Today, Duff & Phelps released the results of the 20th April creditors’ meeting. You can see it here – Result of Rangers’ Creditors’ Meeting It is clear that the resolutions, as they stand, are now as modified by HMRC, rather than as originally framed by Duff & Phelps. As is not surprising in this saga, matters are not clear yet.
There is some discussion about whether or not the resolutions allow a sale of the assets of Rangers to Charles Green without further creditor approval. I frankly do not see the point of the tightening up of the Resolutions, unless it gives HMRC power to “interfere”. Why would they have revised the Resolutions to put in place their own liquidator, if only to allow a sale of assets at an alleged knockdown price? I think there is enough ambiguity, as I mention below, to meet the requirement of HMRC which is that a CVA needs to be approved by creditors; an asset sale needs to approved by creditors; and if those options are gone, because Mr Green walks away, then BDO come in as liquidators. Continue reading
Now the weekend has passed, Rangers-related activity can re-commence full steam ahead! Mr Green met today with the fans’ representatives. There has been no word as to whether or not he has now taken up day-to-day management responsibilities, as suggested in the (possibly erroneous) CVA proposal. See my earlier post about that.
What did he have to say today? As before, my comments are in bold beneath Mr Green’s statement.
CHARLES GREEN, who is leading a consortium purchasing Rangers Football Club, issued the following statement tonight.
He said: “I had a very constructive meeting with the Rangers Fans’ Fighting Fund today and we discussed a wide range of issues. We are united in recognising that a successful outcome to the CVA proposal is extremely important for the club, our fans and many businesses who have dealings with Rangers. Approval of the CVA would give everyone a huge boost of confidence. Continue reading
In which I suggest, I am sure wrongly, that Duff & Phelps cannot proofread and that the CVA Proposal might not therefore be entirely accurate.
According to the Rangers CVA Proposal produced by Duff & Phelps today is an important day in the process of saving this fine Scottish institution. In all that Duff & Phelps have produced so far, the CVA Proposal is perhaps the most important. This document needs to persuade the creditors of Rangers Football Club PLC, and especially Ticketus and HMRC, that the deal being offered by Mr Green whereby he lends Rangers just over £8 million to fund a CVA is the best deal for the creditors. I will number crunch in a later post, but it is clear that the paperwork produced in the CVA has to do the best job possible to persuade the creditors, and therefore will have been finely honed, edited, reviewed and polished, won’t it? Continue reading
Mr Green and his consortium are brilliant businessmen.
Their CVA plan consists of them lending Rangers Football Club PLC £8.5 million repayable with interest by 2020. The purchase price they are paying is £1 for sale of Rangers FC Group Ltd’s shares.
In return for this loan, which will of course be repaid, unless the rescued Rangers go into administration again, they will get 85% ownership of all of Rangers assets, including Ibrox, Murray Park, all the players and the goodwill and intellectual property.
This result is better for creditors than a sale to a newco, because if that has to happen Mr Green will pay a price of £5.5 million to buy all the assets of the club, including the money due to Rangers for player sales. Continue reading
In which I look at what Sir David Murray thought was needed to give a CVA a reasonable chance of success and what this might mean for Mr Green’s efforts to make a profit out of his proposed investment.
As we await the formal revelation of the details of the CVA, which has already resulted in Duff & Phelps being on the receiving end of some less than complimentary comments, I wondered if any financial experts had offered their opinions on what would be needed to give a CVA a reasonable chance of being accepted.
I then saw that Sir David Murray had been asked this very question by Jeff Randall of Sky News on March 16. The full transcript of the interview is here. I recommend it as a good read.
However, and with thanks to Sky News, I reproduce the following part of the discussion.
“Jeff Randall – How much, in your view, would he (Paul Murray and the Blue Knights) need to raise?
Sir David Murray – It’s guess work because it’s interesting, we’re meeting today, the day that bids are going in for the club but I would have thought, probably, if it’s a debt free club, probably £20-25 million to then put into CVA to have a reasonable chance of paying a reasonable payment in the pound, I would have thought.” Continue reading