Share Transfers Agreed/Cooling off period

[Sanger]

From Sky Sports News:
“The administrator of Ukio Bankas insists he will not 'harm Hearts' after a court in Lithuania upheld a decision to liquidate the bank.
Hearts owner Vladimir Romanov formerly controlled the company, which is set to go bust, but Gintaras Adomonis of accountancy firm UAB Valnetas plans to keep Hearts running as a going concern before selling it on.
Ukio Bankas holds 29.9 per cent of club shares, while Romanov still has a controlling interest in investment group UBIG, who own 50 per cent. (Sky neglects to mention that Ukio Bankas have a claim on the 50% against UBIG debts to them)
Adomonis said: "Ukio Bankas has now to deal with lots of debts and return the funds to its creditors.
"In the ongoing processes we must at all times consider the best interest of the creditors of Ukio Bankas.
"Hearts of Midlothian Plc is one of the companies indebted to the bank. There are several possible alternatives to dealing with this case but our initial assessment indicates that most likely the most extensive return for Ukio Bankas creditors may be achieved by keeping the club operating.
"For now we have no reason or desire to harm Hearts so our primary initiative, having solved the regulatory and other issues, is contemplated to be the sale of Hearts."
This statement eases some of the financial concerns about the troubled Edinburgh club, but it still faces the threat of a winding-up order over an unpaid £100,000 tax bill.
Hearts staved off a separate winding-up order last December over a £450,000 tax bill thanks to the generosity of their fans, while the club agreed a repayment plan for a separate bill of more than £1.5m following a dispute over loan deals for players from FBK Kaunas.”
My Comment
The administrators will be looking to sell HMFC as whole including Tynecastle but plus the debt to HMRC. So will be looking for around £10 million. The buyers must have money to on top of that to pay off HMRC and run the club until next season (2014/2015) season ticket money comes in as the bulk of 2013/2014 has likely been spent. This clearly riles out FOH. I don’t believe any other consortium or individual will want to or have the funds to do so either. Looks like a break up with sale of the ground and club separately.

[Gus Fring]

I'm getting a wee bit obsessed watching this Jamie guy on twitter now, how is he able to get answers out of Barry and the rest of us can't? He's just spent the last hour getting quizzed by the sickback account. His latest answer nearly made me choke on the pastille I was eating

JambosKickback @jamb0skickback


@TheJamieRyan Do you know the name of the UBiG director named on request for insolvency in Lithuania?


His replies


Jamie Ryan @TheJamieRyan


@jamb0skickback It was either Rita Matūzienė or Paedophilius Convictedov? I always forget which one. I'll go with Rita


Jamie Ryan @TheJamieRyan


@jamb0skickback Next question please. This time I'll take "arbitrary questions about Hearts" for 500 please Alex.

[Haymaker]

Are the assests now unfrozen? I thought they were under investigation by the Government re money laundering? Surely they wont want them flogged off.

[Gus Fring]

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Are the assests now unfrozen? I thought they were under investigation by the Government re money laundering? Surely they wont want them flogged off.

Nope, still frozen. The bolded part is the relevant part. The assets weren't frozen as some procedural thing AFAIK, they were frozen because they think Vlad is dodgy and they don't want everything being scattered about in a fire sale before they get a chance to find out what he's been upto. It's the financial equivalent of declaring somewhere a crime scene. Nothing moves without explicit consent.

As an aside, is the correct term unfrozen or defrosted? (Genuinely wondering as I'm not sure).

[Treadstone]

Some of these media types really get things wrong. All we need now is Neil Patey to jump in with his wellies and spout a lot of guff.

[jacomo]

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Nope, still frozen. The bolded part is the relevant part. The assets weren't frozen as some procedural thing AFAIK, they were frozen because they think Vlad is dodgy and they don't want everything being scattered about in a fire sale before they get a chance to find out what he's been upto. It's the financial equivalent of declaring somewhere a crime scene. Nothing moves without explicit consent.

As an aside, is the correct term unfrozen or defrosted? (Genuinely wondering as I'm not sure).

Thawed?

[HibbyAndy]

Hearts fans a ken arnae bothered.

They hink a 15 point deduction will be clawed back by christmas and thats them back tae normal.

[God Petrie]

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Hearts fans a ken arnae bothered.

