Sexton Hardcastle Posted August 29, 2014 Share Posted August 29, 2014 . Link to comment Share on other sites More sharing options...
Paolo Posted August 29, 2014 Share Posted August 29, 2014 Not sure how much to believe of that Phil fellow. If he is right about bonuses not being paid, does the club not need to declare this, and then comes under a transfer embargo, like our pre admin one. Link to comment Share on other sites More sharing options...
tartofmidlothian Posted August 29, 2014 Share Posted August 29, 2014 Phil Mc whatshisname has the following to say...interesting. http://www.philmacgiollabhain.ie/rifc-running-on-fumes/#more-5016 If his info's correct and they've paid wages but not bonuses, does that not put them on the wrong side of SPFL rules just as we were? Or have those rules been cleaned up since we were hammered by them? Or is it only a player complaint which can trigger action? Link to comment Share on other sites More sharing options...
tartofmidlothian Posted August 29, 2014 Share Posted August 29, 2014 Not sure how much to believe of that Phil fellow. If he is right about bonuses not being paid, does the club not need to declare this, and then comes under a transfer embargo, like our pre admin one. What was the first punishment we received again? IIRC it built up over three or four offences. Was the first one a transfer embargo until they were paid? Link to comment Share on other sites More sharing options...
Don Dan Posted August 29, 2014 Share Posted August 29, 2014 If his info's correct and they've paid wages but not bonuses, does that not put them on the wrong side of SPFL rules just as we were? Or have those rules been cleaned up since we were hammered by them? Or is it only a player complaint which can trigger action? From the 1st Aug 2013 SPFL rules (if they've not been changed). No mention of bonus payments. Default in Player and Football Manager/Coaching Staff Remuneration E17 Except in circumstances where there is a bona fide dispute as to liability for payment by the Club, where the Club is entitled to deduct or otherwise withhold payment of a sum otherwise due or where the Club takes, suffers or is subject to an Insolvency Event, any Club which shall fail to pay any sum due by it to a Player under and in terms of that Player?s Contract of Service and/or any sum due by it under a contract of employment to any Official engaged in football management and/or football coaching (a ?Remuneration Default?) shall be in breach of these Rules. E18 Any Club which suffers or is subject to a Remuneration Default shall within 2 days of such default notify the Secretary in writing of any such default with details of the amount(s) and Player(s) and/or Official(s) concerned and if it fails to so notify the Secretary it shall be in breach of these Rules. E19 Any Club which commits a Remuneration Default shall not, except with the consent of the Board, be entitled or permitted to Register any Professional Player with the League and the League shall not register such a Player until the Board is satisfied that such Remuneration Default shall no longer continue or subsist. Link to comment Share on other sites More sharing options...
Victor Meldrew Posted August 29, 2014 Share Posted August 29, 2014 They say that if they don't get the minimum subscription amount, they will be unable to pay their debts as they fall due. that, folks, is the statutory definition of insolvency. It will be interesting whether the press report that Der Hun is on the brink of insolvency, because that is the reality of the situation! Link to comment Share on other sites More sharing options...
tartofmidlothian Posted August 29, 2014 Share Posted August 29, 2014 From the 1st Aug 2013 SPFL rules (if they've not been changed). No mention of bonus payments. Default in Player and Football Manager/Coaching Staff Remuneration E17 Except in circumstances where there is a bona fide dispute as to liability for payment by the Club, where the Club is entitled to deduct or otherwise withhold payment of a sum otherwise due or where the Club takes, suffers or is subject to an Insolvency Event, any Club which shall fail to pay any sum due by it to a Player under and in terms of that Player?s Contract of Service and/or any sum due by it under a contract of employment to any Official engaged in football management and/or football coaching (a ?Remuneration Default?) shall be in breach of these Rules. E18 Any Club which suffers or is subject to a Remuneration Default shall within 2 days of such default notify the Secretary in writing of any such default with details of the amount(s) and Player(s) and/or Official(s) concerned and if it fails to so notify the Secretary it shall be in breach of these Rules. E19 Any Club which commits a Remuneration Default shall not, except with the consent of the Board, be entitled or permitted to Register any Professional Player with the League and the League shall not register such a Player until the Board is satisfied that such Remuneration Default shall no longer continue or subsist. That's pretty crystal clear what should happen, if PMG'S correct in his belief. Link to comment Share on other sites More sharing options...
