost urgency’. I am unclear whether the Sevco offer is included in the trio but the Sevco bid was accepted by the administrator on 14 May. Continue reading
I’m not in the CoS afternoon I’m afraid. It seems that Collyer Bristow are challenging D&P’s application to end the admin and appoint BDO.
CB’s lawyer hasn’t spoken yet, but it seems that they want nothing further to happen on the admin until the ‘MCR’ issue has been clarified.
Ticketus emailed D&P that, “for entirely commercial reasons”, they don’t currently intend to challenge D&P’s decision to reject their claim>
<but Ticketus reserve all rights (e.g. to press their claim against the liquidators). Ticketus voted against D&P fees, but vote was ignored. Continue reading