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Tuesday, 29 May 2012

Glasgow Rangers CVA Published

The CVA proposal has been published by the administrators, Duff and Phelps today.  The creditors meeting is to be held on the 14th June.  This does not give the creditors much time to consider the proposals. 

For the CVA to be approved, HMRC will need to vote in favour as it is owed a minimum of £14m, which could rise to £79m depending on the outcome of the tax tribunal.  The other major creditor Ticketus is owed £27m.

The CVA if approved by creditors will allow the club to exit from administration and continue to play in the SPL.

However the proposed funds available to unsecured is £5m which represents a small proportion of the total unsecured debt of c. £55m.  Essentially the proposal is offering less than 10p in the pound for unsecured creditors.  However it should be noted that the football creditors; players and other clubs will receive 100p in the £1 as a result of the "football creditors rule".  As a result the return to unsecured creditors is lower than normal for a CVA where the average is nearer 35-40p in the £1.

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