Rangers new owners 'appreciate risk of insolvency'
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Rangers new owners 'appreciate risk of insolvency'
Rangers new owners 'appreciate risk of insolvency'
Rangers is contesting a £49m bill from HMRC.
A judge who froze £480,000 of Rangers assets has said the club's new owner recognises it could go under if it loses a disputed £49m tax claim.
The detail emerged in a published opinion from judge Lord Hodge, who is hearing former chief executive Martin Bain's case for unfair dismissal.
The judge said the takeover deal for Rangers had been structured to protect the new owner if the tax case was lost.
He said this was "an appreciation...of a risk of insolvency".
Mr Bain is pursuing a £1.3m damages claim against Rangers at the Court of Session in Edinburgh.
He raised the claim alleging breach of contract following the takeover at Rangers FC by venture capitalist Craig Whyte from former owner Sir David Murray.
'Not persuaded'
On 13 September, Lord Hodge granted a warrant to ring-fence £480,000 of the Ibrox club's assets, pending the outcome of Mr Bain's case, after deciding there was "real and substantial risk of insolvency".
Martin Bain is suing Rangers for unfair dismissal This centred on the, as yet undecided, outcome of a disputed tax claim from Her Majesty's Revenue and Customs, which totals £49m in tax and penalties.
In his written opinion, Lord Hodge stated: "I am not persuaded on the material placed before me that Rangers is presently insolvent on either of the tests of practical insolvency or absolute insolvency."
The judge, however, said he did believe there was a genuine threat to the club from the tax case and believed the new owner fully recognised this threat.
Lord Hodge referred to a circular sent to shareholders of Rangers on 3 June 2011.
He stated that this document "disclosed that The Rangers FC Group Limited (formerly Wavetower Limited) had purchased 85.3% of the shares of Rangers for the cash sum of £1 and had given certain undertakings".
Continue reading the main story
“
Start Quote
I would have expected the chief executive of a public company to be aware whether or not his employment contract had the needed shareholder approval”
End Quote
Lord Hodge
Judge
Lord Hodge said The Rangers FC Group Limited had taken over Rangers' £18m indebtedness to the Lloyds Banking Group, "and obtained an assignation of the bank's securities over Rangers' assets".
According to the circular, this debt would be waived if Rangers had "not suffered an insolvency event within 90 days of the club's appeal in relation to the tax claim".
The judge noted that until the case was settled, and the debt was waived, all investment in Rangers by The Rangers FC Group Limited would be treated as increasing the club's debt to it.
Lord Hodge concluded that "this carefully structured deal" through which The Rangers FC Group Limited has secured a charge over Rangers assets and made the waiving of the club's debt conditional on a positive outcome to the tax case, "shows an appreciation by The Rangers FC Group of a risk of insolvency resulting from that claim".
The judge added: "When I asked Mr Napier (Rangers QC) if he could clarify Rangers' position in relation to the HMRC claim for £49m...he was not able to assist as he had no instructions in relation to that matter.
"I must therefore treat Mr Bain's assertions as to the extent of HMRC's claim as uncontradicted, although I acknowledge that the claim itself is the subject of an appeal by Rangers."
Elsewhere in the opinion, Lord Hodge noted that Rangers pointed out that Mr Bain had a 39-month contract agreed with the club in September 2009.
The club's QC said that a long-term service contract of this length was prohibited under the Companies Act 2006 unless it had been approved by a resolution of the members of the company.
Mr Bain's QC said his client did not know whether the members of Rangers had approved the contract.
Lord Hodge added: "I found that surprising as I would have expected the chief executive of a public company to be aware whether or not his employment contract had the needed shareholder approval."
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Rangers is contesting a £49m bill from HMRC.
A judge who froze £480,000 of Rangers assets has said the club's new owner recognises it could go under if it loses a disputed £49m tax claim.
The detail emerged in a published opinion from judge Lord Hodge, who is hearing former chief executive Martin Bain's case for unfair dismissal.
The judge said the takeover deal for Rangers had been structured to protect the new owner if the tax case was lost.
He said this was "an appreciation...of a risk of insolvency".
Mr Bain is pursuing a £1.3m damages claim against Rangers at the Court of Session in Edinburgh.
