Hearts Finally in Administration but UK Consortium Lodge Takeover Bid

Stricken Scottish Premier League (SPL) club Hearts have officially been placed in administration after months of financial woe.

The Edinburgh based team had faced a winding-up order from HMRC for unpaid tax bills, failed to pay their players and staff on time and have seen majority shareholder UBIG, who own a 50% stake in the club and Ukio Bankas, who have a 29.9% share in club, on the cusp of insolvency.

Hearts directors had requested KPMG be appointed administrators but Ukio Bankas and Ukio Bankas Investment Group wanted BDO, a wish they have been granted.

Bryan Jackson and Trevor Birch of BDO will be in charge of the operation.

Hearts will begin the 2013-14 SPL campaign with minus 15 points and have also transfer-listed every member of their squad in an attempt to raise funds.

UK consortium offer hope?

Earlier on Wednesday a UK-based consortium of six wealthy businessmen lodged a takeover bid for the club.

Their bid included a draft Creditors’ Voluntary Arrangement to help the Tynecastle side out of administration.

They are fronted by Edinburgh businessmen Stephen Paterson and Fraser Kerr of Haines Watts accountants, but the consortium wishes to remain anonymous at this stage.

Paterson said: “We are acting for clients who don’t wish to be named at this moment but they are Hearts-minded.

“The bid is for everything, it’s not about splitting the ground from the team or anything. We want the club, the players, the ground, everything.

“The Lithuanian administrator has indicated he will vote for our CVA, albeit with a 15-point penalty for Hearts for entering administration.

“It is up to the administrator at Hearts to go through that process. Our bid is predicated on a CVA happening.”