Hearts’ administrators revealed last night that they hope to have a CVA proposal ready by the end of this week.
The news came as joint administrator Bryan Jackson, of insolvency experts BDO, was told of further delays in legal moves in Lithuania to appoint an administrator to Hearts’ majority shareholder, Ukio Bankas Investment Group (UBIG).
A court hearing that is expected to confirm UBIG’s bankruptcy – and the original appointment from July of UAB Insolvensa – was expected to take place on Thursday and again on Monday. But, having already been delayed twice before following an appeal, was again postponed until yesterday.
With Lithuania two hours ahead, it was after the close of business here before BDO were informed of a new postponement in the legal discussions until Thursday.
The continued delays have become a frustrating episode in BDO’s attempts to lead the club out of administration, with possession of UBIG’s 50 per cent shareholding necessary to proceed with a buy-out.
As the club’s second-largest creditor, with just over £8 million of debts owed to them, the support of UBIG’s administrators for a Company Voluntary Arrangement (CVA) will also be pivotal to preferred bidders Foundation of Hearts gaining control.
Whilst there has been an impasse on UBIG’s position, BDO were last week given the go ahead by Ukio Bankas – who are owed £15.5 million and are the club’s largest creditor – to proceed with the CVA process by holding discussions with Ukio’s creditors and shareholders.
And Jackson revealed last night that work had continued apace since they were given the green light last week. He is now hopeful of having a CVA ready in a matter of days.
He said: “We have now been told the case has been postponed until 31 October and they have already warned us it could be a number of weeks before we are informed of the outcome.
“In the meantime, we have been proceeding with the CVA. We have been working on that this week and we should have the proposal ready by the end of the week.”