They hink a 15 point deduction will be clawed back by christmas and thats them back tae normal.

For anyone winding up jambos during these enjoyable times, remember they will defy logic and even their own opinions to avoid losing any ground to a "Hobo". Play on this and you will enjoy the riches of a confused jambo desperately trying to one up their classier, better run, sustainable rivals.

[Aldo]

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Hearts fans a ken arnae bothered.

They hink a 15 point deduction will be clawed back by christmas and thats them back tae normal.

They only won 11 games last season. So with the deduction and winning a further 6 and heay presto 18 points. Dear dear

[Hibs7]

Another first for Hearts .... First club to be relegated from the SPFL :-)

[Treadstone]

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I'm getting a wee bit obsessed watching this Jamie guy on twitter now, how is he able to get answers out of Barry and the rest of us can't? He's just spent the last hour getting quizzed by the sickback account. His latest answer nearly made me choke on the pastille I was eating

JambosKickback @jamb0skickback

Nice wee read for ten minutes. Brokeback got his arse handed to him and finishes off with words to the effect of "knows everything about us".

[Caversham Green]

As I've said previously, the liquidation is likely to take a considerable time because of the potentially criminal activities that have taken place and the disappearance of Vlad and resignation of the UBIG board. That means the liquidator has no reason to call in the £15m debt in a hurry. In fact he is better keeping it going since HoMFC are paying him £50k per month and will still owe the full £15m until it falls due in December 2015 (he's unlikely to have finished the liquidation by then in any case).

On top of that he has no power to sell HoMFC because Ukio don't own them. He has a call on a 29.9% shareholding owned by UBIG as security on UBIG's debt to Ukio but he would have to put UBIG into administration before he could take any action with that, and then UBIG themselves will still have 49.9% of the shares to sell to a new owner.

Of course the liquidator wants to keep HoMFC alive so long as they stick to the loan agreement - they're paying a big chunk of his fees apart from anything else - but really this changes very little.

Here's a thought though. Quantum Holdings SA, owned and run by Vlad's niece, owns 15% of HoMFC's shares. Now as I understand it, anyone obtaining a shareholding of 30% or more in a plc has to offer to buy the remaining shares at the same price so FoH or whoever else does buy HoMFC from UBIG will have to offer a further sum to Quantum. Vlad's niece has just resigned from the HoMFC board - I wonder why.

[Treadstone]

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As I've said previously, the liquidation is likely to take a considerable time because of the potentially criminal activities that have taken place and the disappearance of Vlad and resignation of the UBIG board. That means the liquidator has no reason to call in the £15m debt in a hurry. In fact he is better keeping it going since HoMFC are paying him £50k per month and will still owe the full £15m until it falls due in December 2015 (he's unlikely to have finished the liquidation by then in any case).

Its for this very reason to me that FoH almost certainly have no chance of taking over. They ideally (and i'm not surprised) would like the club debt free. There is no chance of them keeping the repayments going and then being liable for the full amount two years down the road. No chance of refinancing this either. The liquidator can sit on this as CG says for two years be £1m+ to the good and be in the same (or better, property prices) position as now.

I'd like to know the strategy for FoH thinking they can get in debt free and owning Swynecastle with exactly zero resting in their bank account.

Unless Rolland is doing the accounts.

[grunt]

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Here's a thought though. Quantum Holdings SA, owned and run by Vlad's niece, owns 15% of HoMFC's shares. Now as I understand it, anyone obtaining a shareholding of 30% or more in a plc has to offer to buy the remaining shares at the same price so FoH or whoever else does buy HoMFC from UBIG will have to offer a further sum to Quantum. Vlad's niece has just resigned from the HoMFC board - I wonder why.

Interesting...

[Mango Man]

Just get the feeling they will somehow worm their way out of all this, they are jammy buggers.

[Leithenhibby]

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Just get the feeling they will somehow worm their way out of all this, they are jammy buggers.

No danger whatsoever ...................

[bingo70]

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Just get the feeling they will somehow worm their way out of all this, they are jammy buggers.

Have you seen there squad for next season? They're already not getting away with it.

[chrisski33]

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Just get the feeling they will somehow worm their way out of all this, they are jammy buggers.

Totally agree. Lot of talk on here on her on what could happen where in reality noone knows even hearts themselves!

