Hearts: CVA approved on condition of majority shareholding purchase

[Darthter 542]

some new on the Hearts situation, courtesy of the BBC:

 

Hearts: CVA approved on condition of majority shareholding purchase

 

A company voluntary arrangement to take Hearts out of administration has been approved on condition of the purchase of the club's majority shareholding.

Fans' group Foundation of Hearts (FoH) offered £2.5m towards debts of around £30m but cannot acquire UBIG's majority shareholding until early 2014.

That is when UBIG is due to hold its own creditors meeting.

UBIG abstained from the CVA vote on Friday morning, but 87% of those taking part did back the FoH offer.

A meeting of shareholders also approved the CVA offer later on Friday, but Hearts administrator Bryan Jackson revealed that it could be March or even April before the club can exit administration.

 

However, FoH chairman Ian Murray MP said: "We are pleased at the outcome of today's meetings.

"It is yet another step towards the road to getting the club out of administration and back to financial health.

"The process of a CVA is extremely difficult and today is merely the beginning of the next part of the process.

"We are full of respect and admiration for the creditors who have been involved in this process.

"Today, I'd like to thank our supporters - without them it would not have been possible to get this far."

Hearts entered administration in June and started season 2013-14 with a 15-point deduction. Gary Locke's side currently sit 12 points adrift at the bottom of the Scottish Premiership.

FoH was named as preferred bidder for the club by administrator BDO in August.

Most of Hearts' debt is due to Lithuania-based financial institutions UBIG and Ukio Bankas, which are also the club's two main shareholders.

Both UBIG and Ukio Bankas are in the process of being liquidated and there were no representatives from Lithuania in attendance at Friday's meeting of Hearts creditors.

"Whilst the journey is not over yet and there is much work to be done, we can move forward with a degree of optimism that Heart of Midlothian can have a future we can be very proud of," added Murray.

[Super Cooper 0]

£30m, where they in more debt than us at our respective admin periods?

[der Berliner 3,219]

£30m, where they in more debt than us at our respective admin periods?

 

Obviously. Yet, HMRC's toxic EBT hunt made us unsellable, whether it had been 5m, 15m, or 25m. This needs to be examined to the core. A cool-headed shareholder of the Oldco should sue HMRC for that campaign ...

[Super Cooper 0]

Obviously. Yet, HMRC's toxic EBT hunt made us unsellable, whether it had been 5m, 15m, or 25m. This needs to be examined to the core. A cool-headed shareholder of the Oldco should sue HMRC for that campaign ...

 

And yet look how we ended up.

[Gribz 743]

Thing is they are still getting relegated this season, they wont overturn the point gap now. And next season whilst playing Rangers twice at home gives them good gates if we are on our game they will be having a second season in that league.

[Super_Ally 0]

I wouldn't say relegation is guaranteed. Most likely yes. But killie look atrocious.

[Darthter 542]

Hearts problem could be that they reckon the cash could run out in Feb....don't think they expect to be able to exit admin until about March due to the ongoing Lithuanian administrations....

[Zappa 0]

Interesting to note that BDO's Bryan Jackson is the same administrator as Dunfermline had and he seems to know how to get football clubs out of admin (unlike Duff & Phelps).

 

He goes in to a club and starts making redundancies almost immediately in order to radically cut costs and save cash. That's what Duff & Phelps should have done.

 

Hearts problem could be that they reckon the cash could run out in Feb....don't think they expect to be able to exit admin until about March due to the ongoing Lithuanian administrations....

 

Apparently Dunfermline are going to have serious cash flow problems too, so neither club are out of the woods by a long shot.

[Doc 280]

Hearts problem could be that they reckon the cash could run out in Feb....don't think they expect to be able to exit admin until about March due to the ongoing Lithuanian administrations....

 

Is that the cash from the sale of season tickets that were meant to cover the whole of this season? Or have they burned through that already and they are running out of another earlier cash injection as well?

[RANGERRAB 3,253]

Interesting to note that BDO's Bryan Jackson is the same administrator as Dunfermline had and he seems to know how to get football clubs out of admin (unlike Duff & Phelps).

 

He goes in to a club and starts making redundancies almost immediately in order to radically cut costs and save cash. That's what Duff & Phelps should have done.

 

 

 

Apparently Dunfermline are going to have serious cash flow problems too, so neither club are out of the woods by a long shot.

 

D&P's big mistake was not knowing HMRC were going to refuse a CVA because Whyte had withheld PAYE/NI. Their aim was to keep the first team squad together in anticipation of the CVA being successful which it wasn't. They should have known that