forlanssister 3,114 Posted April 3, 2012 Share Posted April 3, 2012 Ah well since the news has well and truly broken here's the deal: Reduction of capital sum from £27m to £10m 9 years to repay interest free 2 year payment holiday No payment in any year we fail to qualify for Europe Ticketus to provide £10m working capital Ticketus will not sue RFC for monies resulting from the contract Whyte signed. Removes a potential £27m from the CVA pot allowing a better return for the other outstanding creditors. I think that's a pretty stunning deal 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted April 3, 2012 Share Posted April 3, 2012 Ticketus to provide £10m working capital What are the terms and potential overall costs to RFC of them providing that? 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,114 Posted April 3, 2012 Share Posted April 3, 2012 What are the terms and potential overall costs to RFC of them providing that? Not entirely sure, I assume that it means some kind of overdraft facility (since we'd still have difficulties obtaining full service banking) I don't expect the terms of that to be onerous considering the other facets of the deal, I would expect it to be base rate + fixed percentage rate (though I don't know for sure yet). 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted April 3, 2012 Share Posted April 3, 2012 Not entirely sure, I assume that it means some kind of overdraft facility (since we'd still have difficulties obtaining full service banking) I don't expect the terms of that to be onerous considering the other facets of the deal, I would expect it to be base rate + fixed percentage rate (though I don't know for sure yet). It would be interesting to know the details because Ticketus seem to be able to buy tickets at just over half of the ticket value. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted April 3, 2012 Share Posted April 3, 2012 Ah well since the news has well and truly broken here's the deal: Reduction of capital sum from £27m to £10m 9 years to repay interest free 2 year payment holiday No payment in any year we fail to qualify for Europe Ticketus to provide £10m working capital Ticketus will not sue RFC for monies resulting from the contract Whyte signed. Removes a potential £27m from the CVA pot allowing a better return for the other outstanding creditors. I think that's a pretty stunning deal If true I would consider that a tremendous deal brokered by TBK's. Would certainly make their bid the obvious one, on the face of it. Would still be interested in finding out just what the BK's are actually putting into the deal themselves. Again using Ticketus money for working capital, nothing wrong with that per se, would just be nice if they actually also put up some working capital themselves too. 0 Quote Link to post Share on other sites More sharing options...
Bears 0 Posted April 3, 2012 Share Posted April 3, 2012 (edited) Ah well since the news has well and truly broken here's the deal: Reduction of capital sum from £27m to £10m 9 years to repay interest free 2 year payment holiday No payment in any year we fail to qualify for Europe Ticketus to provide £10m working capital Ticketus will not sue RFC for monies resulting from the contract Whyte signed. Removes a potential £27m from the CVA pot allowing a better return for the other outstanding creditors. I think that's a pretty stunning deal Looks great, but a better deal can be made through other means Edited April 3, 2012 by Bears 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,679 Posted April 3, 2012 Share Posted April 3, 2012 (edited) Ah well since the news has well and truly broken here's the deal: Reduction of capital sum from £27m to £10m 9 years to repay interest free 2 year payment holiday No payment in any year we fail to qualify for Europe Ticketus to provide £10m working capital Ticketus will not sue RFC for monies resulting from the contract Whyte signed. Removes a potential £27m from the CVA pot allowing a better return for the other outstanding creditors. I think that's a pretty stunning deal So we cold get rid of them now through a CVA or they can take £10m of fans' money post CVA. Presumably the same amount of money will be available in a CVA so we just pay everyone else a little more and Ticketus take cash from us after. We still have to make a repayment to them, even if we get knocked out in the first round of Europe. Let's say that the saverangers £15m is realised in a share issue. That means that 2/3 of the cash raised from the fans will ultimately end up in the pockets of Ticketus. Excuse me if I'm not too enthusiastic about the deal with the company that must have known what Whyte was up to when they advanced him the cash pre-takeover. Edited April 3, 2012 by Bluedell 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,679 Posted April 3, 2012 Share Posted April 3, 2012 (edited) What rate of interest is payable on the £10m working capital? Over what period is it repayable? What security will they be granted? Edited April 3, 2012 by Bluedell 0 Quote Link to post Share on other sites More sharing options...
