Dave King Calls For Fans not to support CVA Deal

[North Rd 0]

HMRC arrange for liquidators at Rangers if administrators fail to save club

 

 

HM Revenue and Customs have arranged for liquidators to be appointed at Rangers should administrators fail to rescue the club.

 

The tax authorities agreed the plan with current administrators Duff and Phelps, it was revealed on Thursday.

 

Insolvency firm BDO have been lined up by HMRC should the current attempts to get the Ibrox club out of administration fail and they are put into liquidation.

 

The move was made by HMRC in April after Duff and Phelps produced their proposals to remain in post, which those owed money had to vote on.

 

On Thursday the administrators released the proposals approved by creditors, which originally asked them to rubber-stamp the appointment of Duff and Phelps as liquidators of Rangers should a proposed company voluntary arrangement (CVA) fail.

 

The result of the creditors vote in April has also given the administrators power to "conclude a sale of the whole, or part of the business, property or assets of the company" without needings creditors permission, should the proposed CVA be successful.

 

Now, should the CVA proposal funded by an £8.5m loan from the Sevco consortium led by Charles Green fail to receive the backing of creditors, the neutral insolvency firm would be called in.

 

This would be in the case of the compulsory court-ordered winding up of the crisis-hit club, or if a creditors voluntary liquidation (CVL) took place as part of a 'newco' switch.

 

According to documents released last week, in the event of the CVA failing, the consortium is "contractually obliged" to pay £5.5m for the "business and assets" of Rangers, which would be transferred to a completely different business entity, before the existing one is liquidated.

 

The details of the newco deal are "confidential" and it is unclear whether the money to fund it would also take the form of a loan with interest.

 

BDO and HMRC refused to comment on the agreement reached over the situation at the Glasgow club, which was plunged into administration on February 14 having failed to pay £14m in PAYE and VAT since Craig Whyte bought an 85% stake in the club in May 2011.

 

http://local.stv.tv/...l-to-save-club/

 

 

I don't like the sound of this, also Dave King has been talking to the BBC. More to follow on why he wants us to oppose the CVA later.

 

Quote

Alasdair Lamont ‏@BBCAlLamont

Dave King calls for Rangers fans to oppose Charles Green's CVA

[North Rd 0]

Alasdair Lamont ‏@BBCAlLamont

Dave King also says he's making a claim against club for the full amount of his investment, based on "deliberate non-disclosure by David...

 

Alasdair Lamont ‏@BBCAlLamont

...Murray of transactions that he had committed to on behalf of the club that were both risky and to the sole advantage of the Murray Group"

 

Alasdair Lamont ‏@BBCAlLamont

DK: "I also believe that all true Rangers fans should not buy any season tickets until full and frank disclosure...

 

Alasdair Lamont ‏@BBCAlLamont

... has been provided by Duff & Phelps, Mr Green, and Mr Whyte, as to what is truly going on behind the scenes."

[GovanAllan 0]

Away and f#*k yourself King as many times as you can manage.

[North Rd 0]

Typical BBC crap, can't say anything positive about us and since we are feeling a bit reassured from RFFF meeting with Green, they dig for more negativity.

[aweebluesoandso 290]

I would be pretty pissed off if someone screwed me for £200 never mind £20mil. But he should be chasing Murray not Green imo?

[forlanssister 3,050]

Full statement

 

 

NO GREEN AND WHYTE AT IBROX

 

I have continued to observe the lack of progress in the attempts to resolve the crisis at Ibrox. I hoped that a â??supportableâ? proposal would emerge from an individual or grouping that would meet the needs of the club. I see those needs comprising of four main components;

 

1. Any offer should demonstrate the capacity to not only acquire the club but to invest in the club going forward.

 

2. Any offer should be supported by the requisite business skills to ensure that the recent crisis is not repeated.

 

3. Any offer should recognise that the club cannot be run on purely business principles. The club has a â??soulâ?, a history, and a tradition going back 140 years. Our children and grandchildren are entitled to the same legacy that our fatherâ??s and grandfatherâ??s bequeathed to us.

