The creditors’ meeting on Friday 12th October has approved the liquidation of RFC 2012 PLC (the former Rangers Football Club PLC). Mr Clark of Duff & Phelps announced that the process of appointing BDO as liquidators was to start imminently.
At this stage there remain many questions about the administration process, the value to the creditors of the actions of Duff & Phelps. With hindsight, it seems clear that the creditors would have got a far better result from an immediate liquidation than from the process which has been followed.
The BBC reported Mr Clark’s statement and I have some comments upon it, which are in bold.
Joint administrator Paul Clark said: “Creditors have today given their approval for the administrators to bring the administration process to an end and to place the company into liquidation.
“As a result, we as administrators have instructed our legal team to prepare the necessary application for lodging in the Court of Session as a matter of urgency.
The process is as follows. The application is made to the Court of Session. The court will place the liquidator temporarily in control of the company and make an order for publication of an advert notifying interested parties of the application and appointing any that wish to do so to lodge written Answers within eight days. Thereafter, subject to the court’s views, the liquidators’ appointment would be confirmed, and they would proceed with the winding up of the company.
It seems a trifle ironic that Mr Clark makes reference to “a matter of urgency”. After all, the assets and business of the company in administration were disposed of in mid-June. Four months have passed during which D&P have continued charging fees, running over the period from June to August at £60,000 per week. All they have had to do, from the outside perspective, is to look at the fast-dwindling bank balance and to instruct their lawyers in relation to the ongoing English High Court proceedings. Continue reading
On 22nd June Lord Hodge dealt with a hearing into the administration process of Rangers Football Club PLC (as it then was).
The BBC reported the outcome as follows:-
The issue over any possible conflict of interest was raised by Lord Hodge at a hearing about the administration process on Friday. The judge said he took no view about what the BBC had said, but wanted to know whether Duff and Phelps had obtained and acted on legal advice on the question of conflict of interest. Lord Hodge said he had done nothing until now because he did not want to hinder the process of Rangers seeking a creditors voluntary agreement (CVA).
But, he told the accountants’ lawyers: “There is considerable public interest in this jurisdiction in relation to the administration.”
Lord Hodge added: “I do not want the administration to come to an end without having received that report.”
The report demanded by Lord Hodge is expected to be ready in three weeks and a further court hearing is likely to be arranged after that.
(As a side issue, I will point out that “CVA” is not accurately described above by the BBC, but actually stands for Company Voluntary Arrangement.)
Since June, apart from the declarations at the time by D&P that they welcomed the investigation as being a chance to clear their name (I paraphrase) not much seems to have happened. Continue reading
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
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
A quick run round the developments of the last couple of days in what is becoming the greatest show on earth.
Some thoughts on the return of Mr Kennedy and his dispute with Mr Green – could Mr Green have been taken out of the loop by the investors?
What about the season tickets – you cannot charge Rogano prices for a Blue Lagoon product.
Why did Southampton pay anything for Steven Davis, and can BDO use that transaction as evidence of an undervalued sale? Why did Sevco get the cash?
Is it of note that football agents are gathering round the running of Sevco Scotlands’s team?
Four business days for transfer of membership…the clock ticks ever louder…
Lots of questions – fewer answers! Continue reading