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Liquidation


Paulie Walnut

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I thought secured creditors don't get a vote in a cva?

 

They dont. UKIO will not have a vote but UBIG will, as it appears their debt is now unsecured. There seems to be a bit of confusion about the amount that is secured but any administrators would be required to raise more than the security for there to anything for the unsecured creditors.

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Charlie-Brown

We have approx 24 million debt to Lithuania however that is packaged up as long as more than 6 or 8 million is unsecured which I am sure it is then the Lithuanian administrators will carry at least 75% of the CVA vote and they alone ultimately decide whether it passes or not and every other creditors vote is a formality.

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hibsarepants

Ukio Bankas are the secured creditor and have a significant say in what happens next. Signs are they will appoint an Administrator next week as the club is threatening to sell assets which will effect any sale vale to a new owner. They can vote in a CVA for the amount that their debt is not covered by the security @ ?10m (?15m - ?5m proceeds). I would expect the UB Administrator and the UBIG Administrator to collude on the CVA so that the outcome is a controlled handover to new owners with NO debt. Please note that in a CVA process the existing company continues it is NOT a Newco. I fully expect a club with no debt and a fully invested playing pool albeit a 15 point penalty come the start of the new season. That is going to make a lot of tick tockers across the city a bit miffed. :10900:

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Tommy Wiseau

 

 

My view is that it's up to each fan as an individual whether they view a newco as a new club or a continuation of the old club, simply within a different corporate entity. The football authorities have certainly made clear they treat it as a continuation (albeit downgraded to the same membership status as a new club would have). I honestly can't say how I'd view or feel about a newco Hearts if it came to that. I'd just have to see at the time. Hopefully, I won't ever have to find out!

 

 

I think we're both agreed that it is an avoid at all costs scenario, whatever our opinions on it. Shite state of affairs when it's even being discussed.

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Ukio Bankas are the secured creditor and have a significant say in what happens next. Signs are they will appoint an Administrator next week as the club is threatening to sell assets which will effect any sale vale to a new owner. They can vote in a CVA for the amount that their debt is not covered by the security @ ?10m (?15m - ?5m proceeds). I would expect the UB Administrator and the UBIG Administrator to collude on the CVA so that the outcome is a controlled handover to new owners with NO debt. Please note that in a CVA process the existing company continues it is NOT a Newco. I fully expect a club with no debt and a fully invested playing pool albeit a 15 point penalty come the start of the new season. That is going to make a lot of tick tockers across the city a bit miffed. :10900:

 

I can't wait for the seethe..! :D

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David McCaig

At the end of the day if the Lithuanian Authorities are prepared to accept ?6-8M for the club, it would be a disgrace if we went in to administration to avoid paying the remaining ?1m we owe HMRC.

 

Heart of Midlothian is a proud club with a proud history, it is beyond belief that some people would so willingly flush all that away.

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Jambos_1874

 

Ukio Bankas are the secured creditor and have a significant say in what happens next. Signs are they will appoint an Administrator next week as the club is threatening to sell assets which will effect any sale vale to a new owner. They can vote in a CVA for the amount that their debt is not covered by the security @ ?10m (?15m - ?5m proceeds). I would expect the UB Administrator and the UBIG Administrator to collude on the CVA so that the outcome is a controlled handover to new owners with NO debt. Please note that in a CVA process the existing company continues it is NOT a Newco. I fully expect a club with no debt and a fully invested playing pool albeit a 15 point penalty come the start of the new season. That is going to make a lot of tick tockers across the city a bit miffed. :10900:

 

I think this is just about the best we can hope for at the moment.

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Hungry hippo

 

 

How do we get a successful CVA when all the assets are secured to UKIO?

 

 

I miss this post earlier. We get a successful CVA by someone offering more than they would get from liquidation. This is a necessity whatever route we take.

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So if the Ukio Bankas liquidators are being appointed next week - does anyone know how long it may take for them to sort out the mess in Lithuania and get round to looking at Hearts? I assume with the debts they have Hearts are relatively small fry?

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Ukio Bankas are the secured creditor and have a significant say in what happens next. Signs are they will appoint an Administrator next week as the club is threatening to sell assets which will effect any sale vale to a new owner. They can vote in a CVA for the amount that their debt is not covered by the security @ ?10m (?15m - ?5m proceeds). I would expect the UB Administrator and the UBIG Administrator to collude on the CVA so that the outcome is a controlled handover to new owners with NO debt. Please note that in a CVA process the existing company continues it is NOT a Newco. I fully expect a club with no debt and a fully invested playing pool albeit a 15 point penalty come the start of the new season. That is going to make a lot of tick tockers across the city a bit miffed. :10900:

I would fully expect them to already be in discussions. And I know UBIG arent in administration yet but I expect them to working together on the assumption that they will be soon.

 

I miss this post earlier. We get a successful CVA by someone offering more than they would get from liquidation. This is a necessity whatever route we take.

 

It would also have to be greater than the security held by UKIO.

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Paulie Walnut

Doesn't look good does it. No income streams and the potential for our Lithuanian friends to play hard ball now they are not in control.

 

Hold on and be brave.............. Oh and by season tickets like there's no tomorrow(literally)

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Caspian Primrose

i've been expecting todays news for years.

 

i couldnt deal with liquidation at all. the thought terrifies me.

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