Hertz in Admin in 24hrs

[Craigy1881 79]

Update to this story and it does not sound good

 

Heart of Midlothian have been hit with a warning that they will be liquidated unless offers for the club improve.

 

Ukio Bankas, which is going through bankruptcy proceedings in Lithuania, is the major creditor of Hearts, with £15m owed to Vladimir Romanov’s failed bank.

 

Any CVA would have to be agreed by Ukio’s administrator Valnetas UAB, but on Monday a spokesman for the insolvency experts issued a statement to the Daily Record and Lithuanian news outlet Delfi that the offers so far to buy Hearts were “not satisfactory”.

 

Improved bids from fan-led Foundation of Hearts, US-backed HMFC Ltd and Angelo Massone’s Five Stars Football Ltd arrived with the club’s administrators BDO last week but the offers have been deemed short of the valuation of Ukio.

 

Negotiations will continue with the Foundation and Massone’s bid, but HMFC Ltd, fronted by borders businessman Bob Jamieson, is understood to have officially left the bidding process.

 

Gintaris Adomonis of Valnetas said in a statement that two of the offers would continue to be negotiated.

 

He said: “Ukio Bankas – the main creditor of Scotland’s football club Hearts – obligated the club’s administrator BDO to continue negotiations with two potential investors with the aim to improve financial offers.

 

“If no feasible offer with terms and conditions acceptable to Ukio Bankas creditors is achieved, Ukio will remain with the only solution – liquidation of Heart of Midlothian Plc and enforcement of the standard security over Tynecastle Stadium.

 

“I sincerely hope this is the way of things we can still avoid.”

[ian1964 10,448]

BRYAN JACKSON has told Hearts bidders to come up with MILLIONS more to prevent liquidation.

 

Lithuanian administrators Valnetas UAB have snubbed all three offers for Jambos and Jackson told prospective saviours they need to stump up soon or Valnetas will pull the plug on the club.

 

The Foundation of Hearts have bid £3million for a CVA, with another £3.75m set aside for running costs, while Angelo Massone’s Five Stars group’s offer is in the region of £5m.

 

Jackson revealed: “I don’t know the exact shortfall, but there is quite a gap still to go. It could be coming into millions.

 

“It’s not millions as in another five million, I’d not have thought, so it’s hard to say if the bidders can get there.

 

“I think they’d be prepared to liquidate if they felt it was in the best interests of their creditors.

 

“But I still think they are sympathetic to Hearts being sold as a football club and, in some ways, it might be quicker and easier for them to realise the asset by going down that route.

 

“Liquidation is always a possibility when a business is in administration.

 

“But we’re confident we can work with the bidders to produce an outcome that saves Hearts and provides an acceptable return to Ukio Bankas’ creditors.

 

“I believe we are making progress towards a constructive solution. Hopefully all parties will recognise the best value will be realised by selling Hearts as a going concern.”

 

Valnetas administrator Gintaras Adomonis insists he would not hesitate to liquidate Hearts if he felt it was his best option.

 

He said: “I can repeat we are doing everything we can to save Hearts.

 

“However, I am obliged to protect solely the interests of Ukio Bankas and its creditors.

 

“If no feasible offer with terms and conditions acceptable to Ukio Bankas creditors is achieved, Ukio Bankas will remain with the only solution — liquidation of Hearts, and enforcement of the standard security over Tynecastle stadium.”

 

The Foundation are now seeking a further six-figure sum from private backers to boost their chances.

 

Chairman Ian Murray MP plans to hold more talks with Jackson.

 

Murray said: “We remain hopeful we can demonstrate to Hearts’ creditors our proposal provides the strongest return and carries the lowest risk, in short by far the best solution.

 

“This announcement from Lithuania does again demonstrate the need for supporters to set up direct debits via foundationofhearts.org if they can.”

 

Bob Jamieson’s HMFC Limited have been ruled out of the running to take over.

 

Jamieson said: “I’m disappointed. Our offer was £2.5m for the CVA and £2.5m for running costs. I thought that was a fair bid.”

 

Read more: http://www.thesun.co.uk/scotsol/homepage/sport/5040987/Administrator-tells-Hearts-bidders-to-come-up-with-millions-to-save-club.html#ixzz2aV62rcb8

[Gribz 743]

S'P'FL doing there most to avoid this.

[ian1964 10,448]

SPFL boss Neil Doncaster refuses to panic as crisis at Hearts and Dunfermline threatens to ruin new league kick-off

30 Jul 2013 07:20

 

THE footballing supremo says he thinks that the Pars and the Jambos will weather their financial troubles, despite both clubs standing on the brink of ruin.

