Ukio to be Liquidated (merged threads)

[rudi]

Taken from BBC 1158:

 

FOOTBALL

 

The administrator of Ukio Bankas says he has "no reason or desire to harm Hearts" after a court in Lithuania upheld a decision to liquidate the bank.

The company - formerly controlled by Jambos owner Vladimir Romanov - is set to go bust following the decision by judges in Kaunas at the Court of Appeal of Lithuania. Hearts owe the bank around ?15m, but Gintaras Adomonis of accountancy firm UAB Valnetas has today insisted he intends to keep Hearts running as a going concern before selling it on.

"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," he said.

 

Good sales pitch if you ask me, should weed out those who are really interested, unless we are sold pretty quick I