The Questions The SPL (and Hearts fans) Should Be Asking........

[Mikey]

With an SPL enquiry looming and the Hearts AGM coming up shortly, these are the questions that should be asked of the Hearts board. The really awkward questions are in bold .....


...Why is the Auditors renumeration £121,000 when Hibs paid their Auditors £16,150 for the same service?


...Accounts note 11. - The debt due to UBIG (noted as £10 million) bears interest at 4.5% and is to be paid down at a rate of £ 20,000 per month starting April 2013. The interest alone on £10 million at 4.5 % is £37,500 per month please explain how this constitutes a repayment plan. Also, this agreement was noted as made in March 2013, all UBIG directors resigned in February so who made the deal?


...When did the transfer of debt to Ukio take place - if it was before 19 December why were the prospective shareholders not informed?


...Does Fedotovas stand by his comment in February that the arrangement with Ukio was only some banking and debt facilities and would not affect the operations of the club?


...Why did Fedotovas and the other directors resign from the board of UBIG?


...Are the board satisfied that the debt transfer was entirely above board and that no civil or criminal lawsuits will result from the bankruptcy of Ukio?


...Are the assets of UBIG still frozen - if so how do they propose to sell the club to new owners?


...Why did Hearts feel the need to publicly clarify the date that the season ends (19th May, not 1st June) if they have no intention of going into administration as soon as the season ends?


...How does the club plan to settle the £15m debt that's due in December 2015?


...Why was the required 21 days notice of the AGM not given?


...Why has the share offer not been registered at Companies House and why have no share certificates been sent out? What has happened to the money raised by the share issue?


...Item 23 of accounts states Hearts owe £ 506,000 to Ensco 165 Ltd. Ensco 165 Ltd was dissolved a couple of months ago. What happens to this debt?


...How much is needed from player sales for the projection to work and who are they going to sell?


...Have all staff been paid on time every month - not just the playing staff?


The SPL may ask these questions but you can be sure that Hearts fans won't!

Maybe the press should be trying to get answers too. Barry speak to David Southern on a regular basis.

[Gatecrasher]

This quote is hidden because you are ignoring this member. Show Quote

Maybe the press should be trying to get answers too. Barry speak to David Southern on a regular basis.

Well since the press seem to take half their stories from here maybe they will ask one or 2 of them

[Saorsa]

This quote is hidden because you are ignoring this member. Show Quote

Well since the press seem to take half their stories from here maybe they will ask one or 2 of them

allisbarry doesn't ask questions, he gets spun a load of old fanny that must never be deviated from and prints it.

[Treadstone]

This quote is hidden because you are ignoring this member. Show Quote

...How does the club plan to settle the £15m debt that's due in December 2015?

Think this should be bolded. ↑

As Caversham Green said in post #13364 in the 'Financial Meltdown' thread.

They really don't get it with that £15m debt. It's costing them £600,000 per year - that's a fifth of their claimed wages budget going on nothing - and on top of that they have to find £15m to repay it in just over two years because they sure as hell ain't getting any replacement finance for it.

[matty_f]

Weren't Ukio claiming a majority share in the Yams?

[Mikey]

This quote is hidden because you are ignoring this member. Show Quote

Weren't Ukio claiming a majority share in the Yams?

79% if I remember rightly. And they're already in administration.

Good point

[matty_f]

This quote is hidden because you are ignoring this member. Show Quote

79% if I remember rightly. And they're already in administration.

Good point

It's a fairly significant claim.

[bingo70]

I'm sure this is a stupid question but is the majority share holder always the parent company or is there any way ukios can have those shares but ubig still be parent company?

Surely if its as simple as that it should be a fairly easyinvestigstion for them? One question should see hearts relegated or is it not that simple?

[MacBean]

This quote is hidden because you are ignoring this member. Show Quote

Weren't Ukio claiming a majority share in the Yams?

Not strictly true. UBIG have pledged HMFC as security against borrowing from UB. UB can call that security in though if UBIG can't repay it... If that happens, UB will then hold 79% of HMFC.