 

4. Any offer should recognise that the fans are key stakeholders in the club, whether they are shareholders or not.

 

In my view the CVA proposal that is being put forward for consideration by Duff & Phelps fails to demonstrate compliance with any of the above criteria. I accept the possibility that Duff and Phelps may know more than is contained in the CVA proposal, but if that is the case, why the lack of transparency? Duff & Phelps have earned enormous sums as administrators and have had sufficient time to ensure that full disclosure is made with any offer.

 

One practical difficulty that Duff and Phelps has is that their prime responsibility is to those stakeholders that have a legal claim on the company. This excludes the many fans who are important stakeholders but not shareholders. This leads me to some specific concerns about the CVA proposal;

 

1. It is clear from the CVA proposal that Mr Green intends to repeat Mr Whyteâ??s strategy of using season ticket sales to fund the club. This would put fans back in the position of funding the club without owning it.

 

2. I made it clear to Duff and Phelps that I regard the Whyte acquisition of the shares from the Murray Group as being fraudulent and that myself and every other minority shareholder (all fan shareholders) have been prejudiced by this. The CVA gives no recognition to this difficulty and to what reparation will be made to those shareholders who have been abused by the terms of the sale to Mr Whyte.

 

3. I also advised Duff & Phelps that I was making a claim against the club for the full amount of my investment based on the deliberate non-disclosure by David Murray of transactions that he had committed to on behalf of the club that were both risky and to the sole advantage of the Murray Group. I have made that claim but Duff & Phelps have at this stage ignored my representations.

 

4. If it becomes necessary for me to prove my claim I intend to enlist the support of the other fans, like me, who are shareholders in order to ensure that we are all considered and represented. I further advised Duff & Phelps that any proceeds received in respect of my claim will be reinvested, in full, back into the club. I am sure that all other aggrieved investors (that are fans) will do likewise. This will ensure that a substantial portion of the funds used to acquire the club will still be available to invest in its future.

 

5. Mr Whyte gave me first right of refusal on his shares on the 29th September 2011. Andrew Ellis subsequently advised me that Mr Whyte had personally advised him about my first right of refusal but that Mr Ellis had a prior right to 24,9% of the shareholding from Mr Whyte. Based on my own history of dealings with Mr Whyte I have no reason to doubt Mr Ellisâ??s version. Either way, Mr Green cannot acquire the shares.

 

It is not my intention, and I know Mr Ellis feels the same, to get in the way of a properly structured and a properly funded transaction that meets the needs of all stakeholders, including the fans.

 

In my view, based on previous discussions with Mr Whyte, it is unlikely in the extreme that he would sell â??hisâ? shares to Mr Green for a nominal sum (even if he hadnâ??t committed them to me) unless he was obtaining some benefit or retaining some control behind the scenes. Duff & Phelps non-communicative approach to stakeholders causes me further concern in that regard.

 

I am opposing the CVA and urge all loyal fans to do the same. We donâ??t want to be back in a similar situation next season. I also believe that all true Rangers fans should not buy any season tickets until full and frank disclosure has been provided by Duff & Phelps, Mr Green, and Mr Whyte, as to what is truly going on behind the scenes.

 

Dave King

Johannesburg

7th June 2012

[North Rd 0]

Why doesn't he show us his money then, WTF is he playing at, it's Murray he said he was going after, now this!

[GovanAllan 0]

The man is a cocksocket and I've had enough of his sniping from the wings.

[amms 0]

He clearly feels all is not as it seems. He might be right, he might not be, but he's earned his right to speak surely?

I have to say I also don't think Whyte is walking away from this with £2 in his pocket, that might be the bitter pill we need to swallow to get back on track though.

[calscot 0]

I don't quite get his statement. He starts off very well but then there's that record ripping sound in my head when he says he wants to sue the club for £20m. How is that going to help. He then says he'll reinvest the money - so what it the point? You sue the club for £20m it doesn't have, if you win it's back in administration and then you reinvest the money? Very weird. If he was suing Murray then fair enough but how will suing the club help?

 

Then he opposes the CVA but the problem there is that that spells out liquidation and a very difficult time for the club.

 

I'm of the opinion that the Green offer is total shit but I rather find a shit port that fleeces me of all my money and goods but survive to start again than to flounder in a storm and possibly die. And that's how I see Green at the moment - he's a shit option but there's nothing better around to keep us alive.

 

The "NO GREEN AND WHYTE AT IBROX" is pretty catchy though...