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Hearts CVA agreed by creditors 2 December 2013

Creditors and members (shareholders) of embattled Scottish football club Heart of Midlothian have approved CVA proposals put forward by the administrators.

Parent company UBIG, a Balkan investment bank, abstained from the voting enabling the CVA to be passed on the votes of other creditors and shareholders.

However, the CVA is still dependent on “obtaining the 50% shares held by UBIG and concluding the sale and purchase agreement.”

Bryan Jackson, joint administrator and restructuring partner at BDO, said: “This is a good result for Hearts but we clearly have some way to go before this deal is concluded.

“It is positive that the creditors’ and members’ votes approved the CVA but we still have to obtain the 50% shares held by UBIG.

“We also have to conclude the sale and purchase agreement and complete this within a fixed time frame.”

Fan group Foundation of Hearts (FoH) have bid to obtain majority shareholding of the club, and Jackson said the CVA agreement is “an important step toward the ultimate goal of taking the club out of administration”.

Gintaras Adomonis, bankruptcy administrator of Ukio Bankas, Hearts’ largest creditor, said: “I should admit the fact that our decision has a substantial part of emotion in it.

“We are impressed by the efforts the fans of Hearts FC have put in the process and we were convinced that the CVA proposal was the best way to save the club.”

“Therefore Ukio Bankas voted for approval and will be looking forward to implementing the CVA if all the outstanding issues are sorted and positions clarified.”

By John Brazier

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