Foundation of Hearts finalise £2.5m bid to exit administration

Administrator Bryan Jackson chats about Hearts' current financial problems.
Bryan Jackson of BDO is one of the administrators at Hearts trying to arrange a CVA for the club to enter fan ownership.SNS Group

Creditors will meet later this month to decide on a £2.5m bid to bring Hearts out of administration.

A meeting on November 22 will consider the fan-led group the Foundation of Hearts’ offer of £2.5m to purchase the club’s majority shareholding and stadium.

The offer consists of £1 for the 29.5% shareholding of Ukio and the 50% shareholding held by UBIG, which is awaiting the confirmation of administrators in Lithuania.

Upon completion of the deal, £2m would be paid up front to secure Tynecastle Stadium, with the final £500,000 delivered after ten months.

The deal needs the acceptance of major creditors Ukio Bankas, in administration itself, and UBIG, to go ahead.

Administrators BDO said the deal represents the best outcome for creditors of the Edinburgh club, with liquidation likely to realise less from the sale of the land.

Foundation of Hearts would also assume responsibility of the £535,000 of football debt that Hearts owes.

Unsecured creditors would receive nothing under the proposal.

Ian Murray, chairman of the Foundation, said: "We welcome the news that BDO is progressing the CVA for November 22 and hope that there will be a positive outcome.

“There is much work to be done, and again I cannot stress enough the importance of supporters who have not yet signed up to FoH, and who are able to do so.”

Hearts entered administration in June this year under the weight of around £24m of debt owed to Ukio and UBIG, the former companies of Vladimir Romanov.

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