Hearts administration: UBIG enters bankruptcy

HEARTS moved a step closer to resolving their future today as it was reported that the Lithuanian courts had begun bankruptcy proceedings against UBIG.

The club’s former parent company and a secured creditor has been declared bankrupt and administrators appointed by the court, although Hearts’ administrators, BDO, are still waiting for official confirmation. UBIG now has a ten-day period in which to appeal the decision but, should the liquidation go through, it would mean that BDO can finally access UBIG’s 50 per cent shareholding in the Tynecastle club.

The Lithuanian bank has technically been insolvent since May after announcing that they could not meet their financial commitments. Since taking on Hearts’ affairs last month, BDO have been restricted in what they could do, but with the latest developments in Lithuania, they are now a step closer to agreeing a CVA.

BDO are currently working with the three parties interested in taking control of Hearts – Foundation of Hearts, HMFC Ltd and Five Stars Football Ltd – although it still may take some time before a preferred bidder is named.

All three submitted improved bids on Wednesday. Administrator Bryan Jackson said: “I have discussed the three offers with our Lithuanian administrators and they are going to consider them further and will give me instruction in how to proceed in the next few days.”