der Berliner 3,357 Posted February 7, 2012 Share Posted February 7, 2012 Page 6 of the circular tells about that. In many ways, people who debate about Whyte and his intentions should read this before e.g. asking the 20m question time and again. 1. The Agreement, together with a separate side letter between The Rangers FC Group and theClub, contains a number of undertakings in relation to The Rangers FC Group's commitment to the Club and these are expressed to be enforceable by both the Club and the Vendor. The principal undertakings may be summarised as follows: (a) if the Club has not suffered an insolvency event within 90 days of the Club's appeal in relation to the tax claim brought against the Club by HM Revenue & Customs (the "Tax Case") being finally determined, then The Rangers FC Group will either waive the debt that it has acquired or convert it into equity by way of an issue of new voting ordinary shares in the Club. The acquisition of the debt by The Rangers FC Group is described further at paragraph 2 below. However, The Rangers FC Group has separately undertaken to the Club that it will waive the debt that it has acquired and not exercise its option to convert it into equity as provided for in the Agreement; (b) The Rangers FC Group has undertaken to provide £5,000,000 for investment in the playing squad; © The Rangers FC Group has stated its intention to invest, or procure an investment of, £20 million by 2016 for investment in the playing squad. If, as part of any player acquisition, the Club agrees to make a transfer payment in a future year before 2016, The Rangers FC Group will be obliged to invest cash to cover such transfer payment, up to £5 million per year; such amounts coming out of the £20 million investment that The Rangers FC Group has stated its intention to invest; (d) The Rangers FC Group has undertaken to provide or procure the provision of up to £5,000,000 of additional working capital facilities to the Club; (e) The Rangers FC Group is to contribute to the Club the amount required to meet a liability owed by the Club to HM Revenue & Customs in relation to a discounted option scheme tax; (f) The Rangers FC Group is to provide £1.7 million to the Club to fund capital expenditure in relation to improving kitchen and public address equipment at the stadium and meeting other necessary or reasonable capital expenditure required in the ordinary course; (g) The Rangers FC Group undertakes that, until the debt has been waived, the Club will not be required to lend money to The Rangers FC Group or grant security in respect of The Rangers FC Group's borrowings unless the borrowing (and the granting of the security in relation to it) is principally for the Club's benefit; and (h) a breach of any of the undertakings given by The Rangers FC Group in the Agreement will result in the debt acquired being automatically extinguished. The terms on which the debt would be extinguished are to be agreed by the parties at the relevant time. 2. Until such time as the debt acquired by The Rangers FC Group is either waived or converted into equity, if the Club suffers an insolvency event or is unable to pay its debts as they fall, the debt acquired by The Rangers FC Group shall be deemed to be increased by an amount equal to the amounts contributed by The Rangers FC Group as set out in paragraphs 1 (b), (e) and (f) above. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,200 Posted February 7, 2012 Share Posted February 7, 2012 The problem is, I think people assumed the investment in (b), ©, (d) and (f) would not come from mortgaging season tickets and catering contracts but come from the Rangers Group itself. 0 Quote Link to post Share on other sites More sharing options...
Tannochsidebear 2,322 Posted February 7, 2012 Share Posted February 7, 2012 Why oh why must the old Board continue to keep on with the mudslinging against Whyte. My educated guess is that it is Paul Murray who is giving Traynob sight of "management accounts to April", and info re ticketus etc in his continued effort to undermine Whyte and regain control of Rangers post-admin for a cheap price. The very man who claimed to have a £25M plan to buy the club after 4 years on the board and just days before the Whyte deal, which remember had dragged on for months, had been completed. Can he really be any more believable or genuine than the current or previous custodian? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,376 Posted February 7, 2012 Share Posted February 7, 2012 The problem is, I think people assumed the investment in (b), ©, (d) and (f) would not come from mortgaging season tickets and catering contracts but come from the Rangers Group itself. Exactly. The fact that a director of the club has used the future income streams of the club to obtain funding does not, in my book, mean that Group has supplied the funding. Hopefully Whyte is not going down that route. Whyte has said in the circular that Group would provide £15m. We also have received £24m from Ticketus plus £15m season ticket money and people think that we shouldn't be asking why we only have under £9m at the end of June. Hopefully the meetings that Whyte has had with RSA/RST and VB will reveal this but I'm concerned that they didn't ask the correct questions. The fact that Traynor, King, the BBC, Paul Murray are slinging mud should not hide the fact that the accounts seem, on the face of it, to have a multi million hole in them when it comes to our cash balance. 0 Quote Link to post Share on other sites More sharing options...
