Goodbye My Lover,Goodbye My Friend…..You Have Been The One,You Have Been The One For Me

Another day in this seemingly endless Rangers saga.  Today, it would appear that Bill Miller is the man to take Rangers forward. The simple fact that Duff & Phelps appear to agree would worry me somewhat.

At the end of the day, let’s get one thing straight. Rangers, in their current form, are not a viable option. The ‘Blue Knights’ can come away with any fanciful notion that they like; because they never planned an actual take over in the first place. If Bill Miller has anything right it is his reference to ’15 minutes of fame’.

The ‘Blue Knights’ ide of saving Rangers was nothing short of fanciful and until they come up with a serious financial backer then it will remain that way. Paul Murray is the only real known member of such a consortium and if I remember correctly, Paul Murray does not have enough personal wealth for a house in Benidorm; let alone a big enough plug to stopgap a sinking ship.

Bill Miller does. What Bill Miller is no; is completely stupid.

First of all, for the fanciful of you out there. No one that buys Rangers will be ‘paying off the debt’. I hate to be the man to break the news, but Rangers FC in their current form CANNOT be saved out-with an Abramovich style tycoon entering the fray (having taken leave of his senses or perhaps nothing else to do with his dosh).

Rangers FC, as we know it…..will pass…..

The best hope is for Bill Miller to take a new Rangers forward, quite how he plans to do this is no less obvious from his latest statement that it was last week. Indeed, quite where the man has found his definition of CVA from is beyond me; or is it?

Personally, I have an idea of where Mr Miller is going with this. I could be wrong, but I have witnessed it before (outwith football).

“Let’s save Rangers. There is no time left.”

Here is an excerpt from Mr Millar’s statement and it is quite a profound one. Save Rangers; yes….and two fingers to Duff & Phelps. Duff & Phelps has done their upmost to hinder any bids for Rangers. Indeed, in my humble opinion, Duff & Phelps have had their own personal payday and liquidation in mind for quite some time.

“…I am the only bidder who refused to entertain offers from Ticketus or engage in discussions with Craig Whyte. It is difficult for me to see how any parties who were present when this awful situation was created can be a legitimate part of the solution. I believe firmly that when you mortgage the future by the use of debts and financing instruments like has been done in the recent past; you endanger the very survival of the club. All of the ground swell created in the attempt to indicate that a CVA is a simple solution to save the club and its history is simply a naïve understanding of how this CVA process would work and the risks associated.”

I totally get this….or not. ‘Ticketus’ have a legal contract with Glasgow Rangers; the courts have said as much. Therefore, you cannot simply ignore them. If you plan to take Rangers in their current form forward then ‘Ticketus’ will need to be involved at some stage, because you owe them money. How can you even entertain the idea of a CVA without speaking to ‘Ticketus’? How then, do you know they will accept such a deal?

‘Ticketus’ will of course be ignored, and not receive a penny from my interpretation of Bill Millers bid. Craig Whyte? I actually think you could do what you like with Craig Whyte because he is unlikely to turn up to challenge it. He may own 85% of Rangers; but as a wise man once said to me. “85% of fuck all is still…fuck all”.

Mr Whyte paid £1 for Rangers. He is still entitled to be bought out as such; however…extortion would derive from anything over £1.

The RST have commented:

  1. It is on the matter of the CVA process that his lack of understanding ought to provoke real concern to D&P. 
  2. He simply does not understand what the process of exit from Administration by CVA entails. He may not even understand what a CVA is.
  3. For his information, a CVA is a collective rehabilitation process where 75% of creditors voting can accept a proposal which sets an amount payable at which amounts due to them are settled, less than the full amount due. This vote binds all other creditors existing as at that date to accept this reduced settlement. It usually comprises a series of payments over a number of years, normally three to five years. It is proposed by a “Nominee”, the nominated Supervisor, who becomes the Supervisor when the Arrangement has been approved.
  4. Funding of this settlement usually comes from an amount made available by an incoming investor, plus amounts from the earnings in future years. Where prize money or television money arises through success in competitions, a proportion of this upside would normally go to into the pot of settlement funding.

 

Sorry, but I don’t think he is the only one missing the point here. A CVA has about…5% chance of ever being accepted. The list of Rangers (main) creditors does not make for easy reading. This, of course, exists as an idea minus and FTT findings and liability. This is a subject that seems to have become an elephant in the room again.

