Hearts edge closer to safety in club's battle to avoid liquidation
Monday 7 April 2014 14:13, UK
Hearts have received a boost in their fight to avoid liquidation after the creditors of the club's major shareholder UBIG agreed to transfer their 50% shareholding to Hearts' administrators.
Bryan Jackson and Trevor Birch of BDO are in Lithuania meeting with the lawyers representing Ukio Bankas to try and push through a CVA.
Completion of the deal requires the backing of creditors of Ukio Bankas, which would ultimately lead to the club exiting administration and being taken over by the fan-backed Foundation of Hearts.
Ukio Bankas own around 29% of Hearts shares, but also retain a charge on Tynecastle Stadium.
However, it is unclear when the Ukio creditors will meet. There are some suggestions from Lithuania that they will not convene for another two weeks despite expectations the process would be completed on the same day as UBIG.
Reaction to Hearts' relegation
Failure to complete the deal would likely see Hearts' administrators begin liquidation proceedings, as there are currently only enough funds to keep the club operating until the end of April.
The positive news from UBIG came after reports emerged of a rival 11th-hour bid from Edinburgh businessman Pat Munro who has failed in several previous attempts to buy the club in recent years.
But a spokesman for the Ukio Bankas bankruptcy administrator, Gintaras Adomonis, said of the offer: "The form and content of it is beyond consideration - all financial proposals should be provided to BDO, the administrator of Heart of Midlothian."
The Foundation of Hearts, which has the financial backing of about 8,000 supporters, plans a gradual takeover by fans after Edinburgh businesswoman Ann Budge initially put up the £2.5m needed to rescue the club.
Hearts went into administration in June last year with debts of around £30m. They were deducted 15 points and hit with a transfer embargo and were relegated on Saturday despite a 4-2 win over Partick Thistle.
