• STV
  • MySTV

Hearts majority shareholder UBIG enters bankruptcy in Lithuania

Appointment of administrators to former parent company raises hopes of agreeing CVA.

GV of Hearts badge at Tynecastle Stadium.
SNS Group

The former parent company of Heart of Midlothian has begun bankruptcy proceedings in Lithuania – raising hopes of agreeing a CVA at the Edinburgh club.

Ukio Banko Investicine Grupe (UBIG) had administrators appointed by Kaunas District Court on Thursday after they signalled insolvency to the authorities in May.

The move was reported in Lithuanian news outlet Verslo Zinios.

Court public relations officer Gintare Vezelyte-Putnikiene is quoted: “UBIG has been declared bankrupt and a bankruptcy trustee has been appointed.”

The holding company, part of Vladimir Romanov’s collapsed business empire, had its assets frozen in April as the Russian-born banker was investigated.

That meant discussions between Hearts administrators, BDO, and UBIG could not take place until now.

UBIG holds the 50% stake in Hearts that will be key to the capital club exiting administration. UBIG is owed £10m by the Tynecastle outfit and will have to give their blessing to any cash settlement.

UBIG has ten days to appeal the appointment of UAB Insolvensa as administrators and Hearts joint administrator Bryan Jackson expects that could delay matters.

He said "I was told on Thursday that it is happening, but things aren't that straightforward. It will probably be appealed and that would mean it will be delayed.

"It does mean that the process has started though, so that is good news."

Ukio Bankas owns a 29.9% stake in Hearts, plus rights to Tynecastle Stadium, and is owed £15m. The bank is already undergoing bankruptcy proceedings.

BDO is sizing up three offers for Hearts, with fan-backed Foundation of Hearts believed to be leading the race.

Foundation chairman Ian Murray told STV that UBIG entering bankruptcy would provide clarity on Hearts’ future.

He said: “It’s bad news for UBIG but will provide some clarity around decisions on selling their shares in Hearts. The process is crystallising and that’s good news.”

Angelo Massone’s Five Stars Football is thought to have put up the largest sum to pay a CVA and remains in the race for the club.

The other bid, HMFC Ltd fronted by Bob Jamieson and backed from the United States, is understood to be the outside bet to gain control, and may drop out of the process in the next week.

One account. All of STV.

This field is required. That doesn't look like a valid e-mail format, please check. That e-mail's already in our system. Please try again.
ShowHide
Forgot password?
This field is required. This must be at least 6 characters long. Did you enter your details correctly?
If you've forgotten your details then use the 'Forgot password?' link.
Need to reset your password?

We'll send a link to reset your password to

We've sent you details on how to reset your password

Please check your email and follow the instructions.

Forgotten your email address?

Have you forgotten the email address that you previously joined with? Don't worry, by emailing enquiries@stv.tv we can help.

One account. All of STV.

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This must be at least 6 characters long.
ShowHide
This field is required. This must be at least 6 characters long.
You must be over 16 to join STV.
This field is required. This doesn't appear to be a valid date
We need this to check that you live in an STV region.
This field is required. This doesn't appear to be a valid postcode
Would you like us to email you about our great shows and services from time to time?
We'll only send emails we think you'll like (see example) based on information you have supplied and shows you have watched on STV Player. For details on emails and advertising, see our STV & You page.
Would you like to receive emails from the Scottish Children's Lottery about draws, instant games and competitions?
We support the Scottish Children's Lottery (SCL), which is managed by our colleagues at STV ELM Ltd. You can find out more about the SCL on its website, including its Privacy Policy.

By continuing you agree to our Terms of Use, and understand our Privacy and Cookie Policies.

Upload Profile Picture

Please make sure your image is under 2mb in size and a valid JPG, PNG or GIF.

Are you sure?

Unfortunately, you'll be unable to access our premium content. We’ll be sorry to see you go, but if you change your mind you can rejoin us at any time.

Please verify your STV account

Please verify your STV account using the email we sent you. If you have lost the email, we can send you another one, just click the button below.

Thanks

We've sent you a new verification email.
Please check your email and follow the instructions to verify your account.

Welcome to STV
Thanks for joining us.

Oops!

Sorry, you must be at least 12 years old to place a vote for your Real Hero.

Please review our Voting Terms of Use for more information.

Oops!

Sorry! It seems that you are using a browser that is incompatible with our voting service.

To register your vote please copy the below URL in to your regular mobile browser. We recommend Google Chrome, or Safari.

http://shows.stv.tv/real-heroes/voting

Oops!

Sorry, you seem to have already voted in this category.

Thanks for voting

Now share your vote with friends on your social network

Share on twitter Share on facebook

Cast your vote

Please register or sign in to continue.

Cast your vote

This field is required. This doesn't appear to be a valid date

Cast your vote

Please fill out this form to cast your vote. As you are under 16 years old you will not create an STV account. Why do we need these details?

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This field is required. That doesn't look like a valid e-mail format, please check.
Location This field is required.
Parental Consent This field is required.

That's you. All that's left is to click the 'Submit Vote' button below. By doing so, you confirm that you and your parent or guardian have read and accept our Voting Terms of Use, Privacy Policy and Cookie policy, and that the details you have entered are correct. We'll look after them as carefully as if they were our own.