Whyte secured creditor

Creditors voluntary liquidation — this option is available to insolvent companies that liquidate their assets and close the company paying creditors where possible. Compulsory liquidation — is when creditors issue a wind-up petition to the court, which, if successful, forces the company to close.

Liquidation is always the last option when facing financial trouble; moreover, there are many options to turn the business around if discussed early with experienced insolvency lawyers. View Larger Image. Signs your company may be in financial distress: Overdue tax debts Poor cashflow Ongoing losses unable to pay day-to-day costs or debts Issues obtaining finance Unpaid creditors Liabilities are greater than your assets If your company is in financial distress or insolvent , it is essential to get professional legal and financial advice as soon as possible to understand your options.

Voluntary administration Suppose a business is potentially in a state of insolvency. Receivership If a business enters into receivership in Victoria, a court-appointed receiver or secured creditor takes control of an insolvent company collecting and selling enough of its assets to repay the debt owed to the secured creditor.

He has been reluctant to explain anything about his business life. Last September, when meeting the Scottish press, he was asked to offer just a single example of a company which he had successfully turned around from a difficult position. The year-old declined on the grounds he likes to keep his affairs private. Again in a statement on Friday, Whyte said: "I knew when I stepped up to take over the club that the challenge of restoring Rangers to financial health after many years of living well beyond its means would be daunting.

But I accepted it, both as a life-long Rangers fan and as a businessman with experience in turning round companies in distress. A partner in that company, David Grier, was all smiles when taking adulation alongside Whyte at Ibrox last May. Nine months on, administrators went to great lengths to publicly stress there should be no suggestion of a conflict of interests and that such an arrangement was perfectly normal.

At the very least, it should be clarified exactly what consultancy advice to Rangers Grier was involved in around the time of the buyout. When the BBC aired a documentary which shone a light on to his business life, Whyte banned the broadcaster from Ibrox and promised legal action. Presiding over one of the biggest institutions in British sport was never likely to offer Whyte the anonymity he supposedly craves.

Those directors had one basic fear: that Whyte lacked the resource to fund Rangers to an appropriate level. Yet attempts to block the takeover were almost impossible due to Lloyds bank's desire to remove Rangers from both Murray's control and its own debtor list.

Alastair Johnston, the Rangers chairman at the time of the purchase, has been vociferous in his criticism of Whyte. Johnston has also requested that the takeover be investigated by both the police and the government's insolvency service. It is known that Whyte served a seven-year ban as a company director from The Scottish FA belatedly investigated whether his arrival as the Rangers chairman in contravened its fit and proper person criteria and on Friday announced a "full and independent inquiry into the activities of Rangers FC and, specifically, a number of potential breaches of the Scottish FA's Articles of Association".

Bankruptcy occurs where a person, unable to pay their debts, has a trustee appointed to control their assets and finances, in exchange for protection from legal action by their creditors.

If a person is unable to pay their debts if and when they fall due, they will be legally insolvent. A person may be bankrupted if the person is unable to sell or borrow against their assets to pay their debts.

Generally, a creditor must have obtained a Judgment on their debt and have served the debtor with a Bankruptcy Notice. The creditor may then file the Petition if the debt is not paid by the debtor before the expiration of the Bankruptcy Notice.

A bankrupt may, and is encouraged to, earn income. If the amount of income exceeds threshold limits then a contribution must be paid to their estate.