He raised the claim alleging breach of contract following the takeover at Rangers FC by venture capitalist Craig Whyte from former owner Sir David Murray.
'Not persuaded'
On 13 September, Lord Hodge granted a warrant to ring-fence £480,000 of the Ibrox club's assets, pending the outcome of Mr Bain's case, after deciding there was "real and substantial risk of insolvency".
Martin Bain is suing Rangers for unfair dismissal This centred on the, as yet undecided, outcome of a disputed tax claim from Her Majesty's Revenue and Customs, which totals £49m in tax and penalties.
In his written opinion, Lord Hodge stated: "I am not persuaded on the material placed before me that Rangers is presently insolvent on either of the tests of practical insolvency or absolute insolvency."
The judge, however, said he did believe there was a genuine threat to the club from the tax case and believed the new owner fully recognised this threat.
Lord Hodge referred to a circular sent to shareholders of Rangers on 3 June 2011.
He stated that this document "disclosed that The Rangers FC Group Limited (formerly Wavetower Limited) had purchased 85.3% of the shares of Rangers for the cash sum of £1 and had given certain undertakings".
Continue reading the main story
“
Start Quote
I would have expected the chief executive of a public company to be aware whether or not his employment contract had the needed shareholder approval”
End Quote
Lord Hodge
Judge
Lord Hodge said The Rangers FC Group Limited had taken over Rangers' £18m indebtedness to the Lloyds Banking Group, "and obtained an assignation of the bank's securities over Rangers' assets".
According to the circular, this debt would be waived if Rangers had "not suffered an insolvency event within 90 days of the club's appeal in relation to the tax claim".
The judge noted that until the case was settled, and the debt was waived, all investment in Rangers by The Rangers FC Group Limited would be treated as increasing the club's debt to it.
Lord Hodge concluded that "this carefully structured deal" through which The Rangers FC Group Limited has secured a charge over Rangers assets and made the waiving of the club's debt conditional on a positive outcome to the tax case, "shows an appreciation by The Rangers FC Group of a risk of insolvency resulting from that claim".
The judge added: "When I asked Mr Napier (Rangers QC) if he could clarify Rangers' position in relation to the HMRC claim for £49m...he was not able to assist as he had no instructions in relation to that matter.
"I must therefore treat Mr Bain's assertions as to the extent of HMRC's claim as uncontradicted, although I acknowledge that the claim itself is the subject of an appeal by Rangers."
Elsewhere in the opinion, Lord Hodge noted that Rangers pointed out that Mr Bain had a 39-month contract agreed with the club in September 2009.
The club's QC said that a long-term service contract of this length was prohibited under the Companies Act 2006 unless it had been approved by a resolution of the members of the company.
Mr Bain's QC said his client did not know whether the members of Rangers had approved the contract.
Lord Hodge added: "I found that surprising as I would have expected the chief executive of a public company to be aware whether or not his employment contract had the needed shareholder approval."
HAAAAAAAAAAAAAAAAAAAAAAAA,HEEEEEEEEEEEEEEEEEEEEEEE
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Re: Rangers new owners 'appreciate risk of insolvency'
If rangers were to go under it would be the end for scottish football. seltic would surely follow as who would bother turning up to watch a 1 horse race.
Re: Rangers new owners 'appreciate risk of insolvency'
i think it would hasten celtics acceptance into the british football system
it all hinges on the mr bain court case and the new owner successfully appealing the 49 mil HMRC debt in order to offset and get the 18 mil debt with lloyds waived, very dangerous game as they cannot pay the 49 mil, and the club is worthless, hence he bought 83.5% of the clubs shares for a pound lol
it all hinges on the mr bain court case and the new owner successfully appealing the 49 mil HMRC debt in order to offset and get the 18 mil debt with lloyds waived, very dangerous game as they cannot pay the 49 mil, and the club is worthless, hence he bought 83.5% of the clubs shares for a pound lol
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Re: Rangers new owners 'appreciate risk of insolvency'
If Rangers fold then Celtic hav to join the English system, but where would they start League Two or the Conference. I can't see clubs willing to hand them a ticket to the EPL.
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Re: Rangers new owners 'appreciate risk of insolvency'
ozzie owl wrote:If Rangers fold then Celtic hav to join the English system, but where would they start League Two or the Conference. I can't see clubs willing to hand them a ticket to the EPL.
