FOUNDATION OF HEARTS today outlined the structure of their bid to take control of Hearts FC and stressed they have the required capital to succeed.
The Foundation is creating two separate entities, named BIDCO and FANCO, to work together with the aim of agreeing a Creditors Voluntary Arrangement (CVA).
That would allow Hearts to exit administration with the fans’ umbrella group as new owners.
BIDCO will be financially backed by local Edinburgh business figures, whilst FANCO represents the supporters behind the biggest fan ownership movement in Scottish football history.
Foundation officials will now enter crucial discussions with their investors aimed at increasing their cash CVA offer to Hearts’ creditors. Their last proposal was below the £3million mark and was rejected by administrators for the club’s biggest creditor, Ukio Bankas, who are owed £15m. Ukio Bankas’ administrators view £5m as an acceptable figure for a CVA and the Foundation will now prepare another offer.
Ian Murray MP, chairman of Foundation of Hearts, said today: “The bid team working on behalf of the Foundation will set up BIDCO to provide the capital resource to buy the club, backed by Edinburgh business.
“On agreeing contractual terms with BDO to acquire the club, the BIDCO/FANCO partnership will be created to deliver fan ownership in a controlled fashion. Doing so allows the club’s finances to be stabilised, and for there to be an orderly and calm transition to supporter ownership.
“The BIDCO/FANCO partnership delivers multi-layered protection both now and for the future of Hearts. It’s a win-win situation.”