Share Transfers Agreed/Cooling off period

[Gus Fring]

BDO's primary objective is to 'rescue' Hearts as a going concern. If Hearts are relegated then Season Tickets will be by far their biggest source of revenue next season. If they sell them and ***** the money now then FOH take over they will have no money to run the club with and as such will end up in exactly the same situation.

[whiskyhibby]

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By no no means an expert but I reckon BDO would have to sell ST's if it prevented liquidation, the biggest problem in doing this would be that FoH may lose it's main backers, as I'm sure this money along with the shares on the stadium are their guarantee!

Shoot me if I'm wrong!

Think you are absolutely right

[Gus Fring]

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I think that the more likely route would be to get FoH to use the DD money to find the club till the CVA is finally completed. This will require FoH to be pretty confident that the CVA can be completed and that they can convince those paying DD's to allow the funds to be used in this way.
Personally, despite it being a change to the terms of the DD, I don't foresee the Hearts support blocking FoH to use the funds as a last ditch attempt to save the club.

My reading of the FOH doesn't allow for this but I could be wrong.

The funds will be used for:
1. The financing of the purchase of the majority shareholding in HoMplc


2. Thereafter, other legitimate purposes/projects, subject to board and
membership approval, which will assist in ensuring the financial stability
and/or the betterment of the club.

It's number 2 having the word "Thereafter" that I believe to be legally limiting. Option 2 can't be invoked until Option 1 has been completed.

[gorgie greens]

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BDO is on a fixed price fee.

if they remain in admin because the frozen shares are stuck in the legal process in Lith takes years and not months,I think BDO would be after more money,there must be a cut off date and anything beyond that date will cost over and above what would have been agreed.or is this admin unique because of the fraud case and BDO never did there homework on this case and will get there fingers burned,even although i would stick my hands in a fire for £400.000

[CropleyWasGod]

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if they remain in admin because the frozen shares are stuck in the legal process in Lith takes years and not months,I think BDO would be after more money,there must be a cut off date and anything beyond that date will cost over and above what would have been agreed.or is this admin unique because of the fraud case and BDO never did there homework on this case and will get there fingers burned,even although i would stick my hands in a fire for £400.000

It's not a fixed fee, though.

[CropleyWasGod]

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My reading of the FOH doesn't allow for this but I could be wrong.


It's number 2 having the word "Thereafter" that I believe to be legally limiting. Option 2 can't be invoked until Option 1 has been completed.

Good spot.

I also think that the backers would be nervous about changing the terms of the repayment.

[brog]

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My reading of the FOH doesn't allow for this but I could be wrong.


It's number 2 having the word "Thereafter" that I believe to be legally limiting. Option 2 can't be invoked until Option 1 has been completed.

I think it may also give their backers some concern if they see money intended to repay their investment being used to keep the club afloat. That would probably trigger a withdrawal of support & then liquidation! Hmmmmm!!

[brog]

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Good spot.

I also think that the backers would be nervous about changing the terms of the repayment.

Great minds!

[CropleyWasGod]

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Great minds!

Boring old farts

[gorgie greens]

Think this could all come to a head in the next four months,
They lose the semi final,the impact of the drop in money would have the BDO begging bowl out right away (they were told to keep any money that Santa may have given them already)
The shares remain frozen in Siberia ,would result in further points reduction to the new season,
on the other hand if they win the semi final,the money would tide them over for the next few months,
And the big IF,they manage to get the shares in the next month and they exit admin.
I know what i want but think it wont be long till we find out.

[Fat Penlon]

What worries me is BDO handled the Portsmouth admin/liquidation where the owners assets were frozen in almost exactly the same fashion as the UBIG assets. Those shares still remain frozen to this day so BDO know the same will be the case for UBIG surely? Or do they know the shares can somehow be released? Or are even not held be UBIG and owned by some other company of romanov's that's isn't in administration?

[gorgie greens]

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What worries me is BDO handled the Portsmouth admin/liquidation where the owners assets were frozen in almost exactly the same fashion as the UBIG assets. Those shares still remain frozen to this day so BDO know the same will be the case for UBIG surely? Or do they know the shares can somehow be released? Or are even not held be UBIG and owned by some other company of romanov's that's isn't in administration?

sound much the same as Portsmouth won the cup just before the **** hit the fan as well,would be happy if the Hear7s had a similar outcome and end up the nobodys that we know they already are struggling for scraps at the bottom of the lower divisions

[Fat Penlon]

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sound much the same as Portsmouth won the cup just before the **** hit the fan as well,would be happy if the Hear7s had a similar outcome and end up the nobodys that we know they already are struggling for scraps at the bottom of the lower divisions

It's what clubs like that deserve! Cheats.

[lapsedhibee]

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sound much the same as Portsmouth won the cup just before the **** hit the fan as well,would be happy if the Hear7s had a similar outcome and end up the nobodys that we know they already are struggling for scraps at the bottom of the lower divisions

Wasn't 'onest 'arry in charge at Portsmouth when all that happened? Can only hope that his win bonus safely reached his dog's Swiss bank account.