Unibond League is the only fair way.
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Re: Rangers new owners 'appreciate risk of insolvency'
Maybe the British Govt can give them a rescue package like they did with the banks given they are such an intrinsic English institution.
I didn't realise that the English were such poor businessmen, they are almost as bad as the Greeks!
I didn't realise that the English were such poor businessmen, they are almost as bad as the Greeks!
Re: Rangers new owners 'appreciate risk of insolvency'
even thats a step upGod is an Englishman wrote:ozzie owl wrote:If Rangers fold then Celtic hav to join the English system, but where would they start League Two or the Conference. I can't see clubs willing to hand them a ticket to the EPL.
Unibond League is the only fair way.
COLOSSUS wrote:Let me guess, ive got no balls
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Re: Rangers new owners 'appreciate risk of insolvency'
BlackBrian_7 wrote:Maybe the British Govt can give them a rescue package like they did with the banks given they are such an intrinsic English institution.
I didn't realise that the English were such poor businessmen, they are almost as bad as the Greeks!
How are a team in scotland an English institution? I don't think Rangers have ever been English owned.
I know that's probably a fishing line but such a stupid comment deserves to be commented on.
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Re: Rangers new owners 'appreciate risk of insolvency'
Come on they are England's team in Scotland.God is an Englishman wrote:BlackBrian_7 wrote:Maybe the British Govt can give them a rescue package like they did with the banks given they are such an intrinsic English institution.
I didn't realise that the English were such poor businessmen, they are almost as bad as the Greeks!
How are a team in scotland an English institution? I don't think Rangers have ever been English owned.
I know that's probably a fishing line but such a stupid comment deserves to be commented on.
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Re: Rangers new owners 'appreciate risk of insolvency'
i think any good Englishman will wish them well over celtic, but they are definitely a scottish side.BlackBrian_7 wrote:Come on they are England's team in Scotland.God is an Englishman wrote:BlackBrian_7 wrote:Maybe the British Govt can give them a rescue package like they did with the banks given they are such an intrinsic English institution.
I didn't realise that the English were such poor businessmen, they are almost as bad as the Greeks!
How are a team in scotland an English institution? I don't think Rangers have ever been English owned.
I know that's probably a fishing line but such a stupid comment deserves to be commented on.
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Re: Rangers new owners 'appreciate risk of insolvency'
Funnily enough Beach Boys - Sloop John B (I wanna go home) just played on the work radio.
How apt?
How apt?
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Re: Rangers new owners 'appreciate risk of insolvency'
Hibs seven wrote:http://edinburghnews.scotsman.com/news/ ... 6847421.jp
Please EPL take them both!!!
no doubt the paddies on here will defend this somehow.
Oh and shiraz off, we don't want them in the EPL. That said, I would love to see Millwall or chelsea v celtic in a match that meant something.
Re: Rangers new owners 'appreciate risk of insolvency'
ive always said there is a small minority, like at every club, that goes to far, the majority of fans tried to drown them out
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Re: Rangers new owners 'appreciate risk of insolvency'
DOC wrote:ive always said there is a small minority, like at every club, that goes to far, the majority of fans tried to drown them out
8 people in the one picture. Would you say 100 people in the photo?
8% is a minority, but still alarmingly high to abuse some kids.
no doubt the paddies on here will defend this somehow.
Re: Rangers new owners 'appreciate risk of insolvency'
where did i defend it? i said some supporters go to far and other fans around the place tried to drown them outGod is an Englishman wrote:DOC wrote:ive always said there is a small minority, like at every club, that goes to far, the majority of fans tried to drown them out
8 people in the one picture. Would you say 100 people in the photo?
8% is a minority, but still alarmingly high to abuse some kids.
no doubt the paddies on here will defend this somehow.
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Re: Rangers new owners 'appreciate risk of insolvency'
then played it down as a SMALL minority. Why will you lot just not accept your club has problems and get your head out of the sand?DOC wrote:where did i defend it? i said some supporters go to far and other fans around the place tried to drown them outGod is an Englishman wrote:DOC wrote:ive always said there is a small minority, like at every club, that goes to far, the majority of fans tried to drown them out
8 people in the one picture. Would you say 100 people in the photo?
8% is a minority, but still alarmingly high to abuse some kids.
no doubt the paddies on here will defend this somehow.
Re: Rangers new owners 'appreciate risk of insolvency'
ive admitted there is a small minoirty of a problem many times, you have a terrible memory, but it is a minority which even the club condemns
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Re: Rangers new owners 'appreciate risk of insolvency'
DOC wrote:ive admitted there is a small minoirty of a problem many times, you have a terrible memory, but it is a minority which even the club condemns
I just don't consider 8% in terms of a football secterianist incident to be a "small" minority. They always seems to pop up though doesn't it. As I said, 8% of your crowd booing and abusing a kids football team. That's all class.
Re: Rangers new owners 'appreciate risk of insolvency'
stuff at rangers seems to pop up too, it is a burden on both clubs, we both know both clubs are not innocent unfortunatelyGod is an Englishman wrote:DOC wrote:ive admitted there is a small minoirty of a problem many times, you have a terrible memory, but it is a minority which even the club condemns
I just don't consider 8% in terms of a football secterianist incident to be a "small" minority. They always seems to pop up though doesn't it. As I said, 8% of your crowd booing and abusing a kids football team. That's all class.
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Re: Rangers new owners 'appreciate risk of insolvency'
Now you're hiding behind it happens at other clubs and only a minority now.DOC wrote:stuff at rangers seems to pop up too, it is a burden on both clubs, we both know both clubs are not innocent unfortunatelyGod is an Englishman wrote:DOC wrote:ive admitted there is a small minoirty of a problem many times, you have a terrible memory, but it is a minority which even the club condemns
I just don't consider 8% in terms of a football secterianist incident to be a "small" minority. They always seems to pop up though doesn't it. As I said, 8% of your crowd booing and abusing a kids football team. That's all class.
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Re: Rangers new owners 'appreciate risk of insolvency'
DOC wrote:ever heard of the truth?
many times, just not when it comes to you lot and celtic. Don't worry about fixing it, just sweep under the carpet.
I've never heard of rangers fans booing an under 14's team
I've never seen rangers flans fying flags of another nation en masse in their ground
I've never heard rangers fans booing a minutes silence
I've never heard rangers fans sing songs against the army of their own country.
Re: Rangers new owners 'appreciate risk of insolvency'
scotland and england are the same country?God is an Englishman wrote:DOC wrote:ever heard of the truth?
many times, just not when it comes to you lot and celtic. Don't worry about fixing it, just sweep under the carpet.
I've never heard of rangers fans booing an under 14's team
I've never seen rangers flans fying flags of another nation en masse in their ground
I've never heard rangers fans booing a minutes silence
I've never heard rangers fans sing songs against the army of their own country.
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Re: Rangers new owners 'appreciate risk of insolvency'
DOC wrote:scotland and england are the same country?God is an Englishman wrote:DOC wrote:ever heard of the truth?
many times, just not when it comes to you lot and celtic. Don't worry about fixing it, just sweep under the carpet.
I've never heard of rangers fans booing an under 14's team
I've never seen rangers flans fying flags of another nation en masse in their ground
I've never heard rangers fans booing a minutes silence
I've never heard rangers fans sing songs against the army of their own country.
Of course they're not. I've never seen the English flag flying en masse at Ibrox. Are you trying to claim that the Rangers fans fly the English flag now, I've never seen that or Are you trying to claim that it isn't the British Army now?
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Re: Rangers new owners 'appreciate risk of insolvency'
DOC wrote:
What's that got to do with British Army or the English flag?
Re: Rangers new owners 'appreciate risk of insolvency'
english flag at ibrox, so eat your words, i've watched many a derby and seen many an english flag at ibrox and in the away section at parkhead
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Re: Rangers new owners 'appreciate risk of insolvency'
Where are the English flags?DOC wrote:english flag at ibrox, so eat your words, i've watched many a derby and seen many an english flag at ibrox and in the away section at parkhead
Re: Rangers new owners 'appreciate risk of insolvency'
there are 4 in that pic i posted, but no doubt you have some rule no one even knows and which is wrong that refers to them as st georges cross' or something douchie like that