Deloitte Do ‘Walking Away”

When Charles Green engaged in an Initial Public Offering in 2012, he raised £22m. His prospectus which valued Ibrox and Auchenhowie at a combined quantum of over £100m was a leap that many were prepared to make despite the fact that he had bought them, with other people’s money, a few months earlier for £1.5m.

Charles for his next trick masked a £1.1m burn rate – due in no small part to McCoist’s £825.000 basic salary – by sweating the fixed assets further by apportioning a negative goodwill consideration of £20.45m. He turned an obvious loss into a paper profit. As this was a one trick pony the burn rate in subsequent years was stripped of its Deloitte artifice to plunge RIFC Plc into a pool of red ink. Had it not been for some deft accountancy flim flam RIFC Plc would have lost money in every year of its short existence.

My favourite detail from a 121 page Prospectus with many creative gems was The Switcheroo, viz:

On 14 June 2012, Sevco 5088 Limited entered into agreements for no consideration to legally reassign its beneficial interest to Sevco Scotland Limited.”

There were no flies on Mr. Green. Aiden Earley and Craig Whyte were caught with their flies undone. Green exclusively owned the £2 share capital in 5088 and same in Sevco Scotland. Whyte – who tried desperately to mask his involvement – would have added value if his shares remained vital. When the CVA failed Whyte was surplus to requirements. Mr Whyte’s Reservoir Dog was inordinately parched.

The decision by Deloitte to ‘do walking away‘ from its business relationship with RIFC has ignited some feverish debate on social media. Apparently the intimidation became too much for one of their partners. They recused themselves from £594,000 of non audit work and £90,000 in fees. Not exactly chump change for any fee-earner. Negative goodwill ponies evidently don’t come cheap.

I have followed the debate on SFM doing my best to avoid the maudlin old Scouser who thinks Jesus and brass bands should be a firmament in football debate. Last time I checked Jesus did not study at The Juilliard.

One poster, I venture Steerpike in one of his many guises, is suggesting that CFC supporters were behind the febrile agitation. One could conjure up a number of legitimate lines of  enquiry apropos material uncertainty with robust language. However the tone of Deloitte’s Dear John implies the use of a more industrial vernacular. Would how the fuck can you give the bastard child of liquidated clusterfuck a going concern green light be closer to the mark?

Phil Macgiollabhain ignited the debate with a cri de couer. He would have one facing down the malcontents. He advocated SFA involvement. Would he continue to lobby for governance intervention if members of his very own Republican Twitter Army were the perpetrators of the intimidation?

I have been warned not to challenge Phil Macgiollabhain on any matter as donations, that fell off a cliff yesterday despite a week of prodigious output, would dry up. Am I not allowed to engage in the debate?

From my perspective and personal experience there are two types of threats to individuals who offend ‘the klan.

There are opportunistic threats as was the case when individuals burnt out a car outside my apartment. It was not my car. However when three plain clothes policemen turned up at my door they left me in no doubt that I was the target.

Anonymity is a useful shield to ward off opportunistic attacks.

It’s no deterrent to the paramilitaries who have targeted your humble correspondent. These Orange Order members are ‘juiced in’ to police intelligence via their handlers in Special Branch. They know my identity and the address of my parents. These individuals are not cyber bullies. They are not sending bullets in the post. One of their number has killed on at least 38 occasions.

I’m not ‘heroically anonymous.’ Facing down faceless assassins with my pen evidently does not go far enough for the more ‘heroic’ in the social media milieu.

I have no need to consider The Thirty-Six Stratagems or The Art of War when anonymity and flight are my only recourses.

I digress. I opened this piece with an outline of a successful rights issue. There are those who believe that the Gerrard revolution will be underpinned by June’s foray into the unknown.

It may be worth recalling that in 2004 Sir Bribe & Lie initiated a £57m share issue, designed to wipe out a debt burden which had seen Rangers downsize their previous on-field ambitions. £51m was raised from the share issue, but £50m of this was underwritten by Murray and effectively transferred off Rangers’ books into his company, Murray International Holdings (MIH).

June’s rights issue will not be underwritten by either of the three bears or King. They are prohibited from any form of participation. These shares are not supported by any stock exchange ( LSE AIM for Green, Ofax for Murray) and as such their price is not derived from RIFC Plc’s performance. Alastair Johnston, illegally prompted by King, will pluck a figure from the ether but I would be inordinately surprised should the offer be fully subscribed.

I contend that on a See Saw featuring Charles Green’s IPO on one side and Lite’s get out of UEFA jail free card on the other, the independent directors would be up in the air, jockeying to avoid a hard Sir Bribe & Lie landing.

If only Deloitte had not done ‘walking away.’



19 thoughts on “Deloitte Do ‘Walking Away””

  1. Your right there James you can’t say anything bad about Jill 33 double barrel names he likes to spit the dummy out .This is a guy who is never wrong and always on the money with his articles not .All we hear from him us admin 2 admin 3 admin 4 and we are still waiting . Another classic from him is his rugger guy passing on info it’s any info you could pick up in a pub or on the bus all it is is hearsay nothing else .But there are loads of people hanging on his every word.