Some brilliant questions in there, how about having them sent around the SPL clubs' directors. I'm sure a few of them are available from their respective websites.

[brog]

This quote is hidden because you are ignoring this member. Show Quote

With an SPL enquiry looming and the Hearts AGM coming up shortly, these are the questions that should be asked of the Hearts board. The really awkward questions are in bold .....


...Why is the Auditors renumeration £121,000 when Hibs paid their Auditors £16,150 for the same service?


...Accounts note 11. - The debt due to UBIG (noted as £10 million) bears interest at 4.5% and is to be paid down at a rate of £ 20,000 per month starting April 2013. The interest alone on £10 million at 4.5 % is £37,500 per month please explain how this constitutes a repayment plan. Also, this agreement was noted as made in March 2013, all UBIG directors resigned in February so who made the deal?


...When did the transfer of debt to Ukio take place - if it was before 19 December why were the prospective shareholders not informed?


...Does Fedotovas stand by his comment in February that the arrangement with Ukio was only some banking and debt facilities and would not affect the operations of the club?


...Why did Fedotovas and the other directors resign from the board of UBIG?


...Are the board satisfied that the debt transfer was entirely above board and that no civil or criminal lawsuits will result from the bankruptcy of Ukio?


...Are the assets of UBIG still frozen - if so how do they propose to sell the club to new owners?


...Why did Hearts feel the need to publicly clarify the date that the season ends (19th May, not 1st June) if they have no intention of going into administration as soon as the season ends?


...How does the club plan to settle the £15m debt that's due in December 2015?


...Why was the required 21 days notice of the AGM not given?


...Why has the share offer not been registered at Companies House and why have no share certificates been sent out? What has happened to the money raised by the share issue?


...Item 23 of accounts states Hearts owe £ 506,000 to Ensco 165 Ltd. Ensco 165 Ltd was dissolved a couple of months ago. What happens to this debt?


...How much is needed from player sales for the projection to work and who are they going to sell?


...Have all staff been paid on time every month - not just the playing staff?


The SPL may ask these questions but you can be sure that Hearts fans won't!

Maybe the press should be trying to get answers too. Barry speak to David Southern on a regular basis.

These are all great questions but surely #1 must be, " Who currently owns HMFC? " Other questions re relationship with UKIO/UBIG & Vlad himself can follow on from there.

[josef k]

Great work by Mikey. These questions need to be publicized - on other football forums (Dundee one? pie and bovril), forwarded to journalists, to the SPL itself, SPL clubs and to interested blogers (Scots law etc). It was mainly the work of Celtic fans that brought down Rangers. There is work to do!

[Sergey]

Great questions - but who'll answer them?

Vlad won't attend - Roman daren't after his last appearance and Fedotovas will cite 'more pressing business'. That leaves the sock-puppet and master of spin, Southern who'll once again trot out the 'No Tanks in Baghdad' line.

[Mikey]

This quote is hidden because you are ignoring this member. Show Quote

Great questions - but who'll answer them?

Vlad won't attend - Roman daren't after his last appearance and Fedotovas will cite 'more pressing business'. That leaves the sock-puppet and master of spin, Southern who'll once again trot out the 'No Tanks in Baghdad' line.

Quite simple. If they can't provide answers they're hiding something

[Treadstone]

This quote is hidden because you are ignoring this member. Show Quote

Great questions - but who'll answer them?

Vlad won't attend - Roman daren't after his last appearance and Fedotovas will cite 'more pressing business'. That leaves the sock-puppet and master of spin, Southern who'll once again trot out the 'No Tanks in Baghdad' line.

Shouldn't the question be who'll ask them ?

[leithsansiro]

All of those questions seem redundant. Wouldn't "When will HMFC just throw in the towel and admit defeat?" be more appropriate and relevant?

[JeMeSouviens]

This quote is hidden because you are ignoring this member. Show Quote

...Why did Hearts feel the need to publicly clarify the date that the season ends (19th May, not 1st June) if they have no intention of going into administration as soon as the season ends?

I doubt they actually want to go into administration. As has been well documented by Caversham and CWG they have next to **** all chance of coming back out again. It'll be the bankruptcy of UBIG, which must only be a matter of time, that's going to tip them over the edge.

