Should We Be Wary Of Administrators

[Bluedell 5,356]

I actually assumed that GA was referring to paying people's wages (either in full or somewhat lower) till the end of the season, not any great bill or the like. How much money is stored somewhere is anyone's guess, of course.

 

I would think that the administrators are under an onbligation to cut costs where they can to:

 

1. make the club break even at least, something it is not currently doing (even if there is surplus cash around due to non-payment of billls), and

 

2. allow any surplus to be paid to creditors.

[GovanAllan 0]

Is whyte willing to sell? Even if he is, does that help the creditors? It seems far too early not to be taking action due to the remote possibility that a buyer can be found who will sort out all the creditors.

 

If there is enough money in the dodgy lawyers' account then why not come out of administration?

 

Doubt there's enough to pay the Paye/NI but must be enough to pay the wages. I would imagine coming out of Admin before a CVA is agreed just gets you back to Square1 again with all the monies still due.

 

Can the Admin team not sell the company and tell Whyte what he's getting if it means saving the company?

[der Berliner 3,290]

I would think that the administrators are under an onbligation to cut costs where they can to:

 

1. make the club break even at least, something it is not currently doing (even if there is surplus cash around due to non-payment of billls), and

 

2. allow any surplus to be paid to creditors.

 

Of that there is no doubt. Of course, ... a) if we have a 10m gap each season, letting half a dozen players go now ease that dent or loss-making only a little, especially if you take b) in mind that players who might be sold on for hard cash can hardly find a new club (that also suits them) outwith the transfer window. So while there sure is some obligations to be fulfilled, isn't it also possible to have some sort of agreement between the actual creditors and the administrators? As in ... if the former don't want their cash back as pronto as normally might be the case for your average company (for various reasons, unwanted publicity springs to mind), would the latter hasten to any action?

[Zappa 0]

Doubt there's enough to pay the Paye/NI but must be enough to pay the wages. I would imagine coming out of Admin before a CVA is agreed just gets you back to Square1 again with all the monies still due.

 

Can the Admin team not sell the company and tell Whyte what he's getting if it means saving the company?

 

Yes, the administrators can sell the company. If they sell it and bring us out of administration without exiting via a CVA it's possible that we could be hit with a further points deduction, although there isn't a precedent for this yet in the SPL, so the SPL would be setting a new precedent based on what's been given to English clubs such as Leeds who were deducted 10 points for entering administration and a further 15 points for exiting admin' 2 months later without doing so via a CVA.

[capstans 0]

As i understand it the administrators can make ANY decision they feel is in the best interests of club and creditors, any creditor disagreeing couls of course object unless bound by a CVA.

[chilledbear 16]

Frankie has just tweeted this

 

Collyer Bristow reiterate they are not obstructing access to administrators & Ticketus funds...up to £6 million believed held

 

Does this mean the Admistrators can access these funds and use them for running the Club?

[Calgacus 8]

but who is their client and who are they holding the money for? If it is the Club then the administrators will be able to access it, since they now run the club. If it is one of Whyte's other companies, then they either need instructions from that company or a court order, before they can release it. They don't have a choice.

[bluebear54 0]

I think the issue is about Companies. It's only us that is in administration.

Pretty sure the Collyer Bristow money will be another of CW's companies.

[Zappa 0]

One thing that makes me wonder about the length of time the adminstrators are taking is that the longer we're in administration, the more money they make and the weekly bill for their services will be a significant amount of money. I'm not directly accusing them of being in go-slow mode to line their own pockets, but it's certainly food for thought.

[pete 2,499]

Frankie has just tweeted this

 

Collyer Bristow reiterate they are not obstructing access to administrators & Ticketus funds...up to £6 million believed held

 

Does this mean the Admistrators can access these funds and use them for running the Club?

 

I would imagine it depends who put the money in. If it was Rangers then I believe the administrators could get it out but if it is in the name of one of Whyte's other companies then they will have no access. Whyte seems to have everything tied up nicely so I suspect the second.