 

NEIL DONCASTER was refusing to push the panic button last night despite Hearts and Dunfermline both teetering on the brink of ruin just days before the SPFL kick-off.

 

The chief executive of Scotland’s relaunched league spoke to Record Sport as storm clouds gathered over Tynecastle and East End Park on another desperately gloomy day for our game.

 

Hearts were rocked before lunchtime when their main Lithuanian creditors released a statement in which they threatened to liquidate the club after booting out the only offers on the table to save them from administration.

 

Later in the afternoon came the chilling warning that the Pars will go out of business in the next 24 hours unless, as is strongly hoped, a CVA is rubber-stamped today which allows supporters to save their club from extinction.

 

The financial chaos now threatens to engulf the big SPFL kick-off – with Partick Thistle taking on Dundee United on Friday night.

 

If one or both of these clubs were to go to the wall before or after the start of the campaign Doncaster’s new body, which has not yet attracted a sponsor, will be thrown into turmoil.

 

But the Englishman remained upbeat yesterday while confirming no side will be asked to guarantee they will be able to fulfil their fixtures.

 

He said: “That has never been the case, even for clubs in administration.

 

“All we can do is continue to monitor the situation. Hearts will begin the season with a 15-point penalty but dialogue is continuing between the administrators and Ukio Bankas. If they can get a CVA away there will be no need for the SPFL to become further involved.

 

“If not, and if there is a request to transfer their share, the matter will be dealt with by our board.

 

“There is no point in speculating about what may or may not happen. For example, I’m led to believe the situation at Dunfermline is not as bleak as has been made out.”

 

Today is D-day for the Fife club with preferred bidders Pars United set to discover if they have come up with enough cash to keep the East End Park gates open.

 

Creditors amounting to at least 75 per cent of the club’s total debt will either accept their pence-in-the-pound offer or sentence the Pars to liquidation.

 

For Hearts the agony of administration looks set to continue for some time yet, with Ukio Bankas prepared to hold off for an offer that meets their £5m demand.

 

But the Lithuanians made it clear they will move to wind the business up unless that fee can be met by one of two remaining bidders after a third consortium, including Bob Jamieson and American outfit Club 9 Sports, fell by the wayside.

 

In a statement Gintaras Adomonis, Ukio Bankas bankruptcy administrator, said: “If no feasible offer with terms and conditions acceptable to Ukio Bankas creditors is achieved, we will remain with the only solution – liquidation of Hearts of Midlothian Plc and enforcement of the standard security over Tynecastle.”

 

Now only fans’ group the Foundation of Hearts and former Livingston chairman Angelo Massone’s Five Stars Football Limited remain at the table.

 

But the Foundation’s bid is understood to fall around £2m short of the asking price. Although Massone’s offer is believed to be much closer, the controversial Italian has failed to convince the administrators he would then have the cash reserves needed to run the club as a going concern.

 

Administrator Bryan Jackson of BDO will meet with the Foundation today in an attempt to discuss alternative options, including payment deferrals, which might appease accountants in charge of Ukio Bankas.

 

The bank went down itself having loaned Hearts £15m and has security over Tynecastle Stadium.

 

Jackson said: “Liquidation is always a possibility when in administration but we are confident we can work with the bidders to produce an outcome that saves the club and provides an acceptable return to the creditors of Ukio Bankas.”

 

Ian Murray MP, independent chair of the Foundation of Hearts, said: “We remain hopeful we can demonstrate to creditors our proposal provides the strongest return and carries the lowest risk.

 

“This announcement from Lithuania demonstrates the need for fans to set up direct debits via foundationofhearts.org if they can.”

[ian1964 10,448]

DON'T PANIC!

 

 

[chilledbear 16]

No laughing.

 

 

Money owed in wage arrears combined with cash for players made redundant and fees outstanding to Liverpool, Rangers, Ayr United, Kaunas, Musselburgh Athletic, Livingston, Stenhousemuir and Musselburgh Athletic totals £535,000.

[ian1964 10,448]

A Scottish FA judicial panel tribunal regarding Hearts' insolvency event has been postponed.

 

The club received a notice of complaint after entering administration.

 

"Due to the unavailability of tribunal members, today's [Thursday's] judicial panel tribunal has been postponed," read an SFA statement.

"The principle hearing relating to the notice of complaint issued to Heart of Midlothian will now take place on Thursday 1 August."

