Tynecastle as Collateral

[Mon1875]

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VILNIUS, Jul 28, BNS - Heart of Midlothian, the owner of the Scottish football club Hearts, plans to pledge its Tynecastle Stadium in Edinburgh as collateral with its majority shareholder, Lithuanian-based Ukio Banko Investicine Grupe (Ukio Bankas Investment Group, or UBIG).

Heart of Midlothian plans to use the stadium, which is valued at 57.794 million litas (EUR 16.75 mln), to additionally secure the repayment of a loan provided by UBIG, the group said in an explanatory note to its 2009 financial statements filed with the Lithuanian Center of Registers.

UBIG holds an 81 percent stake in Heart of Midlothian.

In the document, UBIG did not give details as to the amount of the loan issued to the Scottish company, but said that the net value of the group's sports-related loans at the end of 2009 was 117.818 million litas and that the value of loans issued in Britain was 157.273 million litas.

The net value of all loans issued by UBIG as of late 2009 amounted to 264.193 million litas, up 19.7 percent compared with a year ago.

UBIG's shareholders at the end of 2009 included Vladimir Romanov with a 26.18 percent stake, Newfield Investors with 25 percent, Impexnet with 20.24 percent, Baltmet Holding with 13.97 percent, Kauno Tiekimas with 5.9 percent, and other shareholders with 8.71 percent.

(EUR 1 = LTL 3.45)

[MyJo]

It sounds to me like Hearts no longer own Tynecastle and they have given it to Ubig to pay of some of thier debt.

Its started.....

[Sergey]

In a nutshell, HoMFC Plc now don't have any assets other than the players. They've handed the deeds over to Lithuania.

[givescotlandfreedom]

That doesn't look good for them!

[soda70]

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VILNIUS, Jul 28, BNS - Heart of Midlothian, the owner of the Scottish football club Hearts, plans to pledge its Tynecastle Stadium in Edinburgh as collateral with its majority shareholder, Lithuanian-based Ukio Banko Investicine Grupe (Ukio Bankas Investment Group, or UBIG).

Heart of Midlothian plans to use the stadium, which is valued at 57.794 million litas (EUR 16.75 mln), to additionally secure the repayment of a loan provided by UBIG, the group said in an explanatory note to its 2009 financial statements filed with the Lithuanian Center of Registers.

UBIG holds an 81 percent stake in Heart of Midlothian.

In the document, UBIG did not give details as to the amount of the loan issued to the Scottish company, but said that the net value of the group's sports-related loans at the end of 2009 was 117.818 million litas and that the value of loans issued in Britain was 157.273 million litas.

The net value of all loans issued by UBIG as of late 2009 amounted to 264.193 million litas, up 19.7 percent compared with a year ago.

UBIG's shareholders at the end of 2009 included Vladimir Romanov with a 26.18 percent stake, Newfield Investors with 25 percent, Impexnet with 20.24 percent, Baltmet Holding with 13.97 percent, Kauno Tiekimas with 5.9 percent, and other shareholders with 8.71 percent.

(EUR 1 = LTL 3.45)

I have no idea, but it sounds bad......

Hey but nothing to see here... move on now.....

[bighairyfaeleith]

Basically UBIG can now take the stadium as soon as hearts default on loan payments which they can't afford.

I love being a hibby

Who are hearts playing tonight?

[iwasthere1972]

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I have no idea, but it sounds bad......

Hey but nothing to see here... move on now.....

I agree.

It's not all doom and gloom over at the pink palace as they have yet to bank the prize money for winning the Champions League last year?

[James70]

But at the end of the day they still just owe the money to themselves so they have nothing really to worry about, do they?

[cwilliamson85]

Basically Hearts are trying to refinance using the same people they are in debt to. So to get another loan to pay back the loan they already got they have to put collateral on the line to cover it as insurance.

Imagine you had a lot of debt and wanted to put it into one easy repayment you would have to put your house as collateral so the company would give you the cash.

[MyJo]

They owe the money to themselves so there is no need to worry about it, Im sure that giving thier only asset to thier debtors is some form of tax saving scheme because the debt that they owe themselves doesn't really need to be paid off, does it??

[PaulSmith]

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VILNIUS, Jul 28, BNS - Heart of Midlothian, the owner of the Scottish football club Hearts, plans to pledge its Tynecastle Stadium in Edinburgh as collateral with its majority shareholder, Lithuanian-based Ukio Banko Investicine Grupe (Ukio Bankas Investment Group, or UBIG).