  2. JJ, I noticed that “heroically exiled” comment appearing once again on Phil’s blog. I quite enjoy reading some of his posts but he’s getting very close to calling you a coward. That, I don’t like.

    I’m sorry to hear your donations are falling away. I will send you an extra tenner later. Right now my dinner is ready. Or as my dear, departed mother would say, “Your tea’s oot.”

    1. Likewise. I even posted a comment on his blog and was disappointed Phil chose not to publish it.

      Both blogs are hugely insightful and can do without these distractions

  3. Charles Green had Cenkos as his financial advisers and nomad.

    Glib and Shameless has Alexander David Securities (“ADS”) as his adviser but I use the term adviser very loosely in this instance as they have never been able to gain nomad status basically because they are very well known in The City as a “boiler room operation.”

    Lets put it a different way…..

    If Cenkos were a car they would be a Rolls Royce.

    If ADS were a car they would be the vehicle belonging to the Flintstones.

    Hope this makes sense.

    Now moving on to forthcoming Rights Issue. A free bit of advice to the gullibles known as the non concert party “soft loan” holders.

    If you convert your soft loans into equity leaving Dave Dodgy Eye King and the 3 Bears as the only loan note holders. In the event of Admin 2 King and the 3 Bears own the company and control the inevitable liquidation of RIFC PLC by dint of being the largest creditors. Don’t be gullibles for Gods sakes. Do not convert your loans you muppets or you’re all dead as a dormouse 😉

    1. I did a bit of work with Cenkos back before their own IPO. They were set up by Andy Stewart (formerly named major shareholder of Collins Stewart) and named after one of his racehorses. They were all good ambitious and professional people. Heavily geared at the time towards up and coming AIM launches. In Andy Stewart and Jon Ravenscroft at the time they had the guys in place to sell those stocks to serious investors.

      Great article JJ. Might have went with the title “Deloittes are on but nobody’s home”.

  4. And don’t underestimate the reasons for Paul Murray and Barry Scott trampling over women and children to escape the Titanic. It really is that serious.

  5. The liquidation can keeps getting kicked along the road with soft loans that are now tapped out. The Close emergency cash is a repayable high interest temporary reprieve. Despite recent wishful thinking there is no investor willing to piss away millions. They cannot defy financial gravity much longer

  6. So Bates leaves ibrox because they couldn’t afford his 7 grand a week wage but the press put it out there that Rangers want to sign Rooney Torres and Balotelli you couldn’t make it up .

  7. Yes, staff members at Deloitte and their associates were indeed threatened, but of course, sweet SFA was done about it. This was the sign out:

    “During the period of our audit appointment in 2013 and 2014, members of our engagement team and other Deloitte partners unconnected with the audit received threatening or intimidating messages from anonymous third party sources.”

    Surely nothing like that couldn’t happen again….

  8. JJ, Have just sent you £10 via PayPal. Transaction ID ends 0802. I almost forgot as I had such a sumptuous dinner/tea I fell asleep after it for three hours. This is what happens when you are 75!

    All the best.

    JJ: thanks john. I’m glad you enjoyed your post prandial nap.

  9. So the good times are just round the corner .Gerrard is here all this new investment money new players champions league football getting mentioned and all the goodies that come with it .But then Murray &Scott upsticks and leave and walk away from this money that could be heading in the club’s direction. Still no explanation from anyone on the board about it .Watch out for some good old spin fake news stories on Monday regarding the new club.

  10. Hi JJ, don’t comment too much these days, my wee illness is back but I’m good and fighting hard and being upbeat,I never miss a blog and I too noticed the remarks from Phil.I find him very defensive if you do not agree with him or pull him up for being too biased on certain topics, if you remember he spat the dummy out and complained to you about me a while back, calling me a racist for using the term “Phil 3 names”, honestly !!, he blocked me and after he complained to you(he knew I used to comment frequently on this award winning site)trying to get get you to block me too,you couldn’t make this crap up, he goes running and greetin’ like a bairn because his ego is slightly bruised.I was worried and thought that you would either put me in the naughty chair or block me too, luckily for me you did neither.A comment on a different site should not lead to a suspension on another site.Talk about childish.I still get around his blockade-ha ha

    Slightly off topic but what a season for my Killie Boys, hopefully we can finish off tomorrow on a high note against the Jambos. Be safe my friend

    yours in sport
    Gaun the Killie

    1. Sean,

      As long as our Speakeasy continues you will have a welcome here. In the final analysis I agree with him on more topics than I disagree. Many of my readers also read his site. As a general rule of thumb he works his side of the street and I work mine.
      On a personal note keep fighting the good fight on your health.

      As for Killie they have been a sensation this year under Clarke. Keep an eye on UEFA. Lite are not home and hosed despite the SFA wish list.

      1. I hope that’s the case and that UEFA have a more forensic approach to reviewing applications than the SFAs ‘aye, that’ll dae’ method.

  11. By the time I arrive in NZ the league will be finished and the only question will be whether Motherwell or Kilmarnock join Aberdeen and Hibernian in Europe. Not even the SFA will try to trick UEFA and give Sevco a license.

    1. One will easily locate the DONATE button adjacent to the hits counter in the left hand margin.I invite you and all readers to make a donation as the close season will soon be upon us.

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