Tue, 08 Apr 2014 | ADMINISTRATION
Scottish football club Hearts has made progress in its bid to escape liquidation but must wait longer yet to learn of its fate.
At the end of last week (3 April) we reported that Hearts was facing the most important week in its history; talks were about to commence with the club and its Lithuanian owners to see if they would sell their shares to Ann Budge, a new prospective owner who has offered to buy the shares for around £2.5 million on behalf of the fans.
In positive news, Ukio Bankas Investment Group (UBIG) – one of two failed Eastern European banks, the other being Ukio Bankas, that own the club – agreed yesterday (7 April) to the transfer of its 50 per cent shareholding in Hearts. However, no deal has been made between Ukio Bankas and BDO, Hearts’ administrators, as of yet.
Ukio Bankas holds charge on the club’s ground: Tyncastle Stadium. If a deal cannot be agreed between BDO and Ukio Bankas creditors then Hearts could be set for liquidation before the end of the month. Since we last covered this situation (3 April), the team has been relegated from the Scottish Premiership too.
Nevertheless, Hearts’ chairman Ian Murray said the result of yesterday's talks was still “incredibly positive”. He added: “We’re a step closer to the goal of getting Hearts out of administration, and we’re still within the timescale BDO has set [for a completion] within the financial resources of the club.”
Yesterday’s agreement by UBIG’s creditors means a 20-day cooling-off period has begun. If there is no challenge to the agreement by the end of that period, sale of UBIG’s 50 per cent shareholding can proceed.
Ukio will need to follow the same process if a deal is agreed, taking Hearts very close to the end of the month, when BDO state that money to keep the club afloat will run out.
Time is of the essence for successful talks to take place – Business Sale Report will keep you up-to-date on any developments.
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Related information:
Hearts FC facing the biggest week in its history as liquidation looms
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