Broken Hearts to file for administration

Hearts-have-filed-for-administration Hearts have filed for administration

The troubled capital club triggered the process by lodging application papers at the Court of Session in Edinburgh yesterday.

Hearts, who have debts of £25million, are believed to have approached accountancy firm KPMG to act as their administrators.

But the issue could be complicated as Hearts have very few assets – they don’t own their training ground or stadium.

The Jambos have been teetering on the brink since majority shareholder Ukio Bankas began liquidation processes in Lithuania.

Further warning signs emerged last week when the club confirmed they had run out of money again, there was no finance to pay the wages and their entire playing staff was put up for sale.

Hearts, who have debts of £25million, are believed to have approached accountancy firm KPMG to act as their administrators.

There are several interested parties in the club but nothing can be agreed until UBIG are officially put to the wall and the administrator can sell off their majority shareholding.

The club finally had to admit defeat when they were unable to pay an HMRC bill and have gone down the road of administration rather than being threatened with closure.

Gary Locke’s side are likely to start next season in the top flight with a 15-point penalty.

The administrator faces a battle to pull Hearts together with a large chunk of their shares held in Lithuania – after disgraced owner Vladimir Romanov bought the club in 2005.

He vowed to deliver Champions League football – which he did – but his promise to turn Hearts into a force that could challenge the Old Firm didn’t materialise, despite his lavish spending on the likes of Edgaras Jankauskas, Laryea Kingston, David Obua, Rudi Skacel, Marius Zaliukas and Andy Webster.

Hearts did win two Scottish Cups in his time but they came at a price as the club now struggles to stay afloat.

The club had hoped to become self-efficient by cutting the big earners – but that’s proved next to impossible, although senior officials had made out that they were fine, even signing Danny Wilson on a long-term contract from Liverpool.

That deal and his future are now up in the air.

This latest development is another kick in the teeth to the Hearts support, who coughed up £1million to buy shares to get the club to the end of the season.

There are several groups interested in the club, including the Foundation of Hearts and consortiums from the USA and Scandinavia.