Scottish Heart Of Midlothian Administrators Open 'Tentative' Talks With UBIG
Scottish Premiership Heart of Midlothian administrators BDO "have opened 'tentative' talks with the insolvency firm in control of UBIG with just two days left to strike the deal which could save the club from liquidation," according to the SCOTSMAN. However, the stricken Tynecastle outfit has "still been given no indication how the fallen investment giant will vote at Friday’s creditors meeting." UBIG, Hearts’ majority shareholder with 49.9%, is currently "being run by Vilnius-based UAB Bankroto Administravimo Paslaugos after being formally declared bankrupt last week." The bid, which has been tabled on behalf of fans’ group Foundation of Hearts, is worth £2.5M ($4M). However, that fee "will be paid solely to Ukio Bankas, as the club’s only secured creditor." UBIG, on the other hand, is "effectively being offered nothing in return for their 'yes' vote." But, given its debt is effectively worthless, BDO is hopeful it "can be convinced to accept the terms" (SCOTSMAN, 11/20).