KennowayAli
Active Member
With another report due any week now from BDO on the state of play with oldco i took a look at the last one from dec 19 and picked up on a few things that might have got lost due to the reports that HMRC had massively grossed up the clubs tax bill, these interesting and complex facts and wishful thinking may become relevant in the months and years ahead so here goes.
HMRC £13m has been admitted this is from the Whytes ruinous stint and gave HMRC power to put oldco in its forced hiatus. £3m admitted this from the wee tax case this was still in dispute upto the last year and why res 12 was doomed to fail.
EBT £50m disputed (held) this has had to date £24m knocked off due too disgusting grossing up of penalties on it with the further £48m still disputed by BDO, reports in dec suggest that another£ 26m will be wiped off the final bill but this could possibly be higher and be as much as 32m. So at this moment in time 16m out of the £94m claim on creditors list is outstanding. BDO have also made a interim £2.7m payment to HMRC.
WISHFUL THINKING
I looked at the interim payment of £420,000 that was made to ticketus i also noticed that lawyers were paid £25,000 for litigation with them, going by this and how they bankrupted whyte in court with a claim of 17.7m costs and damages, looks like BDO have secured a reduction on this down too £11m from £27m its also looks like ticketus have asked that BDO not to mention this in the report as part of the agreement however this might be wishful thinking and i stand
too be corrected.
FACT
It seems like the trade debts have stayed the same and stand at £7m debenture holders however have only made claims of 1.5m down from 7.7m. Football debts were mostly paid off by the club, going by interim payments made and an article on the rangers website this is down too around £400,000 that just leaves the £20m listed thats dave king investment and £10m of ordinary shareholders who wont receive any money at all. This means oldcos whole admitted debt at moment stands at £35m with 50m still in dispute with HMRC and with the reports that another 25m plus might be struck off oldco final bill will lead to a possible high of around £60m and a low of £55m. With the cost of legal fees running at 18m plus so far and rising with £29m plus costs claim in against duff n phelps this will become important as will and £9.5m held in oldcos accounts and with a whyte company (wavetower) being paid off 1.8m to end dispute over assets this complex case is nearing the end game and its looking likely that vast majority of debt will be paid off and would have been if not for the eye watering vile legal bill. I will now move on and leave you with the thoughts of the mystic king himself regarding oldco.
daily record sept 2015 corn beef queef Q&A with dave king
Q: Why is reviving the Oldco important to you?
A: It would be a good thing to do. It would be back to the traditional Rangers. I think the supporters would like it.
It is not economically important but it is something I would like to do.
Q: Is it feasible?
A: It is practically feasible and legally feasible. We just have to get in the position where the liquidators have done everything they can. The club can then be rehabilitated.
But if you have all these claims floating around, where we don’t really know who is claiming assets and what they are, then it will continue for a longer period.
Q: Would this result in the oldco’s creditors being paid back in full?
A: You don’t have to pay 100p in the pound to creditors. If creditors accept a compromise and waive some of the debt it could be 50p or 60p in the pound.
HMRC £13m has been admitted this is from the Whytes ruinous stint and gave HMRC power to put oldco in its forced hiatus. £3m admitted this from the wee tax case this was still in dispute upto the last year and why res 12 was doomed to fail.
EBT £50m disputed (held) this has had to date £24m knocked off due too disgusting grossing up of penalties on it with the further £48m still disputed by BDO, reports in dec suggest that another£ 26m will be wiped off the final bill but this could possibly be higher and be as much as 32m. So at this moment in time 16m out of the £94m claim on creditors list is outstanding. BDO have also made a interim £2.7m payment to HMRC.
WISHFUL THINKING
I looked at the interim payment of £420,000 that was made to ticketus i also noticed that lawyers were paid £25,000 for litigation with them, going by this and how they bankrupted whyte in court with a claim of 17.7m costs and damages, looks like BDO have secured a reduction on this down too £11m from £27m its also looks like ticketus have asked that BDO not to mention this in the report as part of the agreement however this might be wishful thinking and i stand
too be corrected.
FACT
It seems like the trade debts have stayed the same and stand at £7m debenture holders however have only made claims of 1.5m down from 7.7m. Football debts were mostly paid off by the club, going by interim payments made and an article on the rangers website this is down too around £400,000 that just leaves the £20m listed thats dave king investment and £10m of ordinary shareholders who wont receive any money at all. This means oldcos whole admitted debt at moment stands at £35m with 50m still in dispute with HMRC and with the reports that another 25m plus might be struck off oldco final bill will lead to a possible high of around £60m and a low of £55m. With the cost of legal fees running at 18m plus so far and rising with £29m plus costs claim in against duff n phelps this will become important as will and £9.5m held in oldcos accounts and with a whyte company (wavetower) being paid off 1.8m to end dispute over assets this complex case is nearing the end game and its looking likely that vast majority of debt will be paid off and would have been if not for the eye watering vile legal bill. I will now move on and leave you with the thoughts of the mystic king himself regarding oldco.
daily record sept 2015 corn beef queef Q&A with dave king
Q: Why is reviving the Oldco important to you?
A: It would be a good thing to do. It would be back to the traditional Rangers. I think the supporters would like it.
It is not economically important but it is something I would like to do.
Q: Is it feasible?
A: It is practically feasible and legally feasible. We just have to get in the position where the liquidators have done everything they can. The club can then be rehabilitated.
But if you have all these claims floating around, where we don’t really know who is claiming assets and what they are, then it will continue for a longer period.
Q: Would this result in the oldco’s creditors being paid back in full?
A: You don’t have to pay 100p in the pound to creditors. If creditors accept a compromise and waive some of the debt it could be 50p or 60p in the pound.
