Question about liquidation and assets.

[Max Rebo's Big Blue Nose 0]

Can someone clear something up about our pending liquidation and the sale of the assets (Ibrox, MP etc.) If and when we are liquidated and the proposals are drawn up for the new co. it seems to be taken as read that the assets are just sold to the the preferred bidder (in this case Green). The thing I don't get is.... will the list of creditors not have a say in the proposed sale of assets? I know Ticketus and HMRC have stated that they will go after individuals for monies due to them but what happens to the smaller creditors? I thought the normal business practice was that the creditors were paid off from the sale of the assetts by the liquidators?

 

Cheers in advance, M Rebo

[GovanAllan 0]

Asked this in the Ally memorial thread.

 

BDO handle the sale of the assets surely they decide who buys what?

[Frankie 8,150]

Some say BDO aren't involved until the main assets are sold to the newco.

 

I think that is unacceptable. They should be part of the process now.

[Max Rebo's Big Blue Nose 0]

Asked this in the Ally memorial thread.

 

BDO handle the sale of the assets surely they decide who buys what?

 

But do creditors get any of the cash raised from the sale? For example, will Ibrox be sold to pay off Rapid and Hearts?

[Frankie 8,150]

But do creditors get any of the cash raised from the sale? For example' date=' will Ibrox be sold to pay off Rapid and Hearts?[/quote']

 

Creditors get a share of the £5.5million.

 

Not a big share given D&P and BDO's fees.

[the gunslinger 3,366]

Creditors get a share of the £5.5million.

 

Not a big share given D&P and BDO's fees.

 

and the secured creditors.

[Darthter 542]

The way I understand things is that after the official vote today, the company doesn't immediately enter Liquidation, therefore BDO don't immediately take over.

 

Once the vote is confirmed, D&P have agreed to sell the clubs assets to CG Consort. That could go through today/tomorrow.

After that, D&P then begin the liquidation process, and hand the reigns over to BDO who are left to clean things up.

[calscot 0]

I think liquidators can dispose of the assets without recourse to the creditors unless the latter can easily prove that a greater amount can be raised.

 

They would have to go to court which could take up to two years and a lot of money. It's probably not worth their while.

 

Basically, instead of a fire sale, auction style of everything the club own, the liquidators will find it expedient to sell it lock, stock and barrel for £5.5m. That money will be used to pay the expenses - eg the administrators (~£3m) and the rest split between the creditors using the well established rules of priority.

 

Basically HMRC have gone for a lose, lose, lose, lose situation - all due to their own incompetence.