Bears 0 Posted April 3, 2012 Share Posted April 3, 2012 https://twitter.com/#!/DavidHillier Who' a financial expert has tweeted this about the deal. maybe it's not as good as it sounds this isn't necessarily good for RFC. Ticketus will get 37% of monies owed with PM, compared to 5-10% in CVA. 0 Quote Link to post Share on other sites More sharing options...
chilledbear 16 Posted April 3, 2012 Share Posted April 3, 2012 Re: Ticketus debt smashed by £17m in stunning Paul Murray deal -------------------------------------------------------------------------------- Rangers in crisis: Blue Knights takeover bid worth £17m to Ibrox club as Paul Murray strikes deal with Ticketus PAUL MURRAYâ??S rescue plan for Rangers will see Ticketus slash a massive £17million off the bill from the notorious deal which funded Craig Whyteâ??s takeover. Record Sport can reveal the London firm yesterday signed off on the details of the proposed partnership with Murrayâ??s Blue Knights who will tomorrow table their bid to save the club from Whyteâ??s clutches. The agreement means if Murray and his group are handed the keys to Ibrox, Ticketus will agree to rip up the infamous contract that saw them hand Whyte £24.4m to buy huge chunks of future season-ticket sales. We can reveal the overall debt due to Ticketus as a result of their tie-in with Whyte now stands at £27m. But, following some intense negotiations with former director Murray, Ticketus are now willing to accept clawing just £10m back from the most damaging deal in Rangersâ?? 140-year history. And they will allow Murray to pay it back, on an interest free basis, over the next NINE years. The news will strengthen Murrayâ??s bid to win control of the SPL champions and drag them away from the brink of extinction. It will also go a long way towards allaying the fears of fans who were initially shocked to hear his plans to link up with the very firm that bankrolled Whyteâ??s regime. And Murray believes it provides cast-iron proof there is no need for the club to be plunged even deeper into financial crisis. A rival bid from Chicago, involving Club 9 Sports, is also expected to be tabled tomorrow but itâ??s believed the Americans favour liquidating the Ibrox outfit and starting up again as a new company with a clean slate. But Murray is determined to protect Rangersâ?? history and last night, speaking exclusively to Record Sport, he said: â??This deal makes delivering a CVA a great deal easier and shows there is no need for Rangers Football Club to be placed in any further danger. â??It brings the debt to Ticketus down to a level that the club can properly service without being hamstrung by the terms of the deal struck by Craig Whyte. â??These numbers alone show there is no need for the club to be placed into liquidation. But letâ??s be honest here, why on earth are we even discussing liquidation when we are dealing with a club that can bring in more than 47,000 fans to watch a legends game.â? Whyteâ??s original deal left the club facing massive instalments every summer, which would have wiped out up to 60 per cent of all cash raised from season-ticket sales over the next three years. A ruling at the court of session declared that while Whyteâ??s deal could not legally be dismissed as null and void the £27m of Ticketus debt makes the firm the clubâ??s largest unsecured creditor. Murrayâ??s plan is to remove them from any CVA pot and offer a higher pence in the pound deal to HMRC in the hope of doing a deal to save the club from liquidation. And now he has successfully persuaded Ticketus to relax the crippling terms and conditions of their deal with Whyte. The restructured agreement will also mean Rangers have nothing to pay for the first two years of the Blue Knightsâ?? regime. And, even then, Ticketus will only be paid back in dribs and drabs when the club have coined in extra revenue from qualifying for European competitions. Ticketus will also supply Murrayâ??s regime with a £10m loan to cover the clubâ??s runnings costs until they launch a share issue to bring fans on board. The money will allow Murray and his group to carry out talks with key first-team players with the aim of keeping most of Ally McCoistâ??s squad intact over the summer. The cash would be repaid in full from the money raised by putting the shares on the market and opening the club up to a form of fan ownership. Murray added: â??Our original aim was to get Ticketus on board so we could restructure the original deal and assist our efforts to secure a CVA. This deal does both. â??It is important we recognise the role of Ticketus. They have been demonised because of their part in the original deal with Whyte. â??But they have been supportive and professional. Clearly, they have an interest in making sure that Rangers survive but the concessions they have made have been painful for Ticketus and are in the best interests of the club. They have agreed to this to help Rangers survive and prosper. â??Not only are they prepared to write off very significant sums but they are also committed to putting more money into the club in the short term which would give us the ability, this coming summer, to carry out some essential activity in terms of the first-team squad. â??In effect, what Ticketus are prepared to do here is act like a â??supportive bankâ?? in order to help us stabilise the club. â??The deal reflects Ticketusâ?? position as an unsecured creditor and gives the club vital breathing space as Ticketus will not charge interest on the money and they will not expect any repayment for the first two years. â??Any repayments over the remaining seven years are based upon us having European participation. If we are not in Europe we wonâ??t be paying anything back. â??Itâ??s perfectly in line with the Blue Knightsâ?? business plan which is to have the club breaking even on domestic revenue alone. Any European income will be a bonus which can be reinvested in terms of transfer activity and so on.â? A consortium from Singapore has also been invited to bid for the club by administrators Duff and Phelps, who last week rejected an indicative bid from Sale Sharks owner Brian Kennedy, below. Kennedy and the Blue Knights have remained adamant the club can be saved without going into liquidation. And both camps are suspicious of the motives of the men from the Far East and North America. By the end of this week one of the interested parties is expected to be granted preferred bidder status and a two-week period of exclusivity to examine the full extent of the financial carnage Whyte left behind. 0 Quote Link to post Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.