Share Transfers Agreed/Cooling off period

[CropleyWasGod]

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Given that UBIG would appear to be unhappy that "the club" want to appoint KPMG ... who at "the club" decided, or was even authorised, to go for admin? Surely that decision would have had to come from UBIG, being the majority shareholders?

It's a Board decision.

[PatHead]

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What happens with the wages that were due last week?

When they are in admin do the players become creditors and can therefore not expect hearts to even try to pay them?

They become preferred creditors after liquidators and secured creditors if I remember correctly

[HibbySpurs]

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Given that UBIG would appear to be unhappy that "the club" want to appoint KPMG ... who at "the club" decided, or was even authorised, to go for admin? Surely that decision would have had to come from UBIG, being the majority shareholders?

No, the board of directors at Hearts have a legal duty of care to "act in the best interests of the shareholders". In this instance the best interests of those shareholders is by accepting the business can no longer meet it's liabilities therefore to offer some sort of chance of protecting those shareholders interests through some form of restructuring or refinancing the board have asked to appoint an administrator which also offers bankruptcy protection whilst the administrator attempts to find a way forward for the business. Someone asked earlier which administrator would be more likely to go for liquidation. I think the answer is neither as they have a duty of care to attempt to keep the business going as a "going concern", however BDO if appointed would be working on behalf of UBIG/UKIO'S Administrator and therefore would be looking at ways to ensure their client obtained the best possible return through the administrative process. should that lead to liquidation and sale of assets then so be it. This was why HMRC wanted to appoint the administrator at Rangers to protect their interests first & foremost. They failed as they were not a shareholder or secured creditor. The opposite is true of UBIG/UKIO so my money is on BDO being given the nod (provided the judge is not some yam walloper of course )

[CropleyWasGod]

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They become preferred creditors after liquidators and secured creditors if I remember correctly

You can claim for all your outstanding pay from the insolvency practitioner. There is no guarantee that the full amount you are owed will be paid as this depends on whether enough funds are raised from the sale of your employer's assets.

Some debts, including holiday pay and wages, will be 'preferential debt' when your employer's assets are shared out. This means they must be paid before certain other debts.

As full payment cannot be guaranteed, there are special arrangements for employees to claim the basic minimum of debts owed to them from the National Insurance Fund. These claims are:

redundancy
wages - up to a maximum of eight weeks
holiday pay - up to a maximum of six weeks
compensatory notice pay - one week after one calendar month's service rising to one week per year of service up to a maximum of 12 weeks (new earnings will be taken into account)

There is a limit of £450 a week on the amount you can claim for weekly pay.

[Andy74]

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Utter bulldust, IMHO

Do you have a link? It may be bad journalism.

On the phone just now but the EN had a Q and A with an insolvency guy today. He was prattling about newco getting relegated though.

[Eyrie]

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There is a limit of £450 a week on the amount you can claim for weekly pay.

Getting paid in full from the taxpayer will be a small consolation for the youth players and ordinary employees in the Yams office, shop etc who will be losing their jobs. But it's nice to know that the remaining overpaid mercenaries in the first team squad will only get a fraction of what their contracts promised.

[Hermit Crab]

@BBCFootball1: Administration nears for Hearts: BBC Scotland expects administration to follow for Hearts once their parent co... http://t.co/M6UwgA9nff

[Hermit Crab]

@BBCBMcLauchlin: Hearts board turned down £500,000 from potential buyer on Monday hours before asking for club to be placed in administration#bbcsportscot

@BBCBMcLauchlin: The offer was from the Scandinavian group who were willing to hand over £500k in return for a share of future transfer fees.#bbcsportscot

[Sir David Gray]

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Dimitri learns of tonight's revelations.

Just in case anyone missed this last night.

[SaulGoodman]

500,000

[Hibbyradge]

"Hearts are due to pay a significant six-figure sum to the Inland Revenue on Friday but have insufficient funds available."



Could a winding up order be on its way or has admin robbed us of that particular giggle?

[Hibbyradge]

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Just in case anyone missed this last night.

Hats off to you!

[CropleyWasGod]

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"Hearts are due to pay a significant six-figure sum to the Inland Revenue on Friday but have insufficient funds available."