FWJ Posted August 29, 2014 Share Posted August 29, 2014 Basically yes. But most firms with a rights issue to existing shareholders intend to use the cash to generate more value for said shareholders. In time this can even increase the share price. In Rangers case, however, the cash is to be used to pay wages etc to limp along until the end of the season when some sort of Plan B is hoped for. The smart money must be on a sale and leaseback of Ibrox. Cheers. Sounds like things are coming to a head (again). Link to comment Share on other sites More sharing options...
djf Posted August 29, 2014 Share Posted August 29, 2014 As much as I hate Sevco's actions, I definitely hate the way that Phil guy uses the phrase 'for the avoidance of doubt' way more. Link to comment Share on other sites More sharing options...
Don Dan Posted August 29, 2014 Share Posted August 29, 2014 They say that if they don't get the minimum subscription amount, they will be unable to pay their debts as they fall due. that, folks, is the statutory definition of insolvency. It will be interesting whether the press report that Der Hun is on the brink of insolvency, because that is the reality of the situation! That may spook the creditors into demanding payments due or for money up front. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted August 29, 2014 Share Posted August 29, 2014 So let's say they manage to shift the shares (best case). They are still counting on promotion to lift revenue but I still fail to see how they are even attempting to break even. Still, I will quite happily see them take a 15 point deduction for Admin. Link to comment Share on other sites More sharing options...
Riccarton3 Posted August 29, 2014 Share Posted August 29, 2014 Livingston was hit recently with a transfer embargo. My recollection is that it involved unpaid player bonuses. Link to comment Share on other sites More sharing options...
Don Dan Posted August 29, 2014 Share Posted August 29, 2014 Livingston was hit recently with a transfer embargo. My recollection is that it involved unpaid player bonuses. From the Daily Ranger, "Livingston have been hit with a transfer embargo by the Scottish Professional Football League after alleged undeclared bonus payments. The ban comes after the club voluntarily presented the SFA with the evidence. In a letter to the SFA and SPFL, the current board of directors allege that as much as ?30,500 was paid to players and management in undeclared bonuses between 2010-2011." Link to comment Share on other sites More sharing options...
Riccarton3 Posted August 29, 2014 Share Posted August 29, 2014 From the Daily Ranger, "Livingston have been hit with a transfer embargo by the Scottish Professional Football League after alleged undeclared bonus payments. The ban comes after the club voluntarily presented the SFA with the evidence. In a letter to the SFA and SPFL, the current board of directors allege that as much as ?30,500 was paid to players and management in undeclared bonuses between 2010-2011." Not sure, now. Googled it and it says from various sources they defaulted on tax payments. Link to comment Share on other sites More sharing options...
Mr Nobody Posted August 29, 2014 Share Posted August 29, 2014 So if the info from Phil is correct they will have declare the default by tomorrow? Link to comment Share on other sites More sharing options...
Skivingatwork Posted August 29, 2014 Share Posted August 29, 2014 You would think they'd be upfront and honest with the authorities in their dealings and declare an inability to pay all monies owed, however, history has taught us this isn't their strong suit. Can only imagine they'll be 'hammered' by those in charge of our game if it later comes to light they didn't disclose this at the time. Oh wait... Link to comment Share on other sites More sharing options...
