Quick Sale Vital and no Europe next season - Administrator statements

[Rangers Football Club 0]

ADMINSTRATORS accelerate bid for new buyers of Rangers

 

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Duff & Phelps, the Administrators of Rangers Football Club, today issued the following statement.

 

David Whitehouse, Joint Administrator, said: "We are announcing today we are accelerating the sale of Rangers Football Club.

 

"The Club is in a perilous financial situation and that should not be under-estimated. Regrettably, we have been unable to agree cost-cutting measures with the playing staff on terms that will preserve value in the business. We understand the players' position as the scale of wage cuts required to achieve these savings without job losses were very substantial indeed.

 

"In view of this, we are faced with a situation of making redundancies within the playing staff on such a scale that would materially erode the value of the playing squad. We are striving to strike a balance where cost-cutting measures can be implemented but do not destroy the fabric of the playing squad to the extent that it will inhibit the prospect of a sale.

 

"However, no one should be in any doubt that in the absence of sufficient cost-cutting measures or receipt of substantial unplanned income, the Club will not be able to fulfil its fixtures throughout the remainder of the season.

 

"As a result, we are expediting the sale process and over the next few days we will be holding discussions with prospective purchasers who have declared their interest. The Manager, Ally McCoist will play an integral part in thesediscussions.

 

"If however it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting measures at the Club."

 

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and another statement -

 

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Duff & Phelps, the Administrators of Rangers Football Club, today issued the following statement:

 

Paul Clark, Joint Administrator, said: "As regards the Club playing in European competitions next season, there is no realistic prospect of the Club being able to fulfil its obligations prior to the March 31 deadline set by UEFA.

 

"There are four main reasons for this and they lie in the stewardship of the Club prior to going into administration. First, as we have stated from the outset, the likelihood of the Club being able to emerge successfully from administration before this deadline as indicated by the Chairman was, at best optimistic given the perilous financial situation at the Club at the time of insolvency.

 

"Second, the company accounts cannot realistically be signed off by auditors in a manner that would meet the criteria required by the footballing authorities. Even if the audited financial statements are issued prior to the end of March 2012 we would expect them to be qualified by the auditors such that under UEFA requirements the Club will have to satisfy a going concern test confirming how it will continue to be funded until the end of next season. Without knowing who will be the owner of the Club at 31 March, it is impossible to provide suitable comfort in this respect.

 

"Thirdly under UEFA regulations the Club must have paid or come to a satisfactory settlement with all social taxes that were outstanding at 31 December 2011. We estimate those social taxes (being PAYE and NIC) to be at least £5m. We cannot now see a scenario where those taxes will have been paid or compromised to the satisfaction of HMRC by the end of March 2012.

 

"The final major hurdle is that the Club must have paid or compromised all of its outstanding "Football Creditors" prior to the deadline of 31 March 2012. That issue is again extremely unlikely.

 

"As administrators, we will make every effort to seek dispensation from the footballing authorities given the extraordinary circumstances in which the Club has been placed.

 

"There has, perhaps inevitably, been speculation about Rangers Football Club facing liquidation. As we have stated previously, we remain very confident that Rangers will not cease to exist and the team will continue to play at Ibrox.

 

"If a Company Voluntary Arrangement is not possible for any particular reason, any buyer of the Club and its assets would complete that purchase through a sale by the Administrators allowing the Football Club to continue to operate with the old company then being placed into liquidation prior to dissolution.

 

"We are, however, doing our best to ensure the Company trades viably during administration and this will require a rigorous cost-cutting programme. Our preferred option remains to reach a point where a Company Voluntary Arrangement is reached and the Club can emerge from administration as a viable business within its existing corporate shell. As stated there is a possibility that if a new buyer is identified a financial case may be made to sell the business and assets of the old company, but that is not our preferred approach at this time.

 

"We are aware of the statement from Mr King. We note his comments regarding the Ticketus arrangements but as this issue is subject to ongoing discussion and examination, it would be inappropriate for us to comment further."

Edited March 7, 2012 by Zappa

[54andcounting 0]

I don't like the sound of.......

 

"If however it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting measures at the Club."

[BlueMazza 0]

I don't like the sound of.......

 

"If however it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting measures at the Club."

 

Agreed, basically they are saying we will be unsellable and most likely liquidated.

[andrew_2010 0]

I was more concerned at...

 

"However, no one should be in any doubt that in the absence of sufficient cost-cutting measures or receipt of substantial unplanned income, the Club will not be able to fulfil its fixtures throughout the remainder of the season."

[johnnyk 158]

Agreed, basically they are saying we will be unsellable and most likely liquidated.

 

unless someone steps up and take us over this week then that's what it sounds like

[BlueMazza 0]

unless someone steps up and take us over this week then that's what it sounds like

 

Which then makes me believe Dave King's statement was more accurate than Paul Murray's, AND Craig Whyte YET AGAIN came out with a bunch of lies.

 

maybe they should all have waited til this afternoon to make their impressive statements.

[Bears 0]

Seems like the administrator have been fluffy with the facts all along. They said they did not believe there'd be a need to liquidate us, but didn't guarantee it.

 

They should have said from the start we need a buyer, now.

 

I doubt very much anyone would buy us with the big tax case hanging over us. I think this is a huge wake up call, we're fucked

[chilledbear 16]

What is the reason they haven't cut the costs.

 

Surely to save the Club they could let players go and make the savings.

 

Yet they will not do it.

[BlueMazza 0]

Seems like the administrator have been fluffy with the facts all along. They said they did not believe there'd be a need to liquidate us, but didn't guarantee it.

 

They should have said from the start we need a buyer, now.

 

I doubt very much anyone would buy us with the big tax case hanging over us. I think this is a huge wake up call, we're fucked

 

They can't reach an agreement with the players though, so I assume they believed they COULD reach one, which would forestall liquidation. Without an agreement that sees us meet our financial commitments (a necessity in administration) this is their only other card.

 

Anyway, Fuck you Craig Whyte. Fuck you. Don't show your face again anyway near our club.

[BlueMazza 0]

What is the reason they haven't cut the costs.

 

Surely to save the Club they could let players go and make the savings.

 

Yet they will not do it.

 

Ah! Lightbulb moment!

 

Paul Murray said last week that NOT having players would be an issue for him, when buying the club did he not? I wonder if there are behind the scenes things in action, lots of statements made today which potentially accelerate things. Murray said he'd rather keep the players we have now, than have to buy in an entire team.

 

Also, players = assets in base terms.