Could a winding up order be on its way or has admin robbed us of that particular giggle?

Given that the Inland Revenue disappeared in 2005, that's a helluvan old debt.

[jgl07]

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It's a Board decision.

But UBIG have no Board. I suspect that the directors of Hearts and the (former) directors of UBIG have some overlap.

[SteveHFC]

http://www.afc-chat.co.uk/forums/index.php?act=idx right hand side

[CropleyWasGod]

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But UBIG have no Board. I suspect that the directors of Hearts and the (former) directors of UBIG have some overlap.

The question was about the Hearts administration, and who made that decision.

[Zondervan]

I wonder how long it will take The City of Edinburgh Council to tell us how much is owed to us from HoMFC?

[jgl07]

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The question was about the Hearts administration, and who made that decision.

My guess is David Southern.

[CropleyWasGod]

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My guess is David Southern.

No, it can't be. It is the Board who make the decision. DS may have recommended it, but the Board have the final say.

[WestEndHibee]

Just back from a weekend away. What sublime news

[poolman]

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Spring bank fifteen year old

Numerous reasons

1) amazing malt
2) Campbeltown malt (see above - may influence kpmg)
3) green and black label
4) fifteen
5) one five
6) 15
And not a minus fifteen or a childish hand gesture in sight!

Slainte!!

I have a bottle of glenmorangie quinta ruban(been extra matured in port casks ) I'm really tempted but I'm keeping it for my 60th in three weeks time

Then its getting opened for a wee party in Whitby

A really good mate of mine ( a jambo ) will be there so I hope he takes it in good part when I open it and he sees the T-shirt I'm planning to wear :-)

[rcarter1]

For reading addicted insomniacs...

Hearts. An Edinburgh Institution. A bit like RBS. Both institutions pushed the financial boat far too far from the shore. RBS, bailed by the government, the tax payer, continues to trade. The future of Hearts remains in the balance. Perhaps the Edinburgh rate payer should foot the 25 million bill? Or perhaps the UK government should lean on the Lithuanians to foot the bill – all in order for a football club to continue in its present form. A football club, that like RBS was the sole architect in its own downfall. Both examples of the hubris that rages throughout the capitalist free market economic model.
So how should Scottish football judge this sorry mess? On the one hand, having lost Rangers from the league, an argument can be made for protecting another prominent club from folding. This argument is based on very loose assertions that the SPL cannot survive, or is devalued without Hearts. The survival argument is tenuous at best – given that the loss of Rangers was far less damaging than had been predicted. The bottom line is, Hearts as an organisation created their current situation, and it is difficult to see why anyone should pay for their poor management.
Football is an emotive business of course. Sport attracts supporters in a way no other industry quite matches. A contest that epitomises the competitive spirit, it is pride that is at stake for those who pay through the turnstiles. This is the other side of the argument for those interested bystanders watching from the side lines. Apart from the legalities of debt and financial fair play, sporting integrity is what matters most to many of Scotland’s football supporters. Supporters who see their pride damaged on the pitch by opponents gaining unfair financial advantage inevitably have no sympathy for those opponents suffering when the debts are recalled. The supporters of Hibernian have more reason than most to hope for financial justice to be done to their rivals across the city. Years of derby domination by Hearts has been a hard slog for these supporters, in the knowledge that their own club were trying their hardest to make ends meet. The overwhelming sense of superiority held by many Hearts fans in this period, was all down to the financial plan of one man, Vladimir Romanov. That his vision ultimately failed, his businesses bankrupt, and his financial support for Hearts withdrawn, is no direct fault of the Hearts fans, or any employee of the club. Nonetheless by buying into his vision, accepting his wages, shouting from the rooftops at their glory, they cannot now avoid facing whatever fate befalls them – and can expect no sympathy.
The 25 million pounds owed by Hearts to UKIO/UBIG, is ultimately part of a large pool of debt owed to a host of creditors - probably including Lithuanian taxpayers, who have no interest in Hearts or Scottish football. It is a sign of the mean and callous side of human nature, that there are many who would be happy to see these creditors foot the bill for all those players that passed through the gates of Tynecastle. After all they are in Lithuania right? Surely we just send a gun boat to the Baltic Sea and call the whole thing quits. Or perhaps, the organisation responsible for accumulating this debt should be held accountable. If this results in the Stadium being sold, the club being liquidated, then how can this be seen to be in anyway unfair, or even harsh? For sure there will be many people associated with Hearts who will be devastated, many club employees looking for jobs. Is it the Lithuanian creditor who is at fault and should suffer instead? Loss of jobs is always a personal tragedy, and it is an indictment of our society that a person can – through no fault of their own – go from respectable contributor, to drain on society overnight. Once again however it is Hearts financial imprudence that has most directly led to this.
From this observers view point, I hope that a Hearts team plays football, if not now, but in the future. In the meantime, I also hope that they reap what they have sown.

