Bleak Warning for Hearts as Administrator Rejects Offers for Club

July 30, 2013

Hearts have been warned that they face liquidation after administrators rejected offers for the Edinburgh club.

The club’s main creditors Ukio Bankas are owed £15m from the club and their administrator Gintaras Adomonis has rejected three unacceptable bids.

Hearts administrators BDO have been told by Adonomis to continue their negotiations with fans’ group the Foundation of Hearts and Five Stars Football Ltd.

Adomonis said: “I can repeat that we are doing everything we can to save the club functioning. However, I am obliged to protect solely the interests of Ukio Bankas and its creditors.

“If no feasible offer with terms and conditions acceptable to Ukio Bankas creditors is achieved, Ukio Bankas will remain with the only solution – liquidation of Hearts of Midlothian Plc and enforcement of the standard security over Tynecastle stadium. I sincerely hope this is the way of things we still can avoid.”

A third offer from HMFC Ltd has been rejected completely.

Adomonis added: “Hearts administrator BDO received three offers from investors, none of which were acceptable.

“Last week the potential investors presented improved offers, however, the main creditor’s expectations were still not met. Ukio Bankas approved the administrator’s proposal to continue negotiations with the two potential investors.”

Ian Murray MP, independent chair of the Foundation of Hearts, said: “Our bid team, working on behalf of the Foundation of Hearts continues to negotiate on the points of the bid submitted on our behalf to BDO.

“Meetings are scheduled for this week, and have been since our revised bid and proof of funding was submitted last Wednesday, as requested. It’s very muchbusiness as usual.

“We remain hopeful that we can demonstrate to the club’s creditors that our proposal provides the strongest return and carries the lowest risk, in short by far the best solution.

“This announcement from Lithuania does again, however, demonstrate the need for supporters to set up direct debits via, if they can do so.”