BDO take charge as Hearts enter administration

BDO have been appointed as the administrators of Hearts, as the club formally entered administration this afternoon.

BDO have been appointed as the administrators of Hearts, as the club formally entered administration this afternoon.

BDO will take control of the financial affairs of the Tynecastle club two days after the club announced their intention to go into administration.

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A formal announcement from the accountancy firm is expected later after the appointment was finalised early this afternoon.

Hearts had hoped to appoint KPMG but the administrators of Ukio Bankas, their major creditor and part owner, objected and insitigated the appointment of BDO.

Hearts lodged their intention to go into administration on Monday after failing to pay wages to players last Friday and in the face of a winding-up order over a partially-paid £100,000 tax bill.

The Lithuanian insolvency firm looking after the affairs of Ukio Bankas soon took control of the situation as the bankrupt financial institution is owed £15million from Hearts, two-third of the club’s total debt.

Given the bank holds a floating charge over the club’s assets, including Tynecastle Stadium, its choice of administrator was destined to succeed and the appointment went through without the need for a court hearing.

Once the paperwork is sent to the Scottish Premier League, Hearts will be automatically deducted a third of last season’s points tally, meaning they will start their campaign at St Johnstone on August 3 on -15 points.

BDO includes Bryan Jackson, the football administrator who is currently working to prevent Dunfermline from being liquidated, and in the past has been involved with Clydebank, Clyde, Motherwell and Dundee.

Fedotovas letter

A letter from Hearts director Sergejus Fedotovas sent out today claims that the club are on the ‘verge of transformation that will hopefully bring a new fortunes to Tynecastle [sic]’.

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The director goes on to say that recent events in Lithuania and the club’s lack of income were ‘not according to the most conservative plan’, citing Ubig filing for insolvency as a stumbling block.

Fedotovas adds that the club had been ‘honestly positive’ regarding the future, and that it had been hoped that ‘reasonably assessed season ticket sales’ would carry the club forward until the beginning of the new season.

The director signed off by thanking the staff for their ‘work and dedication’ to Hearts, adding that all they have done ‘will take its place in history’.