Footballfirst Posted August 29, 2014 Share Posted August 29, 2014 (edited) The share price has dropped by just 1p thus far, which is not unexpected. My reading of the AIM statement is that this issue is just a stop gap measure to raise emergency funding to get them through to the AGM. The time scales are so tight that the whole issue has to be completed within two weeks. The club appears to have ?1.5M of free cash, the same amount that is due to Easdale and Letham as of Monday. I'd expect that Letham will get his cash back (or a proportion of it) and that Easdale will do a deal that will give him more shares. At the AGM, assuming that the spivs take up their options, they will have sufficient votes to disapply pre-exemption rights for a future share issue. They are talking about raising ?20M-?30M over the next 3 years. That is a hell of a lot of shares to shift and will marginalise all other shareholders (just as Vlad did with his debt for equity issues). I can see this charade going down the Portsmouth route with rounds of share issues, loans secured on Ibrox and Murray Park, new owners with little interest in the football club etc. The only attraction can be the property assets. This will end in tears. Edited August 29, 2014 by Footballfirst Link to comment Share on other sites More sharing options...
vegas-voss Posted August 29, 2014 Share Posted August 29, 2014 Is the plan to get through the season and then collect the pot of gold that awaits them.It's as if they are basing it on everything will be great when they reach the top league but as everybody knows there is no cash in Scottish football so how are they ever going to get out of the mess they are in just seems impossible to me.Rangers imo will never be able to generated money to make themselves profitable. Link to comment Share on other sites More sharing options...
HawkeyeTheGnu2.0 Posted August 29, 2014 Share Posted August 29, 2014 This will end in tears. Of joy, for all bar der Hun? Link to comment Share on other sites More sharing options...
I P Knightley Posted August 29, 2014 Share Posted August 29, 2014 From the 1st Aug 2013 SPFL rules (if they've not been changed). No mention of bonus payments. any sum due to a Player under that Player?s Contract I imagine the formula for a bonus is in the contract. Hang 'em high! Link to comment Share on other sites More sharing options...
Victor Meldrew Posted August 29, 2014 Share Posted August 29, 2014 Is the plan to get through the season and then collect the pot of gold that awaits them.It's as if they are basing it on everything will be great when they reach the top league but as everybody knows there is no cash in Scottish football so how are they ever going to get out of the mess they are in just seems impossible to me.Rangers imo will never be able to generated money to make themselves profitable. Wouldn't it be great to play a central role in their demise by winning the league and keeping them in the Championship (assuming they don't make it up via the play-offs). To (mis)quote Kevin Keegan: "I would LOVE it" Link to comment Share on other sites More sharing options...
Footballfirst Posted August 29, 2014 Share Posted August 29, 2014 (edited) From their last full year accounts to June 2013, Brian Stockbridge made the statement "At June 30 2013, the Club had ?11.2 million cash at bank, with only ?4.5m of this representing season ticket renewals." It is not clear if the current cash total of ?4.26M includes ST money received before the end of June 2014. If it does, then they are in an even worse state than I thought. If we are comparing like with like, then the cash burn rate was ?7M over the last year or approx ?600K a month. What we don't know is the amount of debt that has been accumulated over that period, e.g VAT, bonuses etc as alluded to by PMGB. That info should come out of the accounts which should be published within the next 6 weeks or so. If bills have been accumulating then the cash burn rate will be higher than the ?600K a month, i.e. bad news for a "going concern" sign off by Deloittes. Edited August 29, 2014 by Footballfirst Link to comment Share on other sites More sharing options...
Walter Bishop Posted August 29, 2014 Share Posted August 29, 2014 Maybe we should put in a derisory offer for Wallace? ?50k should suffice. Link to comment Share on other sites More sharing options...
The Mighty Thor Posted August 29, 2014 Share Posted August 29, 2014 Erra Shares 5 for a pound, 5 for a pound. Tickety tock you horrible ****s. Link to comment Share on other sites More sharing options...
CJGJ Posted August 29, 2014 Share Posted August 29, 2014 Maybe we should put in a derisory offer for Wallace? ?50k should suffice. I'd rather we bid for Lewis MacLeod who has great potential now he is over his illness. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted August 29, 2014 Share Posted August 29, 2014 Where's the prospectus for these shares? Link to comment Share on other sites More sharing options...
