Dalstonjambo Posted February 12, 2013 Share Posted February 12, 2013 The operation of ?kio bankas is temporarily suspended, a temporary administrator is appointed NASDAQ OMX Vilnius Announcement from the exchange The operation of ?kio bankas is temporarily suspended, a temporary administrator is appointed Vilnius, Lithuania, 2013-02-12 12:38 CET (GLOBE NEWSWIRE) -- Having assessed the inspection report, as well as other data gathered for supervision purposes, and aiming to protect the interests of the general public, depositors and other customers, the Board of the Bank of Lithuania declared the temporary restriction of the operation of AB ?kio bankas. A temporary administrator, appointed by the Board, is authorized to propose decisions that would enable ensuring of the compliance of obligations to the bank?s clients. The decision of the Board of the Bank of Lithuania to restrict the bank?s operation was made after assessing the risky tendencies of ?kio bankas in recent years, actions of shareholders that were harmful to the bank, non-compliance with the instructions of the Supervision Service, and the consequent rising threat to the stable and reliable operation of the Bank. The decision was approved once it was clear that the other statutory enforcement measures would not be sufficient in ensuring the security of the interests of depositors and the general public. During the inspections of ?kio bankas in December 2012?January 2013 it was established that the bank performed risky activities, inappropriately assessed credit risks, in not all cases made sure of the borrower?s possibilities to fulfil debt obligations, didn?t form enough specific provisions for problem loans, applied unacceptable methods of portraying transactions in accounting, and also violated prudential legal acts. Having assessed the data collected during the inspection, it was established that, in forming suitable specific provisions for problem loans and properly evaluating the other assets, the net value of ?kio bankas would be less than was declared in the reports presented to the Supervision Service, and the bank wouldn?t perform the prudential requirements related to the capital. In addition, based on the data presented to the Bank of Lithuania, on 12 February ?kio bankas no longer complies with the liquidity ratio. The shareholders of ?kio bankas and the management did not fulfil the loan restructuring plan, disregarded the Bank of Lithuania?s order to essentially reduce the part of the loan portfolio related to the main shareholder, or they only formally complied. Particularly the loans issued to companies related to the main shareholder make up the largest part of the problem loan portfolio. Ever after several repeated demands, the Bank of Lithuania did not receive data that could prove that ?kio bankas? main shareholders are ready to ensure reliable management of the bank and had real opportunities to strengthen the bank?s capital and remove the other deficiencies in the bank?s operation. The deficiencies in the bank?s operation and violations of legal acts have been established more than once. However, as was revealed in the information collected during the last inspection, the earlier requirements set for the bank to improve the quality of its assets, strengthen the capital base, and curtail operation risks, were not fulfilled. Having assessed all the circumstances related to the operation of ?kio bankas, in observance of the Republic of Lithuania?s Law on Banks and aiming for stability of the financial system, the Board of the Bank of Lithuania adopted the decision to announce the restriction of the activities of AB ?kio bankas and appointed a temporary administrator, Adomas Audickas. According to the Law on Banks, the administrator has the function of the bank?s supervisory board, the management and administration. He is authorized to assess in detail the financial standing of ?kio bankas and carry out adequate and effective actions to protect the interests of the bank?s depositors and customers. Taking into account the need to find a solution to the problem as soon as possible, the administrator is instructed to present to the Bank of Lithuania his conclusion and proposals no later than six days from the date of taking the decision. Temporarily, until it is decided what means will be used to find a solution to the problems of ?kio bankas, the bank will not be providing financial services. The Bank of Lithuania stresses that the enforcement measures applied to ?kio bankas are solely related to this bank only. All other banks operating in Lithuania and foreign bank branches implement prudential requirements and there is no risk to their stability. The obligations of ?kio bankas to other banks and credit unions operating in the country are insignificant. The Bank of Lithuania Public Relations Division Uh oh... queue much touching of themselves on wegotbuggeredonthebiggestdayinourhistory.net Link to comment Share on other sites More sharing options...
Cheile Posted February 12, 2013 Share Posted February 12, 2013 Doomed, doomed, we're all doomed. Link to comment Share on other sites More sharing options...
Gorgieshed Posted February 12, 2013 Share Posted February 12, 2013 Tick tock... Link to comment Share on other sites More sharing options...
ToadKiller Dog Posted February 12, 2013 Share Posted February 12, 2013 That's it then its all over now . Link to comment Share on other sites More sharing options...
Guest Bilel Mohsni Posted February 12, 2013 Share Posted February 12, 2013 Interesting... Watch this space I suppose. Just need to wait and see how this effects Romanov's plans and ultimately Hearts. Link to comment Share on other sites More sharing options...