Really looking forward to them having a season of torture under the assured command of the Showerboy and then being liquidated at the end of it.

Hopefully the final derby scorecard will have Hibs 8 not out. I suspect we'll eventually be able to set records in the new Hibs-MaroonSevco derby in a few years' time.

[greenlex]

If Hearts go into Admin and UBIG follow say 3 months later do they get a double whammy points deduction? Tell me its so!

[steviehibsleith]

Accounts note 11. - The debt due to UBIG (noted as £10 million) bears interest at 4.5% and is to be paid down at a rate of £ 20,000 per month starting April 2013. The interest alone on £10 million at 4.5 % is £37,500 per month please explain how this constitutes a repayment plan


Maybe one of our Financial guru team can expand on this - There is no time period shown so maybe they just plan on repaing £20,000 for double the time.

If not the case then surely no accountancy firm should have signed off on the accounts as its blatant rubbish/fraud. In fact £2500 short of 100 percent wrong.

[ballengeich]

This quote is hidden because you are ignoring this member. Show Quote

Accounts note 11. - The debt due to UBIG (noted as £10 million) bears interest at 4.5% and is to be paid down at a rate of £ 20,000 per month starting April 2013. The interest alone on £10 million at 4.5 % is £37,500 per month please explain how this constitutes a repayment plan


Maybe one of our Financial guru team can expand on this - There is no time period shown so maybe they just plan on repaing £20,000 for double the time.

If not the case then surely no accountancy firm should have signed off on the accounts as its blatant rubbish/fraud. In fact £2500 short of 100 percent wrong.

Could it mean they have to repay capital of £20,000 per month in addition to the interest?

[matty_f]

This quote is hidden because you are ignoring this member. Show Quote

Accounts note 11. - The debt due to UBIG (noted as £10 million) bears interest at 4.5% and is to be paid down at a rate of £ 20,000 per month starting April 2013. The interest alone on £10 million at 4.5 % is £37,500 per month please explain how this constitutes a repayment plan


Maybe one of our Financial guru team can expand on this - There is no time period shown so maybe they just plan on repaing £20,000 for double the time.

If not the case then surely no accountancy firm should have signed off on the accounts as its blatant rubbish/fraud. In fact £2500 short of 100 percent wrong.

If it's costing more in interest than they're repaying then the debt will be larger the longer they make payments. They need to repay more than the interest to make any kind of dent into the debt.

[PapillonVert]

According to attached report on the BBC, at least four clubs have asked the SPL to clarify Hearts' financial situation but have been rebuffed with the SPL claiming no breach of the rule about group insolvency.

http://www.bbc.co.uk/sport/0/football/22514070

Looks like the SPL has taken on the persona of the 3 "wise" monkeys!

How do they know there is no group insolvency, i.e. how can they just come out and say that without a proper investigation?

PS The first part of report is about UKIO appeal but the info. about the clubs enquiring about the HMFC finances is a bit further down.

[Sergey]

This quote is hidden because you are ignoring this member. Show Quote

Shouldn't the question be who'll ask them ?

#allisbarry

[Caversham Green]

I'd also be asking questions about the proposed membership scheme that according to the accounts is vital to the club's survival:

1. How much is needed according to the projections?
2. Is this the Foundation of Hearts scheme or another one proposed by the current regime?
3. If it is the FoH scheme, does it need a change of ownership to succeed? (if it doesn't then FoH are being less than honest about their intentions and are working hand in hand with the current regime. It also throws a new light on the timing of Ian Murray's e-mail about starting to collect pledges. If it does then the statements in the accounts is incomplete and misleading)
4. If it isn't the FoH scheme, what is the proposal and how is it intended to work?
5. If it isn't the FoH scheme, why has nothing been publicised about it? (The accounts are dated 8th April but weren't published until 11th May - despite the covering letter being dated 30th April. 11th May was therefore the first time anyone had heard of the scheme despite it having been formulated at least five weeks earlier.)
6. Were the auditors expecting a delay of six weeks or more in launching the scheme when they signed off the accounts?

