Thursday, 16 February 2012

A Rangers Fairy Story


A fairy story, I'm sure. Real life couldn't be as simple as this!

Why would your company raise £24M pounds against 4 years' sales?

Because your business desperately needed that funding to survive a difficult period.

Why would your company not pay VAT and PAYE for months and run up a total HMRC debt of £9M?

Because you didn't have the capital to pay this.

But how could there be insufficient funds when £24M pounds was raised ?

Because the £24M never went in to the company's accounts but into a parent company account.

But why would you not make the £24M pounds available?

Because you wanted the company to go into administration.

But why would you want to put your company into administration?

Because you would make a profit exiting administration with a debt-free company would which be attractive to purchasers.

But if you wanted the company to go into administration why would you raise £24M secured against future sales?

Because you wanted to take money out of the company before you put it into administration and to remove that as possible source from which the company's debt (or some of it) could be repaid.


As time goes on and more truth emerges I'm sure we'll look at my words here and say, "What Calum wrote was only a fairy story!"

1 comment:

  1. Once upon a time there was a famous football club called Rangers... Yes, once upon a time...

    But you should declare an interest here my friend, for if the Gers go into liquidation maybe no club will be relegated this year and just a replacement one come up, saving... Dunfermline...? I smell a bigger conspiracy, perhaps... A secret Pars fan buys Rangers for a pound...