Category Archives: Insolvency Act 1986

On Possible Gratuitous Alienations, Good Faith and Sevco Shuffling

Many thanks to mick who reminded me of a very interesting snippet reported on STV.tv on 27th June, which I had previously discussed here.

“A spokesman for Rangers confirmed that there had been a transfer of assets between one newco and a second separate newco. He told STV: “For the avoidance of doubt, Sevco 5088 Limited bought the assets of the Rangers Football Club and then transferred them to Sevco Scotland Limited so that all the assets would be in the Scottish registered company that is Rangers FC.”

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The Rangers CVA Proposal defined “Sevco” in the following terms in paragraph 4.17:-

“ … an offer was made by Sevco 5088 Limited (Sevco) …”

Para 4.19 stated:-

“Consequently, on 12 May 2012, the Joint Administrators agreed and signed an offer letter with Sevco (the Offer Letter) and granted Sevco exclusivity to complete a takeover of the Company or a purchase of the Company‘s business and assets by 30 July 2012. Sevco made a payment of £200,000 to the Company for such exclusivity.”

Para 4.23 stated:-

“In the event that either this CVA is not approved, or the other Conditions of the loan are not satisfied or waived by 23 July 2012, Sevco is contractually obliged to purchase the business and assets of the Company for £5,500,000 by 30 July 2012. All further terms of that sale have been agreed in advance and are confidential.”

So, it was all nice and simple. Sevco 5088 Ltd was to acquire the assets of Rangers Football Club PLC (RFC) from the administrators. The assets though ended up in the hands of Sevco Scotland Ltd, a separate company. As far as the title to the land goes, it is common for missives to be concluded in the name of the purchaser or its nominees, and therefore Sevco 5088 Ltd could acquire the assets and instruct the seller to transfer title to Sevco Scotland Ltd.

It seemed the issue had been resolved and clarified. Continue reading

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Filed under Administration, Charles Green, Insolvency Act 1986, Rangers

Charles Green – The Value of the Assets of Rangers FC – Pennies or Millions of Pounds?

The number of talking points arising from Mr Green’s proclamation earlier this week means I have not been able to finish my all-encompassing analysis. Instead I am putting up comments on parts of the statement.

Today’s deals with the following words by Mr Green:-

“To make it crystal clear, the new owners purchased all the business and assets of Rangers, including titles and trophies.

“Any attempt to undermine or diminish the value of those assets will be met with the stiffest resistance, including legal recourse.”

Charles Green, CEO of the Rangers FC Ltd

Let us remind ourselves what these assets consisted of, shall we? Continue reading

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Filed under Administration, Charles Green, Insolvency Act 1986, Rangers

Rangers Administrators Billing over £60k per week Since Selling all RFC Assets

In which I look at what Duff and Phelps have cost the creditors of Rangers, and what they have been spending time on since they sold off all the assets in June.

I also take a very “broad axe” approach to the value of the administration process, which seems to suggest that the creditors would have been several million pounds better off if the liquidators had come in on 14th February!

The figures are mind-boggling.

That applies to each of the total costs, the weekly bills, the hourly rates charged, and the amount of time spent on this job. Continue reading

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Filed under Administration, Insolvency Act 1986, Rangers

Administrators! How To Spend Millions in Creditors’ Interests – The Rangers Way

Duff and Phelps are finally on their way out of Scottish football. The arrival of BDO as liquidators at Ibrox is imminent.

However, let us not let D&P leave without noting some things they are good enough to have published for us all to see.

The last report Rangers – Progress Report – 24 August 2012 makes clear where the money raised for creditors has gone. Remember that D&P consider that they have, despite a £4 million trading deficit, succeeded in fulfilling the second goal of administration, namely to have achieved a better outcome for creditors than would have been achieved through liquidation without administration.

Compare the August Report with the one in July Duff Phelps Report July 2012

Amongst the details we see the costs paid by D&P to outside agents, advisers etc.

Taking them in financial order, we can see the huge sums disappearing out of the administration, all, of course, incurred in the interests of the creditors… Continue reading

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Filed under Administration, Football, Insolvency Act 1986, Rangers, Uncategorized

For Sevco’s £5.5m It Bought all Rangers’ Players, Fixed Assets, Goodwill AND £2.67m prize money

Those kind chaps at Duff & Phelps are scrupulous about fulfilling their duties, even where they have sold off all of the assets and business of Rangers Football Club PLC (In administration). Yesterday, with a non-existent fanfare, their latest Report was published, dealing with the six months (yes, it has only been six months) since they were appointed.

You can view the full Report here. Rangers – Progress Report – 24 August 2012

My plan is to do a couple of posts about it, but there is one issue which I have been going on and on and on and on about in my blog since February, I think!

The interests of the creditors.

It looks to me, as an outside observer, that there is no relation between the value of what Mr Green’s company acquired, and the price it paid. This is even more marked when the issue of money due to Rangers (in administration) is factored in, as these sums too were sold to Sevco.

As well as having a look again at “gratuitous alienations” I pose a quiz question regarding the value of the Rangers “history” which forms part of the goodwill, and the price paid by Mr Green for them. Continue reading

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Filed under Charles Green, Football, Insolvency Act 1986, Rangers