Andy.C Posted February 12, 2013 Share Posted February 12, 2013 Can our debt be written off as 'toxic' now? Link to comment Share on other sites More sharing options...
McCrae Posted February 12, 2013 Share Posted February 12, 2013 Confirms that Vlad is struggling financially and this is probably the real reason why he stopped funding the club.... New owners of our debt are likely .... The question now is will they play hard ball and demand repayment of our debt! Link to comment Share on other sites More sharing options...
Jezza Posted February 12, 2013 Share Posted February 12, 2013 Confirms that Vlad is struggling financially and this is probably the real reason why he stopped funding the club.... New owners of our debt are likely .... The question now is will they play hard ball and demand repayment of our debt! Romanovs fortune will not all be tied up in the bank. Hearts have to release a statement advising how much of a percentage of any of the club the bank that has appointed administrators have in our club though. Link to comment Share on other sites More sharing options...
super_vlad Posted February 12, 2013 Share Posted February 12, 2013 Basically that reads to me that romanov had instructed his bank to loan money to his other companies (hmfc for 1) even tho they knew the money would never come back! Link to comment Share on other sites More sharing options...
DETTY29 Posted February 12, 2013 Share Posted February 12, 2013 Note to SevCo fans. Fit and proper persons rules came in after Vlad purchased Hearts and aren't retrospective. So don't get too excited. What's the worse that could happen any - we get an under 21 registration rule only pinishment. Link to comment Share on other sites More sharing options...
Balders Posted February 12, 2013 Share Posted February 12, 2013 Confirms that Vlad is struggling financially and this is probably the real reason why he stopped funding the club.... New owners of our debt are likely .... The question now is will they play hard ball and demand repayment of our debt! It was mentioned recently on here that the security over Tynecastle was passed from UBIG to Ukio Bankas recently, probably as an attempt to back up the dodgy loan portfolio. Not sure how this will play out now the administrator is in control. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted February 12, 2013 Share Posted February 12, 2013 BOOM! The first spinning plate falls. What happens to UBIG is more important. Imprudent loans - how dare they say Beslija was imprudent! Link to comment Share on other sites More sharing options...
Mr Romanov Saviour of HMFC Posted February 12, 2013 Share Posted February 12, 2013 A 40 page thread with wannabe financial experts telling us we're doomed. Link to comment Share on other sites More sharing options...
Forrest Posted February 12, 2013 Share Posted February 12, 2013 From Baltic Business Daily; VILNIUS, Feb 12, BNS - Stasys Kropas, the president of the Lithuanian Banks' Association, expects that Ukio Bankas, whose operations were restricted by the central bank on Tuesday, will continue to operate. "I hope that it (Ukio Bankas) will continue operations, in one or another form," he told BNS. Kropas expects that Ukio Bankas is not headed for the same fate as Snoras, which has been declared bankrupt and is now being liquidated. "I think that Ukio Bankas was in a different situation. It has some liquidity. Some steps need to be taken. There has been a lot of negative information about Ukio Bankas lately. Undoubtedly, this has an effect on the bank's clients. It is not a surprise that there are liquidity problems. But I hope that the capital will be sufficient for it to continue operating following, let's say, a capital injection," he told BNS. Link to comment Share on other sites More sharing options...
DETTY29 Posted February 12, 2013 Share Posted February 12, 2013 Confirms that Vlad is struggling financially and this is probably the real reason why he stopped funding the club.... New owners of our debt are likely .... The question now is will they play hard ball and demand repayment of our debt! The majority of our debt is with UBIG not Ukio Bankas - so it's UBIG's position with UB that matters, and then the potential domino effect. Amyone got a spare ?6m to offer UB to write everything off? Link to comment Share on other sites More sharing options...
ToadKiller Dog Posted February 12, 2013 Share Posted February 12, 2013 If its right that the stadium was transferred to Ukios from Ubig ?6.8m I think ??? Then maybe FOH or mad Massone have a chance to negotiate with the administrator to buy that part . Feck knows about Ubig which owns the club . Link to comment Share on other sites More sharing options...
super_vlad Posted February 12, 2013 Share Posted February 12, 2013 BOOM! The first spinning plate falls. What happens to UBIG is more important. Imprudent loans - how dare they say Beslija was imprudent! Not a expert but i'm assuming that UBIG was a portfolio of all of Vlad's companies, i.e it was only used to invest money into vlad's business so it is the most toxic of the lot. Link to comment Share on other sites More sharing options...