[clerriehibs]

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What worries me is BDO handled the Portsmouth admin/liquidation where the owners assets were frozen in almost exactly the same fashion as the UBIG assets. Those shares still remain frozen to this day so BDO know the same will be the case for UBIG surely? Or do they know the shares can somehow be released? Or are even not held be UBIG and owned by some other company of romanov's that's isn't in administration?

Delighted if the yams go the same way as pompey.

If it's true about the pompey shares still being frozen, that means that no yam deal being possible while the ubig shares are frozen isn't really true.

[CapitalGreen]

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What worries me is BDO handled the Portsmouth admin/liquidation where the owners assets were frozen in almost exactly the same fashion as the UBIG assets. Those shares still remain frozen to this day so BDO know the same will be the case for UBIG surely? Or do they know the shares can somehow be released? Or are even not held be UBIG and owned by some other company of romanov's that's isn't in administration?

I'm pretty sure Portsmouth went down the Sevco route to get around the frozen shares issue. Fortunately for them, the authorities in England were happy for their league membership to be transferred over. With the Rangers (1873-2012) precedent in Scotland this would not be possible for Hearts (in administration).

[Fat Penlon]

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I'm pretty sure Portsmouth went down the Sevco route to get around the frozen shares issue. Fortunately for them, the authorities in England were happy for their league membership to be transferred over. With the Rangers (1873-2012) precedent in Scotland this would not be possible for Hearts (in administration).

Exactly so if BDO know that's what they had to do at Portsmouth why are the hanging on at hearts? What are they waiting on?

[CropleyWasGod]

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Exactly so if BDO know that's what they had to do at Portsmouth why are the hanging on at hearts? What are they waiting on?

They are trying to carry out their legal duty, which is the preservation of the business as a going concern.

[CapitalGreen]

As long as they believe the company can continue as a going concern they won't move towards liquidation.

[CapitalGreen]

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They are trying to carry out their legal duty, which is the preservation of the business as a going concern.

What he said ^^ :)

[CropleyWasGod]

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What he said ^^ :)

And him :)

[mixumatosis]

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Good spot.

I also think that the backers would be nervous about changing the terms of the repayment.

So, just for arguments sake, if one of us were to pledge a token tenner a month and foh gave those funds to bdo to keep the club afloat prior to the handover, said person might be in a position to Bismarck the whole deal?

One other thought that occurs (and I apologise if this has been covered previously) regards admin. My understanding is that bdo have stated that they do not have the funds to sustain the business beyond a given date. This implies that they are continuing to operate at a loss - if they were breaking even no such deadline would apply.

I understand that administrators may accept a short term loss in order to fulfill their "going concern" obligation. However, their fate is sealed with respect to relegation, or they were lying to the beaks when they argued that they were no threat to anyone.

How does the administrator now justify retaining players on £500/wk, at a continued loss,when releasing them and playing kids on £50/wk would move the business towards break even, whilst making no material difference to their prospects?

[Fat Penlon]

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They are trying to carry out their legal duty, which is the preservation of the business as a going concern.

So using next seasons ST shouldn't be an option then as they won't have any money to operate next season? BDO know the shares won't be released due to previous experience.

[Hibby70]

Do we know for definite the reason the shares are "frozen". Is it because of the Romaniv fraud investigation or is it because UBIg are in administration. Apologies if already covered.

[jacomo]

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My reading of the FOH doesn't allow for this but I could be wrong.


It's number 2 having the word "Thereafter" that I believe to be legally limiting. Option 2 can't be invoked until Option 1 has been completed.

Not how I read it initially but I think you are right.

[CapitalGreen]

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Do we know for definite the reason the shares are "frozen". Is it because of the Romaniv fraud investigation or is it because UBIg are in administration. Apologies if already covered.

Romanov fraud.

http://www.bloomberg.com/news/2013-0...-s-assets.html

[greenlex]

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I'm pretty sure Portsmouth went down the Sevco route to get around the frozen shares issue. Fortunately for them, the authorities in England were happy for their league membership to be transferred over. With the Rangers (1873-2012) precedent in Scotland this would not be possible for Hearts (in administration).

I'm not so sure Pompey were ever liquidated were they? At least two bouts of administration and the inevitable slide into the lower divisions with various points deductions and playing staff cuts for sure.

[CropleyWasGod]

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Delighted if the yams go the same way as pompey.

If it's true about the pompey shares still being frozen, that means that no yam deal being possible while the ubig shares are frozen isn't really true.

I'm not an expert on the Portsmouth situation, but the shares are central to the Hearts deal. BJ has already said a few times that the hardest part of his job will be getting his hands on them.

[greenginger]

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I'm not so sure Pompey were ever liquidated were they? At least two bouts of administration and the inevitable slide into the lower divisions with various points deductions and playing staff cuts for sure.

Portsmouth Football Club Limited were dissolved on 14/2/2012, they were replaced by Portsmouth Football Club Ltd. on 24/2/12.

The change in the name is as subtle as The Rangers

[greenlex]

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I'm not an expert on the Portsmouth situation, but the shares are central to the Hearts deal. BJ has already said a few times that the hardest part of his job will be getting his hands on them.

I think the Lithuanin chap didn't own a controlling interest in Pompey so the majority of shares were not frozen. Could be wrong tho.