Are Lloyds trying to sell Rangers.. or wind them down?

[Stefanovitch 0]

The latest from Traynor with a nice little dig at the end:

 

http://blogs.dailyrecord.co.uk/jimtraynor/2011/03/are-lloyds-trying-to-sell-rang.html

 

TIME is almost up. Rangers' bankers may have only a matter of days left to conclude a deal with Craig Whyte, the man who wants to buy Rangers.

 

 

It is understood his people have managed to secure an arrangement with David Murray for the purchase and transfer of his shares but the bank have still to give the go-ahead.

Strangest thing that. Here we have someone willing to clear a company's debt and a bank, which had to be bailed out by us, the tax payers, apparently slow to accept. Surely it is better to get the money back quickly instead of reclaiming it at a rate of something like �£2million a year? Also, with the possibility of Rangers being hit with a massive bill from HMRC a distinct and serious threat, you'd think it would make absolute sense for Lloyds to get their money in full before the tax man starts hammering on the Ibrox front door demanding payment.

And what if Rangers are dragged into what would be their Doomsday Scenario? What if the tax case is lost, the penalties are severe and administration becomes the reality?

Lloyds would never get their money in full then and Whyte, or someone else, could pick the club up for a bargain price without having to pay anything like the full debt.

Yet nothing continues to happen and Whyte is now very close to saying enough is enough. Make no mistake, he will walk away from this. And soon. Maybe even by the end of this week.

But he and every other Rangers fan is entitled to wonder why Lloyds haven't reached out and grabbed his money, especially when they must be satisfied he can pay.

Many still insist he doesn't have the wherewithal but Lloyds can't be included among the sceptics because Whyte wouldn't have been allowed to access the more sensitive club documents, those detailing wages and bonuses, if there had been any doubt about his ability to come up with the readies.

He has shown proof of funding, due diligence was completed a long time ago and, despite fears that all kinds of hidden debts might be uncovered, Whyte found nothing that made him want to run away.

He even appears comfortable with arrangements to deal with the potential tax liability. He has also picked Walter Smith's brain about exactly how much needs to be spent on rebuilding Rangers' squad and remains willing to take the keys to Ibrox.

But instead of trying to get a deal done as quickly as possible, Lloyds keep him waiting. Why? Do they want to do a deal to be rid of Rangers or are they happy to impose a repayment plan that is actually winding the club down? There are already fears within Ibrox that the wage bill will have to be slashed again but this time by as much as �£2m, bringing it under �£15m. Also, there are even greater concerns that because general maintenance has been neglected at Ibrox due to cutbacks it could cost upwards of �£12m to reverse the decline. It is already being whispered health and safety could become a serious issue. Why would Lloyds wish to be linked to the decline of a team and a stadium when someone is offering them and Rangers a way out?

No one is arguing they are not entitled to their money and Rangers must not be considered different from any of us. We and they have to pay debts yet Lloyds haven't turned to Whyte and demanded the money.

Perhaps they're asking for too much. The price was �£33m but that was when Rangers' debt was around �£27m and right now it stands at just under �£20m, so Whyte would be mad not to suggest costs be reduced accordingly, especially with so much needing to be spent on the squad and stadium.

It really is the strangest thing because even though Lloyds appear to be satisfied Whyte can pay, they haven't struck a deal and run the risk of letting the only person willing to take on Rangers walk.

And, of course, the longer he is kept waiting the more time he has to come to his senses.

God only knows why anyone would want to buy a football club anywhere in this harsh financial climate and it could be argued that anyone trying to buy a Scottish outfit shouldn't be allowed out of his padded room unaccompanied.

Money seized from criminals will be given to the League Cup and the SFA have just announced they'll benefit from a new �£50m telly deal but don't be fooled. The game here is broke.

Yet this man Whyte wants to risk his millions. He must see something the rest of us have missed but so far he hasn't seen the piece of paper that would give him control and now he, along with every other Rangers fan, is entitled to ask why the bank seem reluctant to get the club off their books.

Whether they like it or not and even though they may have attempted some kind of charm offensive in recent weeks, the general perception is they are holding up progress.

All Rangers fans can do is wait and hope. Then again, instead of gleefully tainting their message boards with the most awful kinds of venom they might want to ask more questions of Lloyds.

However, if those bigots among Rangers' fans, who continue to hurt and shame our country, refuse to be silenced, others will start asking more pertinent questions. In fact, SFA chief executive Stewart Regan has already started.

He's spoken about the ultimate sanction - forcing Rangers to play behind closed doors.