McCrae Posted February 12, 2013 Share Posted February 12, 2013 Romanovs fortune will not all be tied up in the bank. Hearts have to release a statement advising how much of a percentage of any of the club the bank that has appointed administrators have in our club though. Don't expect to see Sergei at the club again.... The share ownership is not a big deal.... It's all about what approach the administrator will take regarding our debt. Could be a great chance for a new owner to buy the club. Link to comment Share on other sites More sharing options...
DETTY29 Posted February 12, 2013 Share Posted February 12, 2013 From Baltic Business Daily; Continue operations in one form or another. All focus and energies on supporting the world's greatest football team it is then. Yee-ha. Link to comment Share on other sites More sharing options...
Balders Posted February 12, 2013 Share Posted February 12, 2013 If its right that the stadium was transferred to Ukios from Ubig ?6.8m I think ??? Then maybe FOH or mad Massone have a chance to negotiate with the administrator to buy that part . Feck knows about Ubig which owns the club . Yes, someone posted a link to a Companies House document last month stating that the stadium security was passed from UBIG to Ukio Bankas. Given the statement talks about raising capital etc and with the adminictrator now calling the shots this could have implications. Link to comment Share on other sites More sharing options...
Jammy T Posted February 12, 2013 Share Posted February 12, 2013 Although no certainty as to how this will pan out we do need to take this seriously I think. One of the keys to the stability of the rest of Vlad's companies, as I see it, is what elements of them are (i) dependant on UKIO Bankas, and (ii) have some of their assets tied up as part of the recent restructuring. So for example re (i) if UBIG are reliant upon UKIO for its banking and credit facilities there must be a real concern about their ability to continue to operate. Re (ii) if Tynecastle is held on UKIO Bankas books as an asset, then it falls into the pot that the adminstrator will be able to sell off. To this extent because of our close links with UKIO - certainly in the past, but possibly still in the present I do think it is incumbent upon the club to advise all their recently new and numerous shareholders where the Hearts the company stands given this news. Link to comment Share on other sites More sharing options...
Jammy T Posted February 12, 2013 Share Posted February 12, 2013 From Baltic Business Daily; Comical Ali anybody? There are no tanks in Bagdad? Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted February 12, 2013 Share Posted February 12, 2013 I'm hopeful that an administrator will be more amenable to debt haircuts if the balance sheet is clearly overvalued. Link to comment Share on other sites More sharing options...
Boab Mugabe Posted February 12, 2013 Share Posted February 12, 2013 Seeing as we've scraped by for a good year plus on our own two feet... Will be interesting to see how this affects us and our debt. Link to comment Share on other sites More sharing options...
DETTY29 Posted February 12, 2013 Share Posted February 12, 2013 Comical Ali anybody? There are no tanks in Bagdad? No, from the equivalent of the head of the British Bankers Association. Link to comment Share on other sites More sharing options...
scott_jambo Posted February 12, 2013 Share Posted February 12, 2013 Flats flats glorious flats. Link to comment Share on other sites More sharing options...
Paolo Posted February 12, 2013 Share Posted February 12, 2013 Note to SevCo fans. Fit and proper persons rules came in after Vlad purchased Hearts and aren't retrospective. So don't get too excited. What's the worse that could happen any - we get an under 21 registration rule only pinishment. And if they were in place at the time, he would mave met the criteria, possibly still would dependant on the outcome of this. Link to comment Share on other sites More sharing options...
McCrae Posted February 12, 2013 Share Posted February 12, 2013 I'm hopeful that an administrator will be more amenable to debt haircuts if the balance sheet is clearly overvalued. This.... Vlad will no longer be calling the shots and an administrator is more likely to be open to a deal. Link to comment Share on other sites More sharing options...
Chaka Demus & pliers Posted February 12, 2013 Share Posted February 12, 2013 To this extent because of our close links with UKIO - certainly in the past, but possibly still in the present I do think it is incumbent upon the club to advise all their recently new and numerous shareholders where the Hearts the company stands given this news. You could just check Hibs.net. they'll know what this means Link to comment Share on other sites More sharing options...
The Gasman Posted February 12, 2013 Share Posted February 12, 2013 Romanovs fortune will not all be tied up in the bank. Hearts have to release a statement advising how much of a percentage of any of the club the bank that has appointed administrators have in our club though. You want to try that again in English..? Link to comment Share on other sites More sharing options...
Phage Posted February 12, 2013 Share Posted February 12, 2013 Perhaps not the worst thing that could happen... As long as someone has the wedge to pick up some cut price assets. Too early too tell but im pretty sure Hobo's will have a much better understanding of the situation. Link to comment Share on other sites More sharing options...
