Thu, 20 Jun 2013 | ADMINISTRATION
After months of unease Hearts has finally entered administration, with BDO hired to take care of the situation.
The club has been dragged down by its debts of £25 million, owed to businesses that were owned by Vladimir Romanov, whose company Ukio Bankas was put into temporary administration in February. A further £10 million is owed to UBIG. On top of these hefty bills, Hearts is unable to pay a six-figure amount due to the Inland Revenue on Friday. A VAT bill, believed to be £50,000, is also pending for the end of this month which has carried over from last month’s PAYE.
A significant employer in the area, Hearts has 131 staff, including a first-team pool of 26 and ten players focused on the youth set-up.
Hearts’ assigned administrator – Bryan Jackson from BDO – says he is aware of the need for a swift resolution and of the fans’ concerns. Also the player registration ban placed on Hearts by the Scottish Premier League after it failed to pay this month’s pay checks will only be lifted once the administration is over.
To add to these woes, the club has had 15 points deducted as a result of entering administration.
Mr Jackson commented on the proceedings: “We will now undertake an urgent examination of the company’s records prior to making any further announcements.
“We are acutely aware of the need for speed in this process given the uncertainty of the last few weeks and the proximity of the season’s start. We will be talking to all the parties that have shown interest in the club in order to find a resolution as quickly as possible.”
At present there are two US groups who are interested in discussing matters with Hearts with a view to a takeover.
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