Heart of Midlothian plans to use the stadium, which is valued at 57.794 million litas (EUR 16.75 mln), to additionally secure the repayment of a loan provided by UBIG, the group said in an explanatory note to its 2009 financial statements filed with the Lithuanian Center of Registers.

UBIG holds an 81 percent stake in Heart of Midlothian.

In the document, UBIG did not give details as to the amount of the loan issued to the Scottish company, but said that the net value of the group's sports-related loans at the end of 2009 was 117.818 million litas and that the value of loans issued in Britain was 157.273 million litas.

The net value of all loans issued by UBIG as of late 2009 amounted to 264.193 million litas, up 19.7 percent compared with a year ago.

UBIG's shareholders at the end of 2009 included Vladimir Romanov with a 26.18 percent stake, Newfield Investors with 25 percent, Impexnet with 20.24 percent, Baltmet Holding with 13.97 percent, Kauno Tiekimas with 5.9 percent, and other shareholders with 8.71 percent.

(EUR 1 = LTL 3.45)

Unless someone can tell me otherwise I'm not aware of any other UBIG sports related loans in the UK, therefore its fair to assume that Hearts owe UBIG £39m..which Tynecastle still doesn't cover.

[lapsedhibee]

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They owe the money to themselves so there is no need to worry about it, Im sure that giving thier only asset to thier debtors is some form of tax saving scheme because the debt that they owe themselves doesn't really need to be paid off, does it??

All successful companies give their assets away.

[Hibs Giant]

It's intersting hearing Jambo say that "we owe the money to ourselves". They are then (when saying "ourselves") referring to UBIG rather than HoM.
You know that football is in a business age when fans consider themselves as being part of a banking group.

[Sergey]

In another announcement today....UBIG sell off another sports complex as real estate for development.

Vilnius Land Sale

[Dr Jimmy]

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But at the end of the day they still just owe the money to themselves so they have nothing really to worry about, do they?

I love it when they spout that one.
Even if it was true they must be the only company that owes money to themselves yet charges a huge amount of interest for the loan they have given to themselves, thus increasing the debt they owe to themselves and therefore the interest payments they pay to themselves. Keep on believing fuds!

[iwasthere1972]

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All successful companies give their assets away.

I wouldn't call Tynecastle an asset. It's a bloody liability especially with all that asbestos and stands that are already fallen apart.

I like a good Derby but what the heck. Yams.

[GloryGlory]

So if the PBS is now collateral for the money owed to UBIG, when (if) Hearts new stand gets built, what are they going to use for collateral to finance the building work?

[CyberSauzee]

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Basically Hearts are trying to refinance using the same people they are in debt to. So to get another loan to pay back the loan they already got they have to put collateral on the line to cover it as insurance.

Imagine you had a lot of debt and wanted to put it into one easy repayment you would have to put your house as collateral so the company would give you the cash.

that's how loan sharks work isn't it?

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So if the PBS is now collateral for the money owed to UBIG, when (if) Hearts new stand gets built, what are they going to use for collateral to finance the building work?

http://www.oceanfinance.co.uk/

[HFC 0-7]

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Someone just posted this over on Kickback. What does it mean?



VILNIUS, Jul 28, BNS - Heart of Midlothian, the owner of the Scottish football club Hearts, plans to pledge its Tynecastle Stadium in Edinburgh as collateral with its majority shareholder, Lithuanian-based Ukio Banko Investicine Grupe (Ukio Bankas Investment Group, or UBIG).

Heart of Midlothian plans to use the stadium, which is valued at 57.794 million litas (EUR 16.75 mln), to additionally secure the repayment of a loan provided by UBIG, the group said in an explanatory note to its 2009 financial statements filed with the Lithuanian Center of Registers.

UBIG holds an 81 percent stake in Heart of Midlothian.

In the document, UBIG did not give details as to the amount of the loan issued to the Scottish company, but said that the net value of the group's sports-related loans at the end of 2009 was 117.818 million litas and that the value of loans issued in Britain was 157.273 million litas.

The net value of all loans issued by UBIG as of late 2009 amounted to 264.193 million litas, up 19.7 percent compared with a year ago.

UBIG's shareholders at the end of 2009 included Vladimir Romanov with a 26.18 percent stake, Newfield Investors with 25 percent, Impexnet with 20.24 percent, Baltmet Holding with 13.97 percent, Kauno Tiekimas with 5.9 percent, and other shareholders with 8.71 percent.