What chance then of Lloyds finding a buyer?

[Frankie 8,146]

Fair enough article but why bring bigotry into this subject...

[Stefanovitch 0]

Can't resist a little kick at a wounded animal

[maineflyer 0]

I'm guess that if the deal does fail because of Lloyds intransigence, Whyte will be keen to expose this after the (non) event. On the other hand, what businessman is willing to alienate himself from the banking community? The mess we're in is almost too awful to think about.

[pete 2,499]

The only thing I can think of that they may be holding off for. is to try and get money back for the MIH debt via Rangers otherwise I have no idea what they are playing at.

[CumbernauldGers 0]

Dodgy Dave will not sell us unless we force him.

[Frankie 8,146]

I emailed their media office earlier as if the Record story is false, I'm sure they'll be eager to refute the allegations:

 

ross.keany@lloydsbanking.com

 

Dear Mr Keany,

 

I address this to you because of your position detailed on the LSB website.

 

Given the coverage in today's Daily Record (28/03/2011) where their Sports Editor infers your group are deliberately holding back the sale of Rangers FC, can you please afford Rangers supporters some official comment on this story.

 

At last year's LBG AGM, Archie Kane was quite specific in his statements about the club. He was widely quoted as saying the following:

 

"The bank fully understands level of concern of supporters, shareholders and the football community at large.

 

"We understand Rangers' importance. I can tell you we are supportive towards the management of Rangers in their endeavours to try to resolve the future of the club and, along those lines, we will be meeting on Monday morning with the chairman and chief executive of Rangers Football Club.

 

"I hope that gives you some reassurance that the bank is committed and is supportive of the board and the management of Rangers FC in their endeavours to establish the financial stability of the club and to resolve the future of the club and for the club to be a success."

 

Can you please confirm this is still the case and if so, why the Daily Record (amongst other media) are suggesting the opposite is true?

 

Rangers FC have had a very successful year (on and off the pitch) so it disappoints me to read allegations that the bank are likely to reduce funding further by increasing their demands with respect to a loan agreed several years ago. This doesn't seem to tally with official bank comment to your shareholders which is rather worrying.

 

I look forward to your reply.

 

Yours sincerely,

Frankie

 

Edited March 28, 2011 by Frankie

[pete 2,499]

I hope you get a reply Frankie but don't hold your breath until you get one.

[ian1964 10,409]

Crucial week for Gers takeover

Sun, 27 Mar 21:32:45 2011

 

Craig Whyte's protracted bid to take over Rangers enters a critical stage in the coming week with Lloyds Bank believed to be the main stumbling block to the deal being concluded.

 

The �£33million bid will see the Scottish tycoon take over 75% of Sir David Murray's shareholding, with London-based property developer Andrew Ellis becoming a 25% partner.

 

However, Press Association Sport understands that the bank's desire for an 'exit payment' of more than �£1million is one of the key stumbling blocks. Moreover, the severity of the cuts that the bank want to impose on the club for the start of next season is "unsustainable", according to a source close to the deal.Those issues are sure to anger the Light Blues' supporters, who are expected to be told this week when figures are released that the club's debt has been slashed to around �£21million from the �£27.1million figure announced in June.

 

Talks will continue this week but Whyte is desperate for the deal to be done by Thursday, with the following day, April 1, being ruled out.

 

London-based Whyte appeared to be on course to complete a buyout when he reached an agreement in principle with majority shareholder Murray in early December, but various reported deadlines have come and gone.

 

Whyte had confirmed to the Stock Exchange in November he was considering making an offer for Rangers and was in talks with Murray International Holdings.

 

He then held talks with Murray and Rangers chairman Alastair Johnston last year but there is real frustration in the Whyte camp that the deal is still not done.

 

The takeover plans include vows to wipe out the debt and invest �£25million in the team over a five-year period.

 

http://uk.eurosport.yahoo.com/27032011/63/crucial-week-gers-takeover.html

[Frankie 8,146]

I hope you get a reply Frankie but don't hold your breath until you get one.

 

Of course I don't expect them to discuss the issue in depth but given there has been almost a year since Kane's comments at their AGM and Traynor has been quite specific in his allegations to the contrary, this gives them a chance to confirm or deny.

 

Obviously, a more relevant place for such an enquiry will be at their 2011 AGM which will be held in the next couple of months in Edinburgh. It would be useful if more than one Rangers fan turned up this time and made a point of asking suitable questions (or even protest if that was agreeable). Problem is, Mr Whyte may be long gone by then...