DETTY29 Posted February 12, 2013 Share Posted February 12, 2013 I'm hopeful that an administrator will be more amenable to debt haircuts if the balance sheet is clearly overvalued. Yep, It would take c. 2-3 years for anyone to do anything with Tynecastle re new owners, and that could exclude planning permission timelines. So unless the BoD are quite far down the route of selling up to Tesco, there isn't much going to happen for a while as long as we are no longer loss making and self sustainable. Interest terms though, in the short term, whether to UBIG or Ukio may significantly increase though. Link to comment Share on other sites More sharing options...
DETTY29 Posted February 12, 2013 Share Posted February 12, 2013 And if they were in place at the time, he would mave met the criteria, possibly still would dependant on the outcome of this. Correct. Link to comment Share on other sites More sharing options...
McCrae Posted February 12, 2013 Share Posted February 12, 2013 Does anyone know if Hearts uses UKIO as its main bank? If funds from our equity issue are currently sitting in a UKIO bank account we could have problems getting access to it. Link to comment Share on other sites More sharing options...
Paulie Walnut Posted February 12, 2013 Share Posted February 12, 2013 Pre Pack !!! Link to comment Share on other sites More sharing options...
Lord Beni of Gorgie Posted February 12, 2013 Share Posted February 12, 2013 Move on nothing to see here. Vlad will be along in 5 mins to tell us all the truth, just as he has for the best part of 10 years Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 12, 2013 Share Posted February 12, 2013 Am I the only one who's quite positive about this news? It may just force a stubborn hand......... Link to comment Share on other sites More sharing options...
ollie2004 Posted February 12, 2013 Share Posted February 12, 2013 Yes, someone posted a link to a Companies House document last month stating that the stadium security was passed from UBIG to Ukio Bankas. Given the statement talks about raising capital etc and with the adminictrator now calling the shots this could have implications. I hope Dumb & Dumber get the job, ?6.5 million for Cheatsco - how much for the Famous? Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted February 12, 2013 Share Posted February 12, 2013 Am I the only one who's quite positive about this news? It may just force a stubborn hand......... I'm positive too IF the consortium have funds. If not, it could be very bleak... Link to comment Share on other sites More sharing options...
Dusk_Till_Dawn Posted February 12, 2013 Share Posted February 12, 2013 Pre Pack !!! It sounds a bit like it. Link to comment Share on other sites More sharing options...
Paolo Posted February 12, 2013 Share Posted February 12, 2013 I'm positive too IF the consortium have funds. If not, it could be very bleak... I think they have already said that they do not. If by consortium you mean FoH. Link to comment Share on other sites More sharing options...
McCrae Posted February 12, 2013 Share Posted February 12, 2013 Am I the only one who's quite positive about this news? It may just force a stubborn hand......... Could be very positive... But too early to tell. Longer term I have no doubt we will be ok... But we may face some pain on the way. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted February 12, 2013 Share Posted February 12, 2013 I think they have already said that they do not. If by consortium you mean FoH. Indeed but they were able to get ?450k quick enough from somewhere. This might be another game changer. Link to comment Share on other sites More sharing options...
Smack Posted February 12, 2013 Share Posted February 12, 2013 UKIO Bankas is too big to fail. Couldn't have hand picked a better backer. Link to comment Share on other sites More sharing options...
Guest Bilel Mohsni Posted February 12, 2013 Share Posted February 12, 2013 I'm not buying this positive angle at all, never have... Too many folk have invested all their hope in that scenario for a while and its never made sense to me. If it had not been for Romanov's favourable influence over our debts all this time, we'd have been sunk ages ago. Careful what you wish for. Link to comment Share on other sites More sharing options...
Gambo Posted February 12, 2013 Share Posted February 12, 2013 Now would seem an ideal time for potential buyers to step forward. Also a time for the casual fan to buy tickets for next few home games. Link to comment Share on other sites More sharing options...
jambogjh Posted February 12, 2013 Share Posted February 12, 2013 This news today could be why we haven't heard from FOH for a while I just hope they have something in the pipeline & were waiting for this to happen hence the silence. Link to comment Share on other sites More sharing options...
Jammy T Posted February 12, 2013 Share Posted February 12, 2013 Good question about where our money from the share issue is..... Very good. I assume it is in a UK bank given it is needed for operational reasons...but if UKIO Bankas needed cash to keep balls juggling it is dangerous to assume...as the saying goes... Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 12, 2013 Share Posted February 12, 2013 I'm positive too IF the consortium have funds. If not, it could be very bleak... if it pans out correctly, we may not need nearly as much funds to acquire the club, or is that wishful thinking? Link to comment Share on other sites More sharing options...
the_jailer Posted February 12, 2013 Share Posted February 12, 2013 Good question about where our money from the share issue is..... Very good. This Link to comment Share on other sites More sharing options...
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