[Leithenhibby]

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Totally agree. Lot of talk on here on her on what could happen where in reality noone knows even hearts themselves!

I think they know the game is almost up................

[bingo70]

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Totally agree. Lot of talk on here on her on what could happen where in reality noone knows even hearts themselves!

No, people saying what could happen are clearly folk that know what they're talking about, you're just choosing to ignore them, probably because its not happening as fast as you wanted.

[monktonharp]

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Thats my hope too! Then in their final years they can all sit in their pish stained breeks in a wee corner of a pub nursing a nip and half pint whilst harking back to 19/5/12 whilst their grandkids go about the business of supporting the only team in the capital!

that's probably the one for me mate.far too many years of suffering their smugness, despite our sheer bad luck at times, and their sheer good luck! but, what's gonnae happen to the Diggers, viet-nam bar, Robertson's, Tyncastle bar etc? end of an Era, sad to see it go this way eh?

[Saorsa]

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No, people saying what could happen are clearly folk that know what they're talking about, you're just choosing to ignore them, probably because its not happening as fast as you wanted.

[Mango Man]

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Have you seen there squad for next season? They're already not getting away with it.

I really do hope you are right, it's been the end game for about 5 years now, yet they still won a tainted Scottish cup only over a year ago.

I know it doesn't look to good for them just now, but who's to say their young players won't gel next season and form a mediocre side?! the SPL isn't exactly a high standard, or maybe they will even be allowed to sign a couple of new players to give them a wee boost, who knows?!

I don't want them around anymore.

[Cabbage East]

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Just get the feeling they will somehow worm their way out of all this, they are jammy buggers.

Jesus wept, how many posts like this? Can you not see there is no chance of that happening? Look at the state of their squad? They've already been massively harmed and that's before administration, points deductions, transfer embargos and so on and so on. Just enjoy it ffs

[jacomo]

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Totally agree. Lot of talk on here on her on what could happen where in reality noone knows even hearts themselves!

I think they know the game is almost up................

Having seen his interview from a few weeks' ago, I'm pretty sure David Southern knows what's coming. His rabbit-in-the-headlights demeanor and refusal to deviate from a carefully chosen phrase (something about being "operationally self-sufficient" or some such nonsense had the hallmarks of a Chief Exec who knows the game is all but up.

[clerriehibs]

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Jesus wept, how many posts like this? Can you not see there is no chance of that happening? Look at the state of their squad? They've already been massively harmed and that's before administration, points deductions, transfer embargos and so on and so on. Just enjoy it ffs

I get all that .... Still hasn't stopped them painting some steps, though!

[Cabbage East]

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I get all that .... Still hasn't stopped them painting some steps, though!

Well yeah, the steps was a sore one but like 5-1, we just have to try and pick up the pieces.

[Sanger]

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Its for this very reason to me that FoH almost certainly have no chance of taking over. They ideally (and i'm not surprised) would like the club debt free. There is no chance of them keeping the repayments going and then being liable for the full amount two years down the road. No chance of refinancing this either. The liquidator can sit on this as CG says for two years be £1m+ to the good and be in the same (or better, property prices) position as now.

I'd like to know the strategy for FoH thinking they can get in debt free and owning Swynecastle with exactly zero resting in their bank account.

Unless Rolland is doing the accounts.

Lithuanian state issued £200 million of debt of varying maturities. Administrators keen to claw back as much as possible to repay debt as it matures before having to make tax rises or cuts in spending. They won't be hanging about!

[s.a.m]

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Nope, still frozen. The bolded part is the relevant part. The assets weren't frozen as some procedural thing AFAIK, they were frozen because they think Vlad is dodgy and they don't want everything being scattered about in a fire sale before they get a chance to find out what he's been upto. It's the financial equivalent of declaring somewhere a crime scene. Nothing moves without explicit consent.

As an aside, is the correct term unfrozen or defrosted? (Genuinely wondering as I'm not sure).

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Thawed?

I like 'melted'.

[hibs4thecup1988]

I get the feeling they will wiggle out of it too. I know they appear to be up s**t creek without a paddle but I've seen it happen many times before.

If it could happen a little bit faster please...sick of the jambo at work saying he KNOWS hearts will be saved...I ,wan Wtf?