BDO Takes Charge As Scotland's Heart Of Midlothian Enters Administration
Accounting firm BDO has "been appointed as the administrators" of Scottish Premier League side Heart of Midlothian, as the club "formally entered administration" Wednesday, according to Angus Howarth of the SCOTSMAN. BDO "will take control of the financial affairs of the Tynecastle club two days after the club announced their intention to go into administration." Hearts "had hoped to appoint KPMG," but the administrators of its major creditor and part owner Ukio Bankas "objected and instigated the appointment of BDO" (SCOTSMAN, 6/19). The Scotland DAILY RECORD reported given the bank holds a floating charge over the club's assets, including Tynecastle Stadium, its choice of administrator "was destined to succeed and the appointment went through without the need for a court hearing" (DAILY RECORD, 6/19). In Edinburgh, Stuart Bathgate reported Foundation Chair MP Ian Murray warned Ukio administrator UAB Valnetas that there "would have to be a compromise over their twin desires to preserving Hearts as a going concern and defending the interests of Ukio’s creditors." Murray: "They did say that they wanted Hearts to be a going concern -- they have to protect what they have got. What do they have at the moment? They have a club in administration and a stadium worth £4M ($6M)." Murray also insisted that, while various other groups were said to be interested in bidding for Hearts, the Foundation "was the only one to state its aim in public" (SCOTSMAN, 6/19).
BEHIND IT ALL: STV reported former Stamford Bridge CEO Trevor Birch, who brokered the deal for Roman Abramovich's purchase of Chelsea for £140M in '03, is "expected to head up the operation to save Hearts in his capacity as an insolvency expert at BDO." He will be joined at Tynecastle by Scottish Second Division Dunfermline administrator Bryan Jackson (STV, 6/19).