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”.
____________________________________________________________________________
Related information:
Profit from buying a distressed business
Football clubs offer unique opportunity for buyers
Administration could be just around the corner for Scottish football clubs
Represents an opportunity for a hospitality acquirer seeking a restaurant with additional takeaway in Harrow.
LEASEHOLD
Wedding venue business with accommodation and large restaurant for sale in Cambridgeshire. With a capacity for up to 110 wedding guests, the16th Century traditional building boasts original features, open fireplaces, exposed beams and elegant interio...
LEASEHOLD
Restaurant for sale in Hartley Wintney, Hampshire. Offering a 3-bed flat, a large car park, and a detached property.
LEASEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.