 

Hearts are in breach of Disciplinary Rule 14(g): "suffering an insolvency event by entering into administration", the SFA said earlier this month.

 

The club have debts of £25m - owed to companies formerly owned by Vladimir Romanov, who first invested in the club in 2005.

 

Gary Locke's team will start next season in the Scottish top flight with a 15-point deduction, while a registration embargo means the manager cannot sign new players.

 

Among the penalties the SFA could hand out are a censure, a fine or an extended signing ban.

 

Bryan Jackson, of Hearts' administrator BDO, has previously said that a fine would be a "disaster".

 

"Any monetary penalty would be a big, big concern in how we'd get over that," he said

 

http://www.bbc.co.uk/sport/0/football/23357790

[ian1964 10,448]

HEARTS administrators BDO have revealed that the club owe £28.5 million after sending a *detailed report of the club’s debts to all 200 creditors.

 

The full extent of Hearts’ *financial predicament has been laid bare in a 45-page document compiled by the troubleshooter.

 

It was previously thought that the Tynecastle club’s arrears stood at about £25m following years of financial mismanagement under departed owner Vladimir Romanov.

 

But the dossier paints a more bleak picture. As well as the £15.5m and £8.2m due to Ukio Bankas and UBIG – Russian businessman Romanov’s collapsed companies in Lithuania – other significant creditors are also listed. This includes £1.9m due to Her Majesty’s Revenue and Customs. This debt is due from a £1.75m tax case that the club lost last year when they agreed a repayment plan of three separate £500,000 instalments.

 

A total of £1.7m is owed to Milson Capital Corp and Ensco 165 Ltd, companies thought to be controlled by Romanov. *Milson loaned £1.2m last season to pay players’ wages.

 

The report states that Hearts owe a total of £535,000 in football debt, which must be repaid in full by any new owners. Liverpool are due £47,000, while the likes of Rangers, Livingston, Ayr United and Stenhousemuir are waiting on smaller amounts.

 

The club is also in arrears to their training base landlords Heriot Watt University to the tune of £146,000.

 

Creditors are due a total of £28,424,336 but that amount could rise further with BDO expecting more claims.

 

Hearts supporters rallied behind the stricken club when it was plunged into administration on 19 June amid grave cashflow problems.

 

More than £813,000 was brought in from additional season ticket sales, while main sponsors Wonga gave an advance of £103,000.

 

Compensation income from the departure of Arvydas Novi*kovas to German outfit Erzgebirge Aue amounts to £84,000.

 

For the period of 19 June to 26 July, a total of £1,269,107 came into the club, with £310,630 going out, including £212,000 on wages.

 

The report notes that the 18 employees made redundant (13 office staff and five players) are listed as preferential creditors, with their claims being processed by the Department of Trade and Industry and expected to be in the region of £90,000.

 

A meeting of the creditors and BDO is due to take place at Tynecastle on 12 August for “the purpose of considering the Joint Administrators’ proposals and determining whether to establish a Creditors’ Committee”.

 

The administrators for the club’s biggest creditor Ukio Bankas this week told the two parties bidding to take over the club that they must improve their offers. Fans group the Foundation of Hearts submitted a £3m offer for a Company Voluntary Arrangement, while Angelo Massone’s Five Stars Limited tabled £4m. BDO will name a preferred bidder from the two and that group will hope to reach a pound-in-the-pence CVA debt compromise with the club’s creditors.

 

• HEARTS will discover today whether they are to face any punishment from the SFA for plunging into administration.

 

The Judicial Panel Tribunal has been rearranged for 1.30pm today after the planned 18 July hearing was postponed. Hearts’ joint-administrator Bryan Jackson is expected to attend the Hampden meeting. The club were issued with a notice of complaint by the SFA for breaching disciplinary rule 14(g), ‘suffering an insolvency event by entering into administration’. Penalties available to the panel include a fine, signing embargo and suspension or termination of Hearts’ SFA membership. Hearts are already under a signing ban while the club remains in administration.

 

http://www.scotsman.com/sport/footba...-bdo-1-3023364

[ian1964 10,448]

HEARTS administrators BDO have revealed the club owe £28.5million after sending a detailed report of the club’s debts to all 200 creditors.

 

The full extent of Hearts’ financial predicament has been laid bare in a 45-page report.

 

It was previously thought the Tynecastle outfit’s arrears stood at around £25m after years of mismanagement by departed owner Vladimir Romanov.

