Hearts upbeat as £10m debt removed

Hearts director Sergejus Fedotovas believes the club's fortunes are looking up on and off the park after £10 million was effectively wiped from the club's debt yesterday.

At an extraordinary general meeting called for shareholders at Tynecastle, a speedy resolution of the "debt-for-equity" plan was achieved. Indeed, the matter was rubber-stamped inside 14 minutes.

After the rousing 2-0 win over Celtic on Wednesday night and Sunday's derby success at Hibs, the feel-good factor around the Gorgie club continued.

A small contingent of shareholders assembled in the Gorgie Suite at noon to approve the plans of owner Vladimir Romanov to convert money owed into ordinary shares. Most had voted by proxy.

The move follows a similar plan in 2008, when the debt was reduced by 12m, as Hearts seek to become a more cost-effective business, lowering grand designs of the past.

With the SPL club's last reported debt standing at 34.78m to July 2009, that figure has been lowered by 10m - at least until the next accounts are published.

Given Ukio Bankas Investment Group (UBIG) controls 95.07% of the existing ordinary shares, the Lithuanian-based bank has increased its total share to 98% after the plan was given the green light.

The move also strengthens Hearts in preparation for UEFA's pending regulations regarding clubs in Europe. European football's governing body announced in May that, by 2014, clubs playing in its competitions would, over a three-year period, be expected to spend no more than they earn.

Fedetova said: "Step by step, we are moving in the direction of lowering the debt levels at the club, to be compliant with UEFA requirements and have a more sustainable business model."