(EUR 1 = LTL 3.45)

The part I find intersting is that Vlad only owns 26.18% of UBIG. If the other shareholders dont like whats happening with UBIG lending to Hearts can they not just demand some proper repayment and stop lending to them?

So its not that they owe it to themselves they just owe to a company that Vlad has an interest in as well as several other companies and investors.

[GloryGlory]

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that's how loan sharks work isn't it?




http://www.oceanfinance.co.uk/

Yeah, but'll be an awfy wee stand, 'cos Ocean don't do £51M loans to the one applicant!

[CyberSauzee]

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The part I find intersting is that Vlad only owns 26.18% of UBIG. If the other shareholders dont like whats happening with UBIG lending to Hearts can they not just demand some proper repayment and stop lending to them?

So its not that they owe it to themselves they just owe to a company that Vlad has an interest in as well as several other companies and investors.

Looks like Vlad and his cohorts have set up a few subsidiary companies. Baltmet Holding was set up only last December, and Kauno Tiekimas lists the following as its "commercial activities":

Commercial activities: conventional and bonded warehouses for rent, rooms for rent, loading - unloading services, wholesale trade.

Sounds like Vlad is going into the wholesale trade like Arfur Daley.

[supershotmo]

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In another announcement today....UBIG sell off another sports complex as real estate for development.

Vilnius Land Sale

Love the Mis Bikini article on the page

[iwasthere1972]

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Yeah, but'll be an awfy wee stand, 'cos Ocean don't do £51M loans to the one applicant!

No idea what the maximum loan is or what their interest charges are but the Yams could do a lot worse than contact them.

http://i.acdn.us/image/A1527/152718/300_152718.gif

Must do better deals than Vlad and Co.

[Woody1985]

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The part I find intersting is that Vlad only owns 26.18% of UBIG. If the other shareholders dont like whats happening with UBIG lending to Hearts can they not just demand some proper repayment and stop lending to them?

So its not that they owe it to themselves they just owe to a company that Vlad has an interest in as well as several other companies and investors.

They could but I think they're using the 'throwing the good money after bad technique'.

You get people who invest in stocks and shares, say 1000 at £1 each (Hearts). The price drops to 50p and they've lost half their value. You get the optimists who think that it's a good idea to invest another £500 in the same shares and hope that it hits 75p so they can sell and get out even.

However, usually it ends up that there's only one way the share is going if it has such a steep drops. And that's down. They (Romanov / UBIG) could sell and cut their losses, which it doesn't look like they'll do. They're effectively 'stuck in' because they can't afford a huge loss on Hearts.

[7Hero]

post some replies from keekback please guys

[Toaods]

Attention all Yams - yer teas out..!!

[Caversham Green]

I think this is probably related to them moving the loan out of Ukio Bankas the bank as opposed to UBIG the group. The bank will have held the security prior to the move, and now the group has taken it over.

The devil is in the detail though. Of the £17.6m moved, only £5m went to the group and the rest went to "a company related to UBIG". That phrase is important, because it means that the company is not part of the group - if it was the note would have said so. That means that there would seem to be another £12.6m loan due on top of the £39m that PaulSmith mentions. I can't see how they could have racked that much up in the last year, but that's how it appears - how is the £/Lita exchange rate?

I'm also intrigued by how low Vlad's shareholding is - I wonder if he owns/controls some of the other shareholders mentioned. I also wonder if the "company related to UBIG" is taking the interest in cash rather than rolling onto the debt.

[Hal Jordan]

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What about a Hearts village, whereby the stadium site is sold to a UBIG holding company and housing is built on the land with UBIG creaming the profits.

Say 300 units at average £150k = 45 million = debt paid and say 8 million in bank after fees etc

These profits could then be used to fund a high quality stadium venture in conjunction with the govt, sports scotland, the lottery etc etc build a landmark stadium for the benefit of HMFC and the whole of scotland, make it world class!

You have to marvel at their optimism/lunacy.

[EskbankHibby]

It's the apathy of them that gets me.

Absolute proof that they no longer own the stadium, the very thing they hounded Robinson out for, and not a dissenting voice.

So used to taking the boaby from Romanov they would meekly accept anything, i genuinely think they would all work as labourers in the demolition of Tynecastle if "Mr" Romanov asked them and assured them it was a good idea.

[Peevemor]

I reckon they're getting things sorted out for when HoMoFC finally goes down the tubes. Say the Revenue, for example, were about to wind them up, is it not the case that if the property has been signed over as security, then the tax man can't touch it?

This wouldn't be the case if the paperwork wasn't in place.