Hearts Debt Levels Revealed by Administrator

The administrator for Hearts has released the level of debt the Edinburgh club owes to various organisations.

Claims by club creditors total to £28.4m ($43.2m) with the majority owed to Lithuanian companies that were owned by former club owner Vladimir Romanov.

Ukio Bankas is owed £15.5m ($23.5m) and hold the club’s Tynecastle Stadium as security against the debt, cheap sale although the value of the property is less than that amount, unhealthy at £13m ($19.8m).

Administrator BDO wants a revaluation of Tynecastle but no details will be released ‘so as not to prejudice the current sale’ of the club.

Shareholders Ukio Bankas and UBIG are owed around £24m of the debt, meaning exiting administration via a company voluntary arrangement (CVA) would be dependent on administrators’ approval.

BDO have said in a report to all creditors that rescuing Hearts through a CVA is the first objective.

Hearts have further debts of around £1.9m ($2.9m) to HM Revenue & Customs, £90,000 ($136,172) to Edinburgh Council, £34,000 ($51,651) to the Big Hearts Community Trust and £18,500 ($28,104) to the Scottish Police Authority.

The Scottish FA is owed £5,500 ($8,355) and a host of other clubs are owed money from transfers – Liverpool, Rangers, Ayr United, Kaunas, Musselburgh Athletic, Livingston, Stenhousemuir and Musselburgh Athletic included, totalling £535,000 ($812,617).

BDO are owed £227,000 ($344,792) for their administration fees, although they will not take any payment until everything is agreed with those who represent he Lithuanian firms.