[Dunderhall]

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On the phone just now but the EN had a Q and A with an insolvency guy today. He was prattling about newco getting relegated though.

Was it this? EEN link.

"What happens to the club’s debt?
The CVA will mean both Ukio Bankas and UBIG will have to agree to accept a certain proportion of their debt, whether that might be five or ten pence in the pound, or perhaps slightly more. One of them also has security over Tynceastle Stadium. That will be excluded from that process."

[monktonharp]

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Yeah some good points there cheers, however, I guess I wasn't really asking if the SPFL would survive, but really if anyone can see a slow, possible domino effect in other clubs maybe slipping into financial dire straits as time goes by, say over the next 2-3 years. We're obviously in far better shape that those puddle drinkers but I do think we will have to keep an eye on things money wise as well.

Anyway, cheers for the comments

I'm miles off the pace here things are changing by the minute! but I basically don't give a fck what happens down gorgie way at the mo, and even less about der hun. I do have a good feeling, that our crowds will increase over the coming season,yet there will be ramifications re-the demise of another top end club, for Scottish football at the moment. there is no way that I can feel anything though , other than a "you made your bed, lie in it" attitude. and I'm 100% certain that almost 100% of the people on here feel the same. cheats, and that's the only way to describe them, be it sevco , or soon to be sevco 2, will get their just deserves and the people that have been cheated will feel that every dog has it's day, and as I've said on various posts on here over the years, our day will come. that day is just round the corner and I am hoping that our supporters can kick on this season, by attending our games in good numbers. we have more ST holders than them, obviously driven by Petrie's reasoning of , renew, buy, get a ticket to the final etc which in essence actually worked!. (not the ideal scenario for fans , from a while back imho) however, I do still feel a bit confused about the new spfl, or what it means and will it actually help Scottish football but I will be following Hibernian fc again this coming season with hopefully a full bus to most of our away games! despite the idiotic ,usual tv driven ko times/days! ggtth.

[Delboy4]

? ?

[monktonharp]

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The financial guru is back...in some strange way i feel that if it were not for CWG, CG, GG, PTS, Sergey and a few other notables whose names elude me at the moment, then this beautiful story might never have happened.

on behalf of all . netters....'We Salute You!'....your indefatigability in providing us with a true picture of what has been happening at the PBS against a backdrop of lazy journalism, lying directors and deluded supporters make you all lifetime Hibs legends in my eyes.

and for that, in turn we support you

[monktonharp]

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Very very unlikely. Admins will be responsible for leccy once they take over and will take readings. Invoices up to that date will go in the pot marked "whistle".

ok, while we're at it, have they/will they paty the council tax/rates? who empties their buckets?

[monktonharp]

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First ever post from Drumlanrig, couldn't resist it anymore!

This thread has just made me so happy....blub blub!

Never thought that it could be like this...... sniff, sniff blub !

On train to Cheltenham and gonna celebrate with a large dram on arrival ... I'm overcome by emulsion!!

Wot dram should I have??

Glenfarclas, 10, 12,15 or 18year old. recommended. and don't add water

[SaulGoodman]

Nearly, probably

[Dashing Bob S]

I think the reaction by the sporting media to Hearts demise shames Scottish society. They shouldn't be selfishly asking whether the SPL can survive without Hearts, they should be considering the broader implications for western democracy as a whole.

In the thirties and forties, only Hearts stood between us and being kitted out in Hugo Boss today.

Now the fear is that we'll all have towels wrapped round our heads and be reciting verses from the Koran next season.

The only people who will be 'having a party' will be the Hitlers and Bin Laden's of this world.