Rangers are a zombie club.
The statement by Duff & Phelps today is further evidence, if it were needed, that Rangers FC (in Administration) will soon be no more.
It has been clear to the well –informed readers of this site that Undead FC does not have long for this realm.
With massive liabilities and limited revenue streams, there is only one dignified thing to do and that is to go out and heroically check the Antarctic weather.
Instead they have something of the night about them.
Of course, the end of Rangers should have happened a long time ago, but the club cheated death by drinking the life blood of others.
Hearts, for example, will almost certainly never get their money for Lee Wallace.
Rangers used PAYE remittances as cash flow, a practice that regular readers to this site were aware of last year.
The finely crafted Dave King statement today is the first shot in a war for the remains of Rangers.
There are two “conditional offers” being prepared.
I understand that the condition is that the club wins the “big tax case” and that outstanding liabilities can be dealt with in a CVA.
The key to the success of NewCo Rangers would be access to Ibrox stadium.
The team would play in the same colours in the same stadium and the fans would be the same.
However they would have to deal with the owner of that asset and that is likely to be Mr Craig Whyte.
I am sure he would only charge a modest rent.
Liquidation would, of course, mean a break in the historical link to the founders of the club.
I contacted an insolvency expert, and I asked him for a brief explanation of the Liquidation process.
“Quick guide to liquidation.
A liquidator can’t be appointed whilst administration in effect.
If administrators decide purposes of administration can’t be fulfilled i.e. can’t rescue as a going concern nor will it be better for creditors to stay in admin.
The administrator can move the company into creditors’ winding up (winding up = liquidation). This is by notification to the Registrar of Companies + the court, but not by court order.
Or else administration ceases and the company, the directors or a creditor ask the Court of Session to make a winding up order.
A provisional liquidator can be appointed when the petition is presented to court, especially if there are concerns re disposal of assets by the insolvent company.
A provisional liquidator does not mean the co is in liquidation.
If settlement not agreed, and winding up granted (or the administrators appoint a liquidator) an interim liquidator is appointed.
He has 28 days to investigate the company’s affairs and will call creditors’ meeting. The meeting appoints the liquidator.
On a winding up order being granted the liquidator is to complete, transfer or bring to an end all company contracts. This includes employment contracts. Effectively they end on winding up.
The liquidator has to cease the company’s business; settle legal disputes; sell any assets; collect money owed to the co and distribute funds to creditors.
Player registrations revert to the SPL.
The company is effectively dead at that stage.
Hope this helps!”
It does indeed.
The only thing that can save Rangers from going into liquidation is a REAL billionaire.
So far only Tommy from Glasgow seems to be a player which is a bit rich.
I fancy having a stake in them myself.