Hearts to pay the price for Duff & Phelps
The crisis hit Edinburgh side had hoped to appoint KPMG as administrators today but that was blocked by the Lithuanian’s who are fearful of a cosy Duff & Phelps style operation likely to leave creditors penniless.
Ukio Bankas are owed £15m by Hearts and have security in the form of a floating charge over Tynecastle- the only worthwhile asset of the club.
By appointing their own administrators, BDO, Ukio Bankas can ensure that their interests are protected with no cut price deal to friendly hands to provide any Hearts newco with a home for next season.
The appointment of Duff & Phelps, backed by Craig Whyte, saw creditors in Rangers lose out with Ibrox Stadium and Murray Park sold for £5.5m then valued at £60m by Charles Green six months later.
In a statement to Press Association Sport tonight, Gintaras Adomonis of Lithuanian administrators UAB Valnetas, acting for Ukio Bankas, said: “We thoroughly analysed (the) financial and legal framework of Hearts’ case and, taking into account failure by Hearts to cover the debt to HMRC, it appeared that administration of the club is the only option available at the moment.
“We still believe that we should stay with our ultimate goal to defend the interest of the creditors of Ukio Bankas and sell the club to the appropriate investor as soon as possible.
“Thus, we want the administrator to be not only experienced but dedicated to football as well.”
Despite the troubles at Hearts neither the SPL or SFA have made any statement on their websites.
Tomorrow morning the fixtures for the new look SPFL will be announced with the shadow of administration and liquidation hanging over Hearts.
Should Hearts be liquidated it will create a gap in the top division which would probably be disputed for by Morton and Dundee- with a knock on effect throughout all the divisions.