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Hearts time running out


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UBIG were the ones who owned Tynecastle, so they were the ones more likely to decline the offer as they could have made money from selling the stadium etc.

UKIO own 50% of the shares I expect them to accept the offer.

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UBIG accept the transfer of shares to Ann Budge, just waiting on a yes from UKIO, looks as if Hearts will be alright after all.

As I was told.

She better ask her old man to put the housekeeping up then. She is now going to have to pay the running costs and there are only a handful of games left before the summer and it wouldn't be clever to use ST money just to get to the start of next season.

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From Sky Sports:

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.

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.

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She better ask her old man to put the housekeeping up then. She is now going to have to pay the running costs and there are only a handful of games left before the summer and it wouldn't be clever to use ST money just to get to the start of next season.

No TUPE if they get a successful CVA, meaning they have to keep all employees for at least the short term.
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they lived then?

They live today, but no decision from UKIO means that the Sword of Damocles still dangles over their very existence.

They now say that a meeting will be in the next few days but Hearts may struggle to survive if it's not resolved soon.

The administrator said that if there was no positive outcome today, he would be forced to commence liquidation proceedings. Maybe that was brinkmanship.

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Will they only get their quarter and half shares of the £2.5m after the administrator gets his, the lawyers and accountant's fees?

Apparently not.

HEARTS face an anxious wait over their future after meetings in Lithuania today failed to end in a deal to take the club out of administration.

Bryan Jackson and Trevor Birch, the BDO administrators in charge at Tynecastle, are in Lithuania and will hold further talks with Ukio lawyers in the coming days in the hope of reaching an agreement. The bank conditionally approved a £2.5million Company Voluntary Arrangement (CVA) for the share transfer last November but it has not yet been made clear why the deal has not been finalised.

UBIG have agreed to be paid a token amount of almost £100,000 for their 50 per cent shareholding. Ukio’s creditors stand to benefit from all of the CVA pot as they are Hearts’ only secured creditor. Both companies are being run by administrators themselves as a result of Vladimir Romanov’s financial collapse last year.

BDO cannot afford any lengthy delay given they only have enough money to run Hearts until the end of April or early May at the latest. They want a quick resolution to complete the CVA, take Hearts out of administration and hand the shares over to prospective owner Ann Budge.

So where are BDO being paid from, given their several months in administration?

UKIO own Tynecastle.

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No official statement from BDO/FOH today either (strange?)

Meeting at the end of next week (maybe?) this was the meeting that was to take place today and two weeks ago!!!

Ann budge said she would walk if no deal done today as well.

No wonder keechback broke down today.

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Will they only get their quarter and half shares of the £2.5m after the administrator gets his, the lawyers and accountant's fees?

Apparently not.

So where are BDO being paid from, given their several months in administration?

UKIO own Tynecastle.

UBIG own Tynecastle.

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