Quick Sale Vital and no Europe next season - Administrator statements

[Darthter 542]

You can't BOTH be wrong.

 

wana bet...

[der Berliner 3,815]

Coming to think of it, they may just want to speed proceedings of the sale so they can have the paperwork ready by March 29th. There you have it, plain and simple!

[Zappa 0]

Another statement from the administrators tonight -

 

.

 

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."

[der Berliner 3,815]

So no European football nor liquidation for the time being. "Just" cost cutting starting in earnest if involved parties don't move. As I intimated above.

[54andcounting 0]

We haven't exactly set the world on fire regards our European performances of late...what is our record? 1 win in our last 25?

[Guest blueswede]

This has now gone waaay beyond worrying.

It's like Doomsday is soon here !!!- so heart breaking for all bluenoses.

[calscot 0]

Have they tried the possibility of selling Ibrox and MP and leasing back? Wouldn't be popular but that's usually a last ditch manoeuvre that can save a company from liquidation.

[Zappa 0]

Have they tried the possibility of selling Ibrox and MP and leasing back?

 

Do they even know who OWNS Ibrox and MP???

 

Paul Murray said on Talksport today that he believed the administrators were still in the process of investigating the ownership and whether or not Whyte is the major creditor. Not in those words, but that was the jist IIRC.

 

If the administrators don't know who OWNS the club, how the hell can they sell it??

[chilledbear 16]

I don't understand who would buy the club without an agreement with the creditors.

 

HMRC bill to come small and large, Whyte, Ticketus.

 

And still the £1m a month to find to break even.

 

Some of the top earners will have to go if not agreeing reduction in their wages, even if someone comes in.

[forlanssister 3,114]

Have they tried the possibility of selling Ibrox and MP and leasing back? Wouldn't be popular but that's usually a last ditch manoeuvre that can save a company from liquidation.

 

Whyte holds the floating charge on the RFC assets and Close Leasing hold a fixed charge, would those not have to be satisfied before assets can be sold?