Hearts Appoint KMPG As Administrator
Tue 18th Jun 2013 | Football Club Administration
Heart of Midlothian Football Club have served a notice of intention to appoint an administrator.
The Edinburgh club have been struggling financially following the threat of insolvency of owner Vladimir Romanov’s former businesses in Lithuania and have now served notice at the Court of Session in Edinburgh.
KMPG will act as administrator to the club who last week put the entire first team squad up for sale in a desperate bid to generate cash following the threat of action from HM Revenue and Customs over an unpaid £100,000 tax bill, although the majority of that sum has been paid.
Hearts also failed to pay its players on time this month drawing the Scottish Premier League (SPL) to enact an immediate transfer embargo under a Remuneration Default in terms of SPL Rules. The actions also indicate a potential breach of SPL rule A6.21 and a disciplinary hearing is expected to convene in due course.
Ukio Bankas, which has been declared bankrupt is understood to be owed £15m and the liquidator of the Lithuanian bank has been given permission to sell the 29.9% shareholding it has in Hearts as well as Tynecastle Stadium, which was held as security for the debt.
In addition, another £10m is due to the club's parent company, UBIG - which has close to 50% of the shares and is claiming insolvency.
Posted by: Aaron Gourley
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