So the verdict has been pronounced…
30 May 2013
Rangers International Football Club plc (the “Company”)
Conclusion of Independent Review
On behalf of Rangers International Football Club plc, the non-executive directors of the Company (the “Investigation Committee”) engaged the law firm Pinsent Masons LLP to investigate the connections between Craig Whyte and former and current personnel of the Company and its subsidiaries (the “Investigation”).
The Investigation was overseen by Roy Martin QC.
The Investigation concluded on 17 May 2013 and Pinsent Masons and Roy Martin QC have reported to the Investigation Committee. The Investigation Committee is satisfied that a thorough investigation was conducted despite the inherent limitations of a private inquiry. Continue reading
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.”
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