Wed, 23 Oct 2013 | BUSINESS SALE
Hearts FC's administrator has been given the go-ahead to start negotiating a CVA with the club's creditors.
The troubled Edinburgh club applied to enter administration this summer citing difficulties paying its debts to parent company Ukio Banko Investicine Grupe (UBIG) and Ukio Bankas, to which it owes £10 million and £15 million respectively, with the Tynecastle Stadium held as security against the debts.
Ukio Bankas, which itself has entered administration, controls around 30 per cent of the club's shares, meaning that it held a crucial card as a creditor. The group's administrators have now given their approval for Heart's administrators BDO to begin putting the CVA offer together for creditors.
This means that a sale of the distressed club could become a reality, with the Foundation of Hearts, a group made up of fans of the team, already cited as the preferred bidder.
Hearts administrator Bryan Jackson said that the update is “positive news” but urged “caution”. He said in a statement: “Although this is a further step in the right direction, there is still some way to go. There are a number of issues to be clarified and concerns addressed but we are at least progressing once more.”
The administrator running Ukio Bankas' operators, Gintaras Adomonis, added that it was the “zeal and tenacity of the fans” that persuaded the group that the CVA should be launched “as soon as possible”.
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