Bankruptcy proceedings begin for Hearts' majority shareholders, UBIG

The future of Hearts last night became clearer still following the decision by the Lithuanian court to begin bankruptcy proceedings against UBIG.

The company, formerly owned by Vladimir Romanov, possess a 50% majority shareholding in the Tynecastle club and have effectively been insolvent since May 17 when it was announced they could not meet their financial commitments.

UBIG's assets were also frozen in April, making any discussions over acquiring their shares in Hearts – who last night defeated Crusuaders 2-0 in a pre-season friendly – a challenge for the club's administrators, BDO. It is essential that BDO attain both UBIG and Ukio Bankas' shares in Hearts, which amount to a combined 79.9%, before they can seek to push through a Company Voluntary Arrangement to exit the club from administration.

UBIG have 10 days to appeal the decision, which could delay dialogue between BDO and UBIG's liquidators, who are expected to be Lithuanian business recovery experts Insolvensa UAB. Bryan Jackson, Hearts' administrator, was last night seeking clarification over the situation and his ability to acquire the relevant shares.

He has also been poring over the bids for the club after the three interested parties – fans group Foundation of Hearts, HMFC Ltd, the company fronted by Bob Jamieson, and Angelo Massone's Five Stars Sports Ltd – submitted proof of funding this week. Copies of the bids have now been passed on to Valnetas UAB – Ukio Bankas' administrators, who represent Hearts' largest creditor.

Taken from the Herald