Rangers Rebels Now Taking the Company to Court!

My prediction record is not a great one. As I said earlier this week when discussing the refusal by the Rangers Board to accept the motion seeking appointment of new directors from the “Rebel” side, the rebels could go to court but I thought that highly unlikely…

This morning we have a further announcement to the Stock Exchange by Rangers.

Craig Whyte in Court of Session Next Week for Four Days?

The former owner of the company which owned 100% of the company which owned 85% of the shares in the company which owned Rangers Football Club (whew) finds himself scheduled to be in court again next week. Starting on Tuesday 13^th November, and for the following three days, the court lists disclose that a Proof (or hearing of evidence) is listed in the case of Kim Whyte v Craig Whyte.

This is the culmination of the action which commenced last year in relation to Mrs Whyte’s claim for aliment (or maintenance) for herself from her estranged husband, and which has been back in court in the meantime as a result of Mr Whyte allegedly failing to stick to the deal.

First of all, it is highly unlikely that the case will go ahead.

Duff & Phelps Gets Serious – Now New York HQ Tries To Clean the Mess

Duff & Phelps await the next salvo from the BBC. After last night’s exposure of David Grier apparently agreeing that he and Duff & Phelps knew about the Ticketus deal prior to the Craig Whyte takeover, I imagine there are nervous people in London and Manchester awaiting what is coming next.

And a bad sign perhaps for D&P in the UK comes from the identity of the “spokesman” quoted late last night by the BBC responding to the revelations last night.

As the BBC reported:-

Duff and Phelps spokesman Marty Dauer said: “As we have previously stated, Duff and Phelps maintains that our conduct of the Rangers administration was carried out to the highest professional standards.

“We do not respond to information that is taken out of context, as we believe is the case in the BBC story.

“We welcome the opportunity to review a complete copy of the information that the BBC references in its story.”

Who is Marty Dauer?

He is a long way from being a mere “spokesman”.

He is in fact “a managing director and the chief marketing and communications officer in the firm’s New York office”.

Legal Framework the for Winding Up of the ex-Rangers Football Club PLC

In light of last night’s Mark Daly revelations about Mr Whyte recording David Grier of D&P making allegedly incriminating admissions, I wanted to list the rules and regs and procedures to be followed regarding the liquidation process.

I hope this might be of some assistance!

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The starting point was the “virtual” creditors’ meeting on 12^th October. The creditors were to vote on two resolutions, the terms of which are noted below.

From Duff and Phelps’ Final Report to Creditors (accessible via Rangers.co.uk)

15. Resolutions

The following resolutions are proposed by the Joint Administrators and should be voted upon using the form at Appendix 8.

RESOLUTION (1)

15.1 That the Creditors approve the remuneration, expenses and outlays of the Joint Administrators in respect of all accounting periods not previously approved, being, in respect of remuneration only, £2,930,644 for the period 14 February 2012 to 29 June 2012 and £191,039 for the period 10 August 2012 to 14 September 2012.

RESOLUTION (2)

15.2 Without prejudice and subject to (i) the statutory priority in respect of the Joint Administrators’ remuneration and expenses under paragraph 99 of Schedule B1 of the Insolvency Act 1986, and (ii) the determination of any appeal or application by the Joint Administrators to the Court under the Insolvency (Scotland) Rules 1986 for determination of their remuneration and fees to the extent that these have not been agreed by the Creditors;

(1) that the Joint Administrators do make an immediate application to the Court seeking the discharge of the Administration Order in accordance with paragraph 79 of Schedule B1 to the Insolvency Act 1986, and;

(2) to seek the winding up of the Company in accordance with section 124 of the Insolvency Act 1986.

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.