Zappa 0 Posted May 12, 2012 Share Posted May 12, 2012 (edited) Right, firstly I need to say that I'm not a fan of the "newco" exit from our situation whatsoever, but sadly there's a very real possibility that it could happen, especially when you consider that Duff & Phelps have already went with Bill Miller as preferred bidder with a newco plan. What I want to ask you all is if you think the following variation on a basic newco plan could work, would it be legal etc. So... New owner sets up a newco and buys the property assets such as Ibrox and Murray Park for a cash sum which goes into the creditors pot. Those assets get transferred to the newco along with all non-playing staff and the youth teams. The "oldco" would then be left with the 1st team squad player registrations, the SPL share and the SFA membership. Everything else goes to the newco. Could that work? Would it be legal? Edited May 12, 2012 by Zappa 0 Quote Link to post Share on other sites More sharing options...
Tannochsidebear 2,322 Posted May 12, 2012 Share Posted May 12, 2012 That is essentially a sale and leaseback scenario Zappa, and is the sort of deal most fans would be absolutely furious with. 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted May 12, 2012 Author Share Posted May 12, 2012 That is essentially a sale and leaseback scenario Zappa, and is the sort of deal most fans would be absolutely furious with. The only reason I'm asking Tb, is because this is something that my brother keeps talking about, but I don't agree that it would be a good approach and I don't even know how it would stand legally. 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted May 12, 2012 Author Share Posted May 12, 2012 Btw, it wouldn't be a leaseback. If a CVA isn't achieved before the start of the season, then it would move to a pure newco. 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,061 Posted May 12, 2012 Share Posted May 12, 2012 Btw, it wouldn't be a leaseback. If a CVA isn't achieved before the start of the season, then it would move to a pure newco. If a CVA isn't achieved before the start of the season then the punishment would just be the bog standard 10 point deduction (?) then what is to be gained going newco rather than spending a few extra weeks/months in administration ergo avoiding potential newco sanctions (if in fact there are any save the UEFA 3 year exclusion)? 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted May 12, 2012 Author Share Posted May 12, 2012 If a CVA isn't achieved before the start of the season then the punishment would just be the bog standard 10 point deduction (?) then what is to be gained going newco rather than spending a few extra weeks/months in administration ergo avoiding potential newco sanctions (if in fact there are any save the UEFA 3 year exclusion)? The benefit that my brother is suggesting is that it could be a way to avoid SPL or SFA interference or sanctions over the closed season where those assets aren't required. It would also be an incentive to attempt and have a CVA accepted (before the start of the season) as the balance of the bid could be on that condition. 0 Quote Link to post Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.