GovanAllan 0 Posted February 7, 2012 Share Posted February 7, 2012 Exactly. The fact that a director of the club has used the future income streams of the club to obtain funding does not, in my book, mean that Group has supplied the funding. Hopefully Whyte is not going down that route. Whyte has said in the circular that Group would provide £15m. We also have received £24m from Ticketus plus £15m season ticket money and people think that we shouldn't be asking why we only have under £9m at the end of June. Hopefully the meetings that Whyte has had with RSA/RST and VB will reveal this but I'm concerned that they didn't ask the correct questions. The fact that Traynor, King, the BBC, Paul Murray are slinging mud should not hide the fact that the accounts sLeem, on the face of it, to have a multi million hole in them when it comes to our cash balance. Unless I'm reading it all wrong and I probably am Rangers group has underwritten all the loans from ticketus. So he has done what he stated in the circular. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,376 Posted February 7, 2012 Share Posted February 7, 2012 Unless I'm reading it all wrong and I probably am Rangers group has underwritten all the loans from ticketus. So he has done what he stated in the circular. I don't think that he has said that Group has underwritten the loans and if they have the only assets that group has are cash due from us, secured on our assets, so iin what way has Group secured funding. It does not have the right to sell off our future income. Only the club itself can do that. What you have said may end up being Whyte's argument, but it totally fails to meet the obligations of the circular, in my opinion. 0 Quote Link to post Share on other sites More sharing options...
GovanAllan 0 Posted February 7, 2012 Share Posted February 7, 2012 I don't think that he has said that Group has underwritten the loans and if they have the only assets that group has are cash due from us, secured on our assets, so iin what way has Group secured funding. It does not have the right to sell off our future income. Only the club itself can do that. What you have said may end up being Whyte's argument, but it totally fails to meet the obligations of the circular, in my opinion. I agree BD but that's what he will state he meant, the club sold the tickets and the group will cover the clubs ass if the ticket levels drop off. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,376 Posted February 7, 2012 Share Posted February 7, 2012 I agree BD but that's what he will state he meant, the club sold the tickets and the group will cover the clubs ass if the ticket levels drop off. If he does take that argument then he will instantly lose the trust of a huge section of the support and we will be in the situation where we have an owner who is no better than Murray. 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,357 Posted February 7, 2012 Share Posted February 7, 2012 Whyte recently stated that we shell out some 3.5m per month to run the club. We have no bank doing this, nor any other facility, mainly due to the HMRC thing. Thus we need to be inventive. As has been said time and again, we signed and dealed 14 players in over the course of Whyte's reign too, with only two (Bougherra & Jelavic) bringing in any substantial amounts of money. These people and their agents all have to get paid, repair stuff at Ibrox to be done and whatnot. Contractors too want their cash now, bills being paid instantly ... because of the HMRC thing. And, as I said before, I do assume that Whyte has an account where he stores a certain sum to pay a small bill from the large case. Hence, all what I read of him in recent weeks makes a certain amount of sense. It is not exactly satisfying a state, but it makes sense. Will you get more answers from Whyte? Nope. For certain stuff is confidential ... at every company on this planet. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,376 Posted February 7, 2012 Share Posted February 7, 2012 Hence, all what I read of him in recent weeks makes a certain amount of sense. It is not exactly satisfying a state, but it makes sense. I don't think it does make sense. OK let's look at creditors. We have £60m in the accounts at 30th June. We should have: Season ticket deferred income £15m Due to Group for clearing o/d £18m Small tax case £3m Capital grants £8m Social security £3m JJB deferred income £7m Totals £54m. £6m out, but I haven't accounted for standard accruals, trade creditors, balances owed on players etc. So where is the Ticketus creditor of £24m? The figures just don't appear to stack up. 0 Quote Link to post Share on other sites More sharing options...
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