Dalstonjambo Posted August 29, 2014 Share Posted August 29, 2014 Maybe we should put in a derisory offer for Wallace? ?50k should suffice. nah - offer nothing and tell them they will save on wages. Lets really make them suffer. The trip to ibrox made me realise just how much i hated them and their 'fans' with not a full set of teeth amongst them. I won't miss them when we go up and they don't, and hope this time they die for good. Link to comment Share on other sites More sharing options...
The Mighty Thor Posted August 29, 2014 Share Posted August 29, 2014 Where's the prospectus for these shares? They're actually that skint they can't afford to produce one. What would you put in it anyway? SPFL winners 2017 Champions League Winners 2020 Link to comment Share on other sites More sharing options...
Footballfirst Posted August 29, 2014 Share Posted August 29, 2014 Where's the prospectus for these shares? The AIM notice is it. Under EU rules they can raise up to ?5M without a prospectus, hence the ?4M ceiling for this issue. Apart from costing money to produce (which they don't have) a prospectus might mean disclosure of more of their dirty linen. Link to comment Share on other sites More sharing options...
Juan Jose Carricondo Perez Posted August 29, 2014 Share Posted August 29, 2014 I actually think that want this to fail. That way they can pretty much do whatever they like and tell the fans "we gave you a chance to do something so now you can't complain". Ibrox and Murray Park will be sold to keep the books propped up for another year. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted August 29, 2014 Share Posted August 29, 2014 The AIM notice is it. Under EU rules they can raise up to ?5M without a prospectus, hence the ?4M ceiling for this issue. Apart from costing money to produce (which they don't have) a prospectus might mean disclosure of more of their dirty linen. At least our "prospectus" was honest enough to admit it was a begging bowl! Link to comment Share on other sites More sharing options...
Ron Swanson Posted August 29, 2014 Share Posted August 29, 2014 (edited) I actually think that want this to fail. That way they can pretty much do whatever they like and tell the fans "we gave you a chance to do something so now you can't complain". Ibrox and Murray Park will be sold to keep the books propped up for another year. Edited August 29, 2014 by hogsonmaman Link to comment Share on other sites More sharing options...
I.T.K Posted August 29, 2014 Share Posted August 29, 2014 (edited) So when is the new shares issue 'open' and when does it close, or when do they need to sell the 15 million shares that are need to pay the creditors! Just checked and I think the offer closes around the 12th of September! http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=12066370 Edited August 29, 2014 by I.T.K Link to comment Share on other sites More sharing options...
The Mighty Thor Posted August 29, 2014 Share Posted August 29, 2014 I can imagine the conversation 'Good afternoon institutional investors.....' 'Aye its ra peepul eh the glesca rangers here. goonae buy some mare shares n'at, naw?' 'Why? what happened to all the money we gave you last time?' 'oh we pure used it tae win the league against the bus drivers and bakers n'at. gonnae buy mare?' 'No.' 'Whit? we ken where use ur. your windaes ur gettin tanned.' Link to comment Share on other sites More sharing options...
Skivingatwork Posted August 29, 2014 Share Posted August 29, 2014 Can they not just pay the creditors using the warchest? Link to comment Share on other sites More sharing options...
Hagar the Horrible Posted August 29, 2014 Share Posted August 29, 2014 This prospectus is a minefield of information where they have carefully hid the truth about the criticality of their predicament with positive rhetoric. Its a total admission of being done, even if its a 100% uptake they have admitted they still need to raise external funding to meet working capital in Latter half of the current financial year? this is not just to the end of the season this gets them to Mar 31st. I am going to have to break this down in small chunks but right now its a mass of info and at least its a more accurate description of where they actually are as lets face it they had to come clean via AIMS? Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted August 29, 2014 Share Posted August 29, 2014 Can we close this thread now? It's getting boring! :'> Link to comment Share on other sites More sharing options...
jamboinglasgow Posted August 29, 2014 Share Posted August 29, 2014 If your a serious investment fund, why on earth would you buy shares in a company which has a history of financial issues, no signs of curbing loss making and using a share issue to cover a few months running costs (at which point they need larger investment.) Link to comment Share on other sites More sharing options...
