Regular readers will know that I believe there is a very strong case to say that the sale of assets of Rangers Football Club to Sevco (insert precise Sevco entity here) in June 2012 was not for full value.
That is NOT to say that anything illegal, criminal or underhand happened. Rather Mr Green managed to secure assets worth many millions of pounds for only £5.5 million. Despite his fall from grace, he is still up for Businessman of the Year, at least in my eyes!
It is my view that, subject of course to the detailed investigations carried out by the liquidators BDO, there is a strong case for asking the purchaser of the assets to prove that an adequate consideration was paid. As readers who can recall my previous posts on this topic will know, it is not for the liquidator to show that the price was too low, but for the buyer to show it was adequate. In addition, it is not necessarily the case that the best price received after a marketing process would be “adequate” in all the circumstances. 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
A brief note (yes – it will be brief).
Rangers International Football Club PLC’s interim results are out and can be read in full here.
People will pore over them but is seems clear that all is well on the Good Ship Rangers, and that Captain Green, Commodore Murray and First Mate Stockbridge are steering a course as plotted in its business plan and flotation document.
There is one squall on the horizon that I want to mention at this point.
As with weather approaching a vessel on the high seas, it might change course, missing the boat. It might blow itself out before reaching it. It might even turn out to be a smudge on the lookout’s telescope, and not there at all. Continue reading