So let's get this straight

[Bluedell 5,366]

Bluedell, this has gone way over my head now so are you able to advise on the following.

 

1) How can the assets just be transferred to a newco? What about Craig Whyte and his shares?

2) How can players be transferred and what about their registrations?

3) What happens if a CVA can't be agreed?

 

It seems to me that if this was a way to get out of administration and avoid liquidation then every company in trouble could do this? I'm really struggling with this.

 

The administrators have the power to sell the assets, and in this case the trade and assets to get a return for the creditors. Whyte does not have the power to prevent it.

 

I'm unclear about the players and their registrations. I'm hoping that they can be transferred easily but I'm not sure and there will be plenty of barriers put up by the likes of Regan and Lawwell.

 

I think that the administrators can sell the club anyway, if they believe that it's the most that they can get for it. If the creditors don't accept it, then what else can they do? There isn't money lesewhere.

 

Why can't every company do it? It's not been easy. we have suffered 10 point deduction, the players losing wages, potenially not being able to sign players etc. We have a couple of parties interested in us, many other clubs would not and may just fold. there's still no guarantee that we are out of the woods yet and I was getting a bit emotional last night at the thought that it may have been may last time in my seat.

[caseyjones 0]

The bit I wasn't sure about is the administrator powers to do this. It must mean that they think that the quantum achieved from Miller is greater and more expedient than selling off assets in a liquidation sale.

 

To be honest, if we get the original company back from Whyte, it all seems a bit too easy... What is to stop companies doing this all the time? Or will Whyte be punished by not being able to be a director for a while?

 

It does seem that Whyte still has some leverage for a pay-off; however, he risks getting nothing so he has to be flexible.

 

I'm still wondering about his situation with Ticketus and also the missing millions. And I wonder how much he has snaffled away.

 

Sounds to me like Ticketus are at the moment only out about £16m (due to the repayment of £8m by the club) and could possibly get say £6m in the CVA leaving them maybe £10m down. You can see why they wanted in with the BKs as they'd maybe be about £6m better off plus making quite a bit more than that with the loan deal.

 

I can't see how Ticketus can get £6m in a CVA when Miller is only putting in £11m in total.

[caseyjones 0]

The administrators have the power to sell the assets, and in this case the trade and assets to get a return for the creditors. Whyte does not have the power to prevent it.

 

I'm unclear about the players and their registrations. I'm hoping that they can be transferred easily but I'm not sure and there will be plenty of barriers put up by the likes of Regan and Lawwell.

 

I think that the administrators can sell the club anyway, if they believe that it's the most that they can get for it. If the creditors don't accept it, then what else can they do? There isn't money lesewhere.

 

Why can't every company do it? It's not been easy. we have suffered 10 point deduction, the players losing wages, potenially not being able to sign players etc. We have a couple of parties interested in us, many other clubs would not and may just fold. there's still no guarantee that we are out of the woods yet and I was getting a bit emotional last night at the thought that it may have been may last time in my seat.

 

Wishart has already stated that the players can leave in the event of a newco.

[aweebluesoandso 290]

I can't see how Ticketus can get £6m in a CVA when Miller is only putting in £11m in total.

 

I think our 'patsy' has finally been revealed?

[caseyjones 0]

I think our 'patsy' has finally been revealed?

 

Eh? You've lost me, mate.

[aweebluesoandso 290]

Eh? You've lost me, mate.

 

Ticketus was Whyte's patsy, it looks like they are going to take a massive hit on the CVA?

[Zappa 0]

1) How can the assets just be transferred to a newco?

 

Here's a couple of relevant sections from the Insolvency Act -

 

General duties

 

67

 

The administrator of a company shall on his appointment take custody or control of all the property to which he thinks the company is entitled.

 

Charged property: floating charge

 

70

 

(1)The administrator of a company may dispose of or take action relating to property which is subject to a floating charge as if it were not subject to the charge.

 

(2)Where property is disposed of in reliance on sub-paragraph (1) the holder of the floating charge shall have the same priority in respect of acquired property as he had in respect of the property disposed of.

 

(3)In sub-paragraph (2) â??acquired propertyâ? means property of the company which directly or indirectly represents the property disposed of.

 

http://www.legislation.gov.uk/ukpga/1986/45/schedule/B1

[caseyjones 0]

Ticketus was Whyte's patsy, it looks like they are going to take a massive hit on the CVA?

 

Got you now.

[Zappa 0]

Wishart has already stated that the players can leave in the event of a newco.

 

I think he said that they don't have any obligation to accept that their contracts are transferred to a newco, so yes, they could no doubt leave if they wished. It'll all come down to which players decide they want to leave, but I think a fair number of them will want to stay. Some have stated this week that they'd like to stay. We'll just have to wait and see.

[caseyjones 0]

Here's a couple of relevant sections from the Insolvency Act -

 

 

 

 

 

http://www.legislation.gov.uk/ukpga/1986/45/schedule/B1

 

To do so, don't the administrators have to use the creditor's pot to pay back the value of the floating charge.