The creditors of Ukio Bankas were due to meet yesterday to vote on the CVA, which Ukio’s administrators agreed to late last year. But that meeting was postponed because some creditors wanted more information before proceeding to a vote.
However, the meeting is still expected to take place within the next ten days, and as long as that happens, the original schedule for completion will be adhered to.
That is because, even if the Ukio vote had gone through yesterday, Hearts would still be dependent on a similar vote by the creditors of Ubig, their major shareholders.
The Ubig meeting is due to be held on Monday, 7 April. If the CVA is approved, there will be a 20-day appeals period – something which also applies to the Ukio meeting. Ukio hold nearly 30 per cent of the shares in Hearts, while Ubig have just under 50 per cent. The consent of both is required before the CVA, proposed by Hearts administrators BDO, is accepted.
Any further delay beyond the end of April would have more serious consequences than yesterday’s postponement, as BDO would be in danger of running out of funds. If and when the CVA is completed, BDO could conclude the sale of the club to the Foundation of Hearts.