[Hibercelona]

Pretty straight forward question really.

"Will Hearts be going into Administration next season?"

[Saorsa]

This quote is hidden because you are ignoring this member. Show Quote

Pretty straight forward question really.

"Will Hearts be going into Administration next season?"

No! No! No! they are now a viable self-sustaining business #allisbarry

[Treadstone]

First question at AGM "how far along are we on the Boyd and Goodwillie deals ?"

Expect more positive (and bogus) stories on the run up to it as well.

[JeMeSouviens]

This quote is hidden because you are ignoring this member. Show Quote

I'd also be asking questions about the proposed membership scheme that according to the accounts is vital to the club's survival:

1. How much is needed according to the projections?
2. Is this the Foundation of Hearts scheme or another one proposed by the current regime?
3. If it is the FoH scheme, does it need a change of ownership to succeed? (if it doesn't then FoH are being less than honest about their intentions and are working hand in hand with the current regime. It also throws a new light on the timing of Ian Murray's e-mail about starting to collect pledges. If it does then the statements in the accounts is incomplete and misleading)
4. If it isn't the FoH scheme, what is the proposal and how is it intended to work?
5. If it isn't the FoH scheme, why has nothing been publicised about it? (The accounts are dated 8th April but weren't published until 11th May - despite the covering letter being dated 30th April. 11th May was therefore the first time anyone had heard of the scheme despite it having been formulated at least five weeks earlier.)
6. Were the auditors expecting a delay of six weeks or more in launching the scheme when they signed off the accounts?

Fantastic - they'll have spent this year's ST money, time to fleece the muppets ... again!

[Caversham Green]

This quote is hidden because you are ignoring this member. Show Quote

Also, this agreement was noted as made in March 2013, all UBIG directors resigned in February so who made the deal?

Sorry for reviving an old yams thread but the AGM is on Thursday and this question takes on much more significance with the apparent insolvency of UBIG. A company without directors can't legally function, but according to the accounts UBIG agreed to refinance this loan when no-one had the authority to act for them. Given that the directors who had resigned from UBIG were also directors of HoMFC, they cannot claim ignorance of UBIG's status. Furthermore, HoMFC were insolvent at the time, being unable to meet this debt as it fell due in December 2012, so this looks like a wilful transfer of insolvency onto a powerless company. In short it looks like HoMFC has committed a fraud to the tune of £10m. The transfer of £15m debt to Ukio is not as clear-cut as this, but it does look decidedly dodgy as well. No doubt this will be looked at by the respective administrators, but I really do feel the HoMFC shareholders should be seeking clarification here - I certainly would be if this was Hibs we were talking about.

[Treadstone]

This quote is hidden because you are ignoring this member. Show Quote

Sorry for reviving an old yams thread but the AGM is on Thursday and this question takes on much more significance with the apparent insolvency of UBIG. A company without directors can't legally function, but according to the accounts UBIG agreed to refinance this loan when no-one had the authority to act for them. Given that the directors who had resigned from UBIG were also directors of HoMFC, they cannot claim ignorance of UBIG's status. Furthermore, HoMFC were insolvent at the time, being unable to meet this debt as it fell due in December 2012, so this looks like a wilful transfer of insolvency onto a powerless company. In short it looks like HoMFC has committed a fraud to the tune of £10m. The transfer of £15m debt to Ukio is not as clear-cut as this, but it does look decidedly dodgy as well. No doubt this will be looked at by the respective administrators, but I really do feel the HoMFC shareholders should be seeking clarification here - I certainly would be if this was Hibs we were talking about.

Jeezo.

When the dust settles surely criminal charges will be brought. Nuremberg defence not applicable here.

[Caversham Green]

This quote is hidden because you are ignoring this member. Show Quote

Jeezo.

When the dust settles surely criminal charges will be brought. Nuremberg defence not applicable here.

Almost certainly, and the UBIG administrator might well seek to reverse the loan extension and call in the loan immediately - which would close HoMFC down. So, will the shareholders ask about this or is there still a dull lightbulb in the main stand?