The Press and Journal (Inverness, Highlands, and Islands)
Almost safe:
Bank agrees to transfer its shares in administration-hit club
Hearts are safe from the threat of liquidation after Lithuanian bank Ukio Bankas agreed to transfer its shares in the administration-hit Edinburgh club to a supporters’ group led by businesswoman Ann Budge.
Ukio Bankas – which held a 29.5% stake in the Jambos as well as security on their Tynecastle home – have agreed to sell their shares to Budge’s Bidco company in a £2.5million deal.
Millionaire IT specialist Budge will now become Hearts’ new chairwoman once the club exits administration next month but has vowed to hand ownership of the club to the Maroon supporters within five years.
Hearts went into administration last June with debts of c lose to £ 30million after former ow n e r Vladimir Rom a n o v ’ s Lithuanian business empire collapsed.
But with a deal to take possession of majority shareholder UBIG’s stake in the club already agreed by the club’s administrators BDO, Budge has agreed to front the money to pay off Ukio.
The Foundation of Hearts (FoH) supporter group and their 8,000 members will now set about raising finance to cover the club’s running costs as well as the money to pay back Budge.
“This is the beginning of a new era for Heart of Midlothian Football Club,” said the 66-year-old.
“I am confident together we can rebuild Heart of Midlothian FC to once again become one of the greatest clubs in the country.
“We are not across the line just yet but this is a very positive step and we are almost there.
“The end is now in sight and together I am confident we can achieve our target.”
The 10-month administration process has taken a major t o l l on the club both on and off the pitch.
Hearts were relegated from the Scottish Premiership after manager Gary Locke andhis players failed to recover from a 15-point penalty and transfer ban issued at the beginning of the season.
And there were fears the 140- year- old institution could even have been liquidated as the administration process for UBIG and Ukio – both insolvent themselves – dragged on. The share transfer, which once completed will allowHearts to exit administration via a Company Voluntary Arrangement, will also spare the club further footballing penalties ahead of next season’s Championship campaign.
FoH chairman Ian Murray, MP said: “This is fantastic news for the club and all the supporters who have, time after time, shown their support for the club.
“We still need to conclude the legal agreement but there is little doubt that today is the second most important day inthe recent history of the club.
“The most important day will be when we officially exit administration.”