Hagar the Horrible Posted August 29, 2014 Share Posted August 29, 2014 The big thing is that this is not Underwritten and if it fails to meet the 15m uptake they WILL be unable to pay its creditors as they fall due!!!!!!!! their words....BOOOM!!!!!!! Link to comment Share on other sites More sharing options...
Footballfirst Posted August 29, 2014 Share Posted August 29, 2014 (edited) What the relatively sensible end of the spectrum of Bears fans are saying about the share offer. http://www.thecoplan...or-another.html Groundhog Day: The Board Calls for Another Share Issue By Peter Ewart | Contributor The Rangers Board released a statement in regards to a potential share issue in RIFC plc on the 6th of August and today we have the details. What is on offer? A further 19.8m shares in RIFC plc are available through an Open Offer at ?0.20 per share, a discount of 21.6% on the 28 August closing price, to all shareholders who held shares at 5 p.m. on the day. Shareholders can buy 0.30185 new shares for every 1 share currently held, so if you bought 714 shares for ?500 at the IPO you can buy 215 new shares at ?43. If all the shares are taken up then there would be 85.6m shares in RIFC plc. Essentially a 23% equity stake in RIFC plc is being offered to existing shareholders for ?3.96m. What is an ?Open Offer?? An open offer is the offer to existing shareholders to add shares pro-rata to their existing shareholding. It is not a rights issue ? if you do not take up the offer then you cannot decide who does ? therefore there is no tradeable or transferable right. Existing shareholders will have the ability to apply to buy more shares than their pro-rated amount through an Excess Application Facility. What do the Board say? Ultimately the Board say that they cannot offer you financial advice and neither can we at the CRO. The fans do get a snippet of the 30 June 2014 year end position as far as cash goes ? a cash balance of ?4.3m, ?2.72m of which was not immediately available as it is in Rangers Retail. (Compared to a cash balance of ?11.2m 30 June 2013.) The Board also say that a minimum of 15m of the 19.8m shares will have to be subscribed for otherwise: ?the Company will be unable to pay its creditors as they fall due and the future of the Company will be uncertain; The Directors will immediately have to seek emergency financing which may or may not be available.? That doesn?t need a translation. The media have run stories of the Board seeking someone to ?underwrite? the share issue ? to pick up any slack where existing shareholders do not wish to buy new shares. Mike Ashley amongst others were mentioned, but it does not appear that anyone has stepped forward. The Board members who do own shares (Nash, Easdale, Crighton and Somers) have said that they will take up their offer of new shares. It will be interesting to see if we get a reaction from the original investors (BPH, Margarita) and the IPO Institutional investors (Artemis, Hargreave Hale etc). I own shares, what do I need to do? It is up to each shareholder what to do next. If you own shares via a share certificate you will be contacted. If you own shares electronically (through a nominee account having bought through a broker or a bank) then if you wish to participate you need to contact your bank or broker to discuss arrangements. What will the proceeds cover? The outlook is stark. The ?3.6m will be used to pay part of the ?1.5m loans from Easdale and Letham secured at the end of last season. Arguably, both could choose, or be offered, new shares instead of having the loans repaid. The remainder, potentially as little as ?2.1m, will be used as working capital ? to cover everyday expenses of the business. Given our known operating costs that will not buy much additional time. What happens next? On the face of it, 23 percent of RIFC plc for ?4m could look attractive. That view should be weighed against the statement that ?20-30m in fundraising will be needed over the next three years. So it can be certain that it will not be the last call on shareholders to raise money ? you would need to invest again in order not to have your shareholding diluted. This share issue itself cannot really be described as an investment; it is repaying loans and plugging a funding gap in the very short term. More money will be needed before the end of the season and the Board have said they will need additional external funding before the end of the financial year (June 2015) and possibly before the end of the calendar year. We definitely need to hear from the Board. Shareholders are being asked to make a decision without sight of the results for the year ended 30 June 2014 (although we can take it they won?t be good) and without sight of a funding plan after this share issue. What is the deadline? Time is very short: If they choose to subscribe the deadline for shareholders to have all their paperwork/monies sorted out is within a fortnight (12 September). I am sure we all will but there is little point in going back over the wasted money and spent opportunity of the last two years. Fans will ultimately pay for all of it (in every sense) in the long run, but let?s be honest: We knew that anyway. It?s now a matter of how we get a meaningful say, and how quickly, for the hard earned money we spend. Each shareholder must look forward and decide how best to give the whole Club the overhaul it badly needs. Edited August 29, 2014 by Footballfirst Link to comment Share on other sites More sharing options...
