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UPDATED: Broken Hearts enter administration 19 June 2013

Embattled football club Heart of Midlothian have entered administration today following a dispute over which administrator would be appointed.

Bryan Jackson, James Stephen, and Trevor Birch of BDO have been appointed joint administrators to the Edinburgh club.

Jackson said: “Fans will, inevitably, be concerned about these developments and none of them will have wanted this moment to arrive.

“We will now undertake an urgent examination of the company’s records prior to making any further announcements.

“We are acutely aware of the need for speed in this process given the uncertainty of the last few weeks and the proximity of the season’s start. We will be talking to all the parties that have shown
interest in the club in order to find a resolution as quickly as possible.”

KPMG had been nominated by the club’s directors as preferred administrators, following the handling of the clubs notice of intent to file for administration on Monday.

However, BDO were appointed by the Edinburgh Court of Sessions at the request of AB Ukio Bankas, which is itself in administration and a major creditor of the club with a floating charge over the assets.

Hearts have debts of £25m – £10m of which is due to their parent company, UBIG, which is claiming insolvency.

The club also owes £15m to Ukio Bankas, which was declared bankrupt this month, although a club statement last week said there is “goodwill with Ukio Bankas”.

The Lithuanian bank has been given permission to sell the 29.9% shareholding it has in Hearts as well as Tynecastle Stadium, the clubs ground, which was held as security for the debt.

HMRC threatened the club with a winding up order last week over an unpaid £100,000 tax bill, although the majority of that sum has now been paid.

Six potential buyers have confirmed interest in the club, although its complicated structure has so far hindered any developments.



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