Concerns

[Juancornetto 1]

 

 

â??If a club sets up a new company simply to avoid paying its debts or obligations then they would almost certainly fail the three-year rule [for obtaining the required Uefa licence],â? a spokesperson for Uefa told The Scotsman.

 

â??This is to ensure clubs do not simply create a â??newcoâ?? and leave the previous entity in charge of dealing with debts.â?

 

 

This tells us that what BM is planning isn't a new thing and UEFA are very much aware of incubator newco's and hybrid liquidation.

[Darthter 542]

I don't believe the Euro ban, if it comes into play, will be a problem.

 

As someone pointed out on another thread, we were playing in Europe (technically) this season - what did we get out of it??? I can't see the team being strengthened for the forthcoming season, especially if the SFA transfer embargo is upheld. Therefore IF we were in Europe, I couldn't see us doing too well. There's one season out of the 3 written of already. Then there are no guarantees that we'd do much in the other 2 season.

 

I'm of the opinion that the break from Europe & the transfer embargo MAY work in our favour!!! It will allow Mr Miller (if ultimately successful) to do what he needs to do financially with out the distractions and added pressure of signing players & competing in Europe. As others have said, we need to be financially stable without ANY European money, the possible 3 year ban allows Mr Miller to do that!!!

[caseyjones 0]

BTW, are we not all still quite confused about what will actually happen? Has Rangers FC plc been lqiudiated? Will it ever be liquidated? If not, can Rangers FC not just work along with two companies behind it ... like our friends from beyond the Clyde? Wouldn't it be good to see how MIller's plans actually work out before getting into crisis mode?

 

UEFA introduced these new laws to make it more difficult for clubs to shed their debts et al in simple ways. Will they have to say something about the Spanish and Italian teams carrying billions of debts about ... and the countries actually thinking of cutting these debts while being in a state of financial disarray themselves? Wouldn't that be essentially newco-ing these clubs by another name?

 

Let the Italians and the Spanish worry about themselves. For most of us, it's the future of The Rangers that is of concern.

[GovanAllan 0]

Juancornetto

 

I am here to ask questions about the guy who has taken over. Is he our only hope? It seems so. That does not mean we cant question him. I did not mean to patronise the whole forum.

 

You haven't ask any questions about Miller you've only flung the UEFA rule book in our face to say that he can't do this and he can't do that.

[Brianb 0]

Well since we need to follow the Uefa rulebook it is probably important to know the ins and outs of it. Just saying.

[Darthter 542]

Re the point that a CVA will be agreed and the companies will merge if this was to happen it is crazy to think it will do in the next month. TBK were told just yesterday that a CVA was not deliverable.

 

That is most likely down to the structure of the BK's bid - they simply weren't offering enough to the creditors to make a CVA viable. The structure of Millers bid is completely different, and therefore the possibility of a CVA is very likely ie. there is no option to sell assets to raise more than the CVA offers - becase there are no assets to sell!!!

[Brianb 0]

This makes a CVA even less likely

[Frankie 8,151]

Taking away the newco/liquidation aspects, the biggest concern for me is funding.

 

We're led to believe he has around $25million liquidity in hand due to selling various share interests he has. Fair enough, that will buy the club but where is the money for the club going forward?

 

Also, who is going to provide the usual overdraft facility and how does he expect us to be competitive in the likely event of 3+ years without European football.

[Brianb 0]

Frankie

 

Spot on.

 

This is not going to end well. I hope I am wrong.

 

There is a chance that he may not even buy the club. Being proffered bidder is a long way from buying the club.

 

I hope am I wrong about all this. Hopefully in the end you will all laugh at me and call me an old senile fool.

 

I would drink to that.

[Darthter 542]

This makes a CVA even less likely

 

Why???

 

Via the BK's bid, the creditors could take the view that they would receive more cash by selling the assets ie. forced liquidation.

With Mr Miller's bid, the current company has no assets, but £11m sitting in the bank for the creditors. If they force liquidation, they will still only get a cut of £11m - so nothing to gain.