Another "asset" mortgaged off

[calscot 0]

I think E is the least likely and that Whyte will fight tooth and nail to avoid it. I think he sees plan D as the more realistic worst case scenario.

[forlanssister 3,114]

I think E is the least likely and that Whyte will fight tooth and nail to avoid it. I think he sees plan D as the more realistic worst case scenario.

 

Caveat to my original reply, I don't for one minute think Whyte will lose most of "his" £18m.

[maineflyer 0]

Sadly I think scenario E is the most likely outcome, and what a f*&king mess that will be!

The unseen part of his plan may be the introduction of other investors, who obviously cannot reveal themselves until the tax position (and therefore the likely remedy) is established.

[forlanssister 3,114]

The unseen part of his plan may be the introduction of other investors, who obviously cannot reveal themselves until the tax position (and therefore the likely remedy) is established.

 

Do you mean investors who will:

 

A) Invest with Whyte at the helm ?

 

or

 

B) Invest with the condition he gets to F*&K asap ?

[craig 5,199]

Do you mean investors who will:

 

A) Invest with Whyte at the helm ?

 

or

 

B) Invest with the condition he gets to F*&K asap ?

 

What difference does it make so long as the club are removed from the dark cloud hovering over them ?

[BrahimHemdani 1]

E. Same as D but creditors refuse to budge - Whyte liquidises the club and uses the assets starts a new one using the Pheonix scenario. Liquid assets are stripped to pay creditors, Whyte loses most of his £18M but owns the new company. Rangers readmitted into the SPL with heavy sanctions and no European football for three years. Club will be stable but with reduced assets. Players will probably have to be sold and income will be reduced from no European football. Highly embarrassing for the club and a break in its continuity. Lots of slagging from Celtic and claims our haul of trophies no longer counts for the new club.

 

We would have to start in SFL3.

[Zappa 0]

Whyte may only have spent a pound so far, but the tax case is pivotal.

 

I agree with this, but not with your other specific scenarios Cal because we don't have enough information. What we do know from the shareholder circular is that ALL of the so-called "invesments" will become debts in the event of insolvency.

 

Am I misunderstanding the situation? The way it reads is that Whyte will be paid back or due to be paid back all of his "investment" in an insolvency situation, is it not?

[BrahimHemdani 1]

Am I misunderstanding the situation? The way it reads is that Whyte will be paid back or due to be paid back all of his "investment" in an insolvency situation, is it not?

 

NO, I don't think you are (misunderstanding the situation).

 

As I see it, Whyte is on a no lose. If we win the tax case (unlikely in my view) he writes off the debt but owns the Club which is then worth two or three times his investment. If we lose then as you say, the "investments" become debts and he can sell the Club debt free and make a quick turn on his money, simples.

 

Or am I missing the point?

[craig 5,199]

Not to be questioning you BH but on what grounds do you believe it is unlikely we win the tax case ? do you have any insight into EBT's and the taxation of them ?

[craig 5,199]

Maybe it is me missing the point but I see no harm in Whyte protecting himself going into this.

 

He bought the club and accepted a contingent liability which is potentially lethal to the club. Why should he NOT protect himself ? SDM would, IMHO, have let the club go under - it did NOT look like SDM was making any attempt to protect the club at all.

 

Now some will say Whyte is only trying to protect himself, fair enough. But at least he is doing SOMETHING other than burying his head in the sand.