Lithuanian liquidation goes ahead, but Hearts look safe meantime

The administrator of Ukio Bankas says he has "no reason or desire to harm Hearts" after a court in Lithuania upheld a decision to liquidate the bank.

The company - formerly controlled by Jambos owner Vladimir Romanov - is set to go bust following the decision by judges in Kaunas at the Court of Appeal of Lithuania.

Hearts owe the bank around £15million, leading to fears that club assets such as Tynecastle could be sold off to repay the debt.

But Gintaras Adomonis of accountancy firm UAB Valnetas has today insisted he intends to keep Hearts running as a going concern before selling it on.

In a statement, he said: "Ukio Bankas has now to deal with lots of debts and return the funds to its creditors.

"In the ongoing processes we must at all times consider the best interest of the creditors of Ukio Bankas.

"Hearts of Midlothian Plc is one of the companies indebted to the bank. There are several possible alternatives to dealing with this case but our initial assessment indicates that most likely the most extensive return for Ukio Bankas creditors may be achieved by keeping the club operating.

"For now we have no reason or desire to harm Hearts so our primary initiative, having solved the regulatory and other issues, is contemplated to be the sale of Hearts."

Ukio Bankas holds 29.9 per cent of club shares, with UBIG, the investment group in which Romanov still has a controlling interest, owning 50 per cent.

Adomonis' statement will come as a welcome boost to the troubled Edinburgh club, which still has the threat of a winding-up order hanging over its head after Her Majesty's Revenue and Customs threatened action over an unpaid £100,000 tax bill.

The tax concerns are the latest in a long line of financial sagas to have hit the club and left supporters fearing the worst.

The Gorgie side were only able to stave off a separate winding-up order launched by the taxman last December over a £450,000 tax bill thanks to the generosity of their fans.

Hearts chiefs bosses, meanwhile, were also forced to agree a repayment plan for a separate tax bill of more than £1.5million following a dispute over loan deals for players from FBK Kaunas.

The picture is not helped by the increasingly complex issue surrounding the state of the club's owners.

Hearts owe £25million in debt, £10million of which is due to their parent company UBIG - who have claimed insolvency - as well as the £15million due to Ukio Bankas.

The Scottish Premier League, however, ruled last month they were not satisfied UBIG had suffered an ''insolvency event'' during the season just gone, saving Hearts from a potential points deduction.

Taken from the Herald