Hearts administration: Creditors say CVA possible

HEARTS administrators BDO have been told by the club’s creditors to carry on with their efforts to agree a Company Voluntary Arrangement (CVA).

Bryan Jackson (left) and Peter Duff of BDO at the creditors meeting yesterday. Picture: SNS

The backing, secured at a creditors’ meeting held at Tynecastle yesterday, does not commit anyone to vote in favour of a CVA if or when one is proposed. But it is effectively a vote of confidence in BDO, and an acknowledgement by all parties – including major creditors Ukio Bankas and Ubig – that a CVA remains a possible route out of administration for Hearts.

BDO needed a simple majority of creditors to vote in favour of their proposal, and it is understood that no-one voted against. Only three local creditors turned up in person, while Ukio, Ubig and Her Majesty’s Revenue & Customs were represented by proxies.

The outcome of the meeting is seen by BDO as a small step forward, but an essential one. The main significance of the positive vote is its demonstration that Ukio administrators UAB Valnetas still believe that a CVA could be acceptable to them. At the end of last month, Valnetas threatened to liquidate Hearts if they did not receive better offers from the two groups – the Foundation of Hearts and Angelo Massone’s Five Stars Football Limited – which remain in the running to take over the club.