 

But the dossier paints a more bleak picture. As well as the £15.5m and £8.2m due to Ukio

 

Bankas and UBIG – Romanov’s collapsed businesses in Lithuania – other significant creditors are also listed.

 

This includes £1.9m due to Her Majesty’s Revenue and Customs. This debt is due from a £1.75m tax case that the club lost last year.

 

A total of £1.7m is owed to Milson Capital Corp and Ensco 165 Ltd – companies thought to be controlled by Romanov. Milson loaned £1.2m last season to pay players’ wages.

 

The report states Hearts owe £535,000 in football debt, which must be repaid in full by any new owners.

 

Liverpool are due £47,000, while the likes of Rangers, Livingston, Ayr United and Stenhousemuir are waiting on smaller amounts.

 

The club is also in arrears to their training base landlords Heriot Watt University to the tune of £146,000.

 

Creditors are due a total of £28.424.336 but that amount could rise further with BDO expecting more claims.

 

Hearts supporters rallied behind the club when it plunged into administration on June 19.

 

Over £813,000 was brought in from season ticket sales, while sponsors Wonga gave an advance of £103,000.

 

Compensation income from the Arvydas Novikovas’ move to Erzgebirge Aue in Germany amounts to £84,000.

 

For the period of June 19 to July 26, a total of £1.269.107 came into the club, with only £310,630 going out – including £212,000 on wages.

 

The report notes the 18 employees made redundant (13 office staff and five players) are preferential creditors, with their claims being processed by the Department of Trade and Industry and expected to be in the region of £90,000.

 

A meeting of the creditors and BDO is due to take place at Tynecastle on August 12 for ‘the purpose of considering the Joint Administrators’ proposals and determining whether to establish a Creditors’ Committee’.

 

The administrators for the club’s biggest creditor Ukio Bankas this week told the two parties bidding to take over the club that they must improve their offers. Fans group the Foundation of Hearts submitted a £3m offer for a CVA, while Angelo Massone’s Five Stars Limited tabled £4m.

 

BDO will name a preferred bidder and that group will hope to reach a pence-in-the-pound CVA debt compromise with the club’s creditors.

 

Hearts will discover today whether they are to face any punishment from the SFA for plunging into administration.

 

The Judicial Panel Tribunal has been rearranged for 1.30pm this afternoon after the planned July 18 hearing was postponed.

 

Hearts’ joint-administrator Bryan Jackson is expected to attend the Hampden meeting, having already said it would be a ‘disaster’ if the club were to be fined.

 

Penalties available to the Panel include a fine, signing embargo and suspension or termination of Hearts’ SFA membership.

 

The Jambos already have a signing ban while the club remains in administration.

 

Meanwhile, Hearts administrators BDO have run up a £189,000 bill for their first month of work at Tynecastle.

 

Joint-administrators Bryan Jackson, Trevor Birch and James Stephen were appointed on June 19.

 

The insolvency practitioners say they have dedicated a total of 716.95 hours to the troubled Edinburgh club, which amounts to £189.499.75.

 

The details of their involvement with Hearts are outlined on the creditors’ reports.

 

It reads: “This shows a total of 716.95 hours at an average charge out rate of £264.31 totalling £189,499.75 + VAT, together with disbursements of £3,005.17.”

 

http://www.dailyrecord.co.uk/sport/football/football-news/report-lays-bare-full-horror-2111404

[ian1964 10,448]

RHecord Hotline:

 

RANGERS fans are watching to see how the Hearts situation develops and are demanding the Gorgie club are treated just as they were a year ago if liquidation comes their way.

 

But yesterday callers to the Hotline told the Light Blue legions to stop sticking their nose into the problems of other clubs, with Jambos supporters claiming they don’t want special treatment.

 

With Dunfermline safe for now after successfully agreeing a CVA, Edward Easson emailed: “Dunfermline are now safe from liquidation and Hearts are nearly there yet we still have Rangers fans wanting these teams relegated.

 

“When will they realise they got what they deserved and couldn’t agree a CVA with the people they owed money to?”

 

Willie Quinn, Darvel, emailed: “Rangers fans are correct to assume Hearts would be sent to the bottom tier if they were liquidated but they don’t need to worry about their club being asked to fill the gap in the top flight. Why would we want to ask a newco from the lower leagues? Last year the SPL was the best and most competitive without them.”

 

William Hill, Newcraighall, emailed: “Listen Rangers fans – Hearts will take their punishment if and when it comes. Meanwhile, Rangers are heading for a double dip administration with their current spending.”