 “Despite constant rumours and suggestions by others, I have proposed a purchase of the club through a CVA from the beginning. I have no plans for liquidation of the club. After careful evaluation of a Rangers CVA process, it has become apparent that there are substantial roadblocks and risks associated with such an approach. Of the qualified creditor claims, which is currently under £100M, the Ticketus claim of £27M (in excess of 25% of the total) would put Ticketus in a position to be able to block any CVA agreement with which they did not agree. There is no way that Ticketus would agree to accept a “pence on the pound” settlement as has been suggested by others.

Now here is one of my ideas. Does Mr Millar then plan to ‘loan’ Rangers money from one of his own companies to give his staff the role of accepting a CVA? It wouldn’t work; flatly it would not work. However, is Mr Millar aware of this?

It is an unlikely situation but not impossible.

“ ….the inevitable result would be real liquidation.”

That is the only possible result Mr Millar. A CVA will not be accepted by ‘Ticketus’ because they stand to gain more from liquidation than they do from a CVA. The strange thing is that they do not deserve it. Of all Rangers creditors it is ‘Ticketus’ that I feel least sorry for; they were blatantly stupid.

I also presume that the statement deserved a colon after the word real? Otherwise Mr Millar has invented a new type of liquidation that has never been noted in the legislation that I have read.

“Over several weeks of discussions, my advisory team and I have created a solution that saves Rangers, protects its history and gives it a fresh start – rescued from the ruin created by others. I believe, and we have compelling professional advice to support my view, that my offer, as structured, can enable this to happen without any question of Rangers seeking or being given any special treatment.”

Ahhhh, the cat is out the bag now. He means a ‘newco’.

Mr Millar goes on to give a medical analogy about a heart and an incubator. This is where I think Mr Millar is going with this.

First of all he pays the £11 million for Rangers. He will then transfer Ibrox, Murray Park and any worthwhile playing assets to the incubator company. He will also transfer rangers membership etc. over to this incubator company (as long as the SPL etc. approve, which they probably will to be fair).

This would leave Rangers completely asset stripped and worth absolutely nothing except the £11million he has put in. This would then in urn be used to pay both Craig Whyte and Duff & Phelps for their role leaving Rangers with only a couple of chairs and a bit of history.

Next step. Back the creditors into a wall: offer a CVA or liquidation. Rangers will be worth nothing, the CVA will be worth only pennies more than nothing. A CVA is accepted and Rangers FC survives.

Simple eh?

Not on your nelly is it simple. I suppose Mr Millar then purposes that he will transfer everything back into RFC as it stands today or merge the two companies into one and go on our merry way. I do not understand the law in the USA very well but I believe that this sort of idea has been done before. Mr Millar would be wise to note that Scots law is not quite the same. S.242/3 of the Insolvency Act may be of interesting reading…..

For one, Administration requires the company to function. If Rangers do not have a share in the SPL can they still function? Would this matter during the close season?

Mr Millar then states that he wants the SPL etc. to waive any penalties for Rangers. Well, if my interpretation of his plan is correct then that is all above board. Rangers as we know it would exist, but under the ownership of the NEW Rangers, or incubator as he terms it. The share in the SPL would attribute to the NEW Rangers, not the old one. As I have said in prior blogs that would then term any punishment against the NEW Rangers as unattainable in the courts and therefore unenforceable. The NEW Rangers would not be punished, and the old Rangers history would be preserved – because it would have been effectively swallowed by the NEW Rangers.

First of all, I wish I had more time to explain the legal complexities of what I interoperate Mr Millar’s idea to be. As it stands; I do not. To be fair, it is neither impossible nor as outrageous as it sounds.

Anyway, the long and short of it is simple: Bill Millar plans a new Rangers to replace the old one. Personally, as dressed up as he puts it; I think he should just be honest. He should be honest, and Rangers fans should be honest with themselves……it is inevitable.

The title of this piece? Simple. I have thought long and hard about this in the last few days. I won’t be going back to support a new Rangers. My heart won’t be in it.

No, I will be more or less finished with the game as such. I can’t be bothered anymore. I might go along with a few friends to see Airdrie, or Motherwell, or even Hamilton now and again. I won’t be calling myself a supporter; I won’t sully the real fans of these clubs with such. Nah, I will go for the day out. I will watch football on TV, but for the most part…..my money will be lost to the game.

 

 

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One Comment on “Goodbye My Lover,Goodbye My Friend…..You Have Been The One,You Have Been The One For Me”


  1. […] goodbye my lover,goodbye my friend…..you have been the one,you have been the one for me (garryjbmacinnes.com) […]


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