Administration-hit Hearts fear they could be evicted from Tynecastle as Lithuanian firm seek to appoint own administrators

Keith Jackson
18 Jun 2013 00:01

THE Gorgie side are concerned that they might lose their historic home if sibling company Ukio Bankas blocks the appointment of KPMG as administrators.
Tynecastle Stadium could be at risk Tynecastle Stadium could be at risk
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HEARTS fear they could be evicted from Tynecastle by Lithuanians if they lose a courtroom battle to appoint their own administrators.

Record Sport were first to reveal online yesterday that the capital club were about to be plunged into insolvency, with accountants KPMG on standby to lead the club through administration.

Hearts then confirmed papers were lodged at the Court of Session later in the day, with staff informed of the developments in an emotional address from chief executive David Southern at 4.30pm.

Around 130 people are now fearing for their livelihoods and bracing themselves for a savage round of redundancies. But late last night Record Sport learned of another potentially-devastating twist when it became clear sibling company Ukio Bankas will today attempt to block KPMG’s appointment – in a bid to have their own bean counters in charge.

The Lithuanian firm – run into the ground by Hearts’ absentee owner Vladimir Romanov – is going through its own insolvency process as part of the collapse of parent company UBIG.

But they have a claim on the stadium as security on a £15m loan, as well as a 29.9 per cent share holding in the company.

Lithuanian accountants UAB Valnetas, who are overseeing the affairs of the collapsed bank, had insisted they wanted Hearts to survive as a going concern before selling it on.

However, their aggressive move to stop KPMG from taking control has sparked fears of an attempted grab on the ground which has been home to Hearts for the last 127 years.

A source close to the club told us: “The latest news from Lithuania is a cause for concern. It has been a terrible day for everyone connected with the club and, most of all, the full-time staff who have battled so hard to keep this business afloat.

“It’s devastating the club is entering into administration and all the uncertainty which will follow. We are talking about real people and real lives here.

“Now there is a bigger concern about protecting the long-term health of one of Scotland’s greatest sporting institutions.

“Administration is upsetting enough but the fact that Ukio Bankas are trying to bring in their own people and block KPMG’s appointment has raised the level of concern.

“We’re talking about almost 140 years of history and a club which means so much to so many.

“This is not something to be toyed with. The next big battle will be to make sure KPMG are appointed and then we can feel a bit more confident about the club’s survival.”
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The stricken club employs 30 full-time staff with 64 part timers and a playing squad, including youths, of 36. The players were informed by text yesterday that their club was going under, while chief executive Southern gathered staff inside Tynecastle to break the news in person.

And while a sense of despair hung in the air there was also a feeling of anger and resentment towards the Lithaunians who have brought Hearts to the brink of oblivion.

Our source said: “There was a feeling of disbelief around the place – not so much because of the news but because not a single director was on site. Many of the people who have fought so hard to save this club looked around and wondered: Where are they? Where is Romanov?

“It shows you the lack of compassion these people have for the club and its staff. At the darkest hour they were nowhere to be seen.

“There is only a very small team of full-time staff behind the scenes and they have fought ?tirelessly to turn this ailing ship around. So when David Southern broke the news it was almost as if they had all given their last drop of breath.”

It now remains to be seen if more than 6,500 fans who have already stumped up for season tickets will have their deals honoured – or if they will simply be added to the list of creditors.

That decision will be taken by the administrators in conjunction with any possible buyers. Our source said: “These are our most loyal 6,500 fans. It would not make much sense for any potential buyer to risk alienating them by telling them the season tickets they bought now count for nothing.”

Taken from the Daily Record