Hearts foundation boost as UBIG declared bankrupt

UBIG administration boost for Hearts Foundation.Picture: Ian Georgeson
UBIG administration boost for Hearts Foundation.Picture: Ian Georgeson
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Chairman Ian Murray is hopeful Foundation of Hearts are “slightly closer to the finishing line” after a Lithuanian court finally declared former club owners UBIG bankrupt yesterday and appointed administrators to the fallen investment company.

The move came as a welcome step ahead of the meeting of creditors on November 22 to consider a deal worth just over £3 million from preferred bidders FoH to bring the troubled Tynecastle outfit out of administration.

A second meeting with shareholders to discuss the Company Voluntary Arrangement will now take place a week later to allow Hearts’ administrators, BDO, more time to hold talks with their UBIG counterparts.

The court case to confirm UBIG’s bankruptcy had been postponed countless times, dating back to July, but remained significant due to the former parent company’s 50 per cent shareholding in Hearts.

The sale of Hearts could not be completed whilst UBIG, previously controlled by Vladimir Romanov, remained in limbo.

However, the Lithuanian Court of Appeals yesterday appointed the Vilnius-based UAB Bankroto Administravimo Paslaugos as administrators to UBIG, allowing BDO to begin discussions with them over the proposed takeover of the Gorgie club.

Bryan Jackson, Hearts’ joint administrator, said: “I can confirm that the Lithuanian Court of Appeals has announced the decision in the UBIG insolvency case to appoint UAB Bankroto Administravimo Paslaugos as administrator.

“I am glad that the uncertainty over the appointment has ended”.