Rangers Liquidation

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Archie_tect

Archie_tect

De Skieven Architek... aka Penfold + Horace
Location
Northumberland
Mad Doug Biker said:
Thick question, I know, but:

The debts will be put in the hands of the creditors whilst the new company will start off without any debts but gain the assets. Fair enough, but how is the old company now devoid of its assets going to pay the debt off??
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They don't... they just write them off, walk away and start again leaving their creditors with nothing.
 
M

Mad Doug Biker

Just a damaged guy.
Location
Craggy Island
Archie_tect said:
They don't... they just write them off, walk away and start again leaving their creditors with nothing.
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Hmmm, I wonder if I could do that with my bank account! :laugh:
 
Archie_tect

Archie_tect

De Skieven Architek... aka Penfold + Horace
Location
Northumberland
Anyone can if they register as personally bankrupt but it's drastic as an individual as it affects your future credit.... whereas directors of a company going into administration or receivership appear to have no scruples whatsoever... and cynically transfer assets from a failing company into another one to then 'dump' the failing company owing as many people as they can to avoid any liability. It's legal... but it shouldn't be. Sorry, this is a hobby-horse of mine as I'm owed £35000 by a client who went bust owing creditors £540,000.. The MD set up a new company the same week and the Construction Director walked into another director's position with a rival firm the same day Neither was responsible for a penny of their debts because it was a registered limited company....
 
Chromatic

Chromatic

Legendary Member
Location
Gloucestershire
That's a major bummer Archie, no wonder its a bit of a hobby-horse of yours. Its a serious amount of income lost and must have caused you quite some problems. I agree with you, that sort of thing, the asset transfer to avoid liability, should not be legal.
 
007fair

007fair

Senior Member
Location
Glasgow Brr ..
In business the maxim seems to be 'whatever you can get away with' Rangers thought what they were doing was within this

Archie - tough story although Limited Liability is not to blame The fact these guys can set up a newco almost immediately is tough on you There should be a time lapse from when a failed MD can start a new co after the previous one failed otherwise its just debt avoidance and nothing else which is unjust.
 
A

ASC1951

Guru
Location
Yorkshire
Archie_tect said:
Sorry, this is a hobby-horse of mine as I'm owed £35000 by a client who went bust owing creditors £540,000.. The MD set up a new company the same week and the Construction Director walked into another director's position with a rival firm the same day ...
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With the wisdom of hindsight - monthly invoices/stage payments/credit checks etc. Mind you, it's never easy to turn a potential customer away.

We have got stung like everyone else in business, but never let anyone get as much as £35,000 adrift. We would down pens at less than £10,000.
 
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andrew waite

Regular
Being a big football fan it will have knock on effect if Rangers are kicked out of the SPL, a lot of the smaller teams in the SPL collect a lot of revenue from playing Rangers 4 times a year, and if sky pull the plug be course there is no old firm game that will be less money for them.
 
T

Theseus

.
Location
Edinburgh
Smokin Joe said:
Forming a Newco and carrying on as normal will not be as simple as it sounds. The players are now free agents and can simply walk away and negotiate fat signing on fees with other clubs.
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According to Green, TUPE rules apply and they have binding contracts with NowCo

I would have agreed with you though.
 
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