BDO battling to stave off liquidation for Hearts

HEARTS administrators BDO have insisted that preserving the Tynecastle club as a going concern is in the best interests of both creditors and bidders. BDO released their statement after Lithuanian firm Valnetas UAB, administrators of Ukio Bankas, threatened to liquidate Hearts if they did not receive better offers from the two groups which remain in the running to take over the club.

Hearts fans will hope that the Ukio Bankas administrators dont decide that cashing in on Tynecastle is their best option. Picture: Greg Macvean

A third would-be owner of Hearts, former club sponsor Bob Jamieson’s HMFC Ltd, has been ruled out by Valnetas. That leaves the Foundation of Hearts, chaired by Edinburgh South MP Ian Murray, and Five Stars Football Limited, fronted by Angelo Massone. Both groups are expected to have further talks with BDO this week.

“We are continuing to work with the administrator of Ukio Bankas and the bidders to enable the club to exit administration as a going concern,” Bryan Jackson of BDO said. “However, it should not be forgotten that it is the duty of the administrator of Ukio Bankas to achieve the best financial result for the bank’s creditors, and he will act to ensure that this happens.

“Liquidation is always a possibility when a business is in administration, but we are confident that 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. I believe that we are making progress towards a constructive solution and hopefully all parties will recognise that the best value will be realised by selling the club as a going concern.”

The Valnetas statement, released yesterday morning, was in the name of managing director Gintaras Adomonis. “I can repeat that we are doing everything we can to save the club functioning,” he said. “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 of Midlothian Plc and enforcement of the standard security over Tynecastle stadium. I sincerely hope this is the way of things we still can avoid.”

Revised offers from the Foundation, Five Stars and HMFC were all submitted by BDO to Lithuania last week as part of the process of trying to achieve a CVA. Ukio own 29.9 per cent of the shares in Hearts, while Ubig – also previously control