Hearts Heritage Posted August 29, 2014 Share Posted August 29, 2014 Toys out of pram http://sport.stv.tv/football/clubs/rangers/290070-rangers-will-not-be-able-to-pay-creditors-if-4m-share-offering-fails/ Link to comment Share on other sites More sharing options...
jamboinglasgow Posted August 29, 2014 Share Posted August 29, 2014 http://sport.stv.tv/football/clubs/rangers/290070-rangers-will-not-be-able-to-pay-creditors-if-4m-share-offering-fails/ This is brilliant, Ally looks pissed off, comes into room and says he will only talk about football matters, first question is about the share issue. Link to comment Share on other sites More sharing options...
Juan Jose Carricondo Perez Posted August 29, 2014 Share Posted August 29, 2014 This prospectus is a minefield of information where they have carefully hid the truth about the criticality of their predicament with positive rhetoric. Its a total admission of being done, even if its a 100% uptake they have admitted they still need to raise external funding to meet working capital in Latter half of the current financial year? this is not just to the end of the season this gets them to Mar 31st. I am going to have to break this down in small chunks but right now its a mass of info and at least its a more accurate description of where they actually are as lets face it they had to come clean via AIMS? I read calander year year as being end of December rather than finacial year at end of March. By the sounds of it they are messed. Link to comment Share on other sites More sharing options...
Harry Palmer Posted August 29, 2014 Share Posted August 29, 2014 (edited) Pies! Edited August 29, 2014 by Arnold Link to comment Share on other sites More sharing options...
Boris Posted August 29, 2014 Share Posted August 29, 2014 http://sport.stv.tv/...offering-fails/ This is brilliant, Ally looks pissed off, comes into room and says he will only talk about football matters, first question is about the share issue. I wonder how many shares he will buy? Assuming he some already. Link to comment Share on other sites More sharing options...
Boris Posted August 29, 2014 Share Posted August 29, 2014 McCoist! Ahahahahahahahahahahahaha What a fud! Link to comment Share on other sites More sharing options...
tartofmidlothian Posted August 29, 2014 Share Posted August 29, 2014 Can we close this thread now? It's getting boring! Link to comment Share on other sites More sharing options...
The Mighty Thor Posted August 29, 2014 Share Posted August 29, 2014 If your a serious investment fund, why on earth would you buy shares in a company which has a history of financial issues, no signs of curbing loss making and using a share issue to cover a few months running costs (at which point they need larger investment.) George Sorros is digging his cheque book out as we speak. Link to comment Share on other sites More sharing options...
tartofmidlothian Posted August 29, 2014 Share Posted August 29, 2014 Poll up on the Daily Record site asking the opinion of Rangers fans. In no way are answers being given by fans of other clubs. http://www.dailyrecord.co.uk/sport/football/football-news/rangers-fans-your-say-15-4127613 Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted August 29, 2014 Share Posted August 29, 2014 Toys out of pram http://sport.stv.tv/football/clubs/rangers/290070-rangers-will-not-be-able-to-pay-creditors-if-4m-share-offering-fails/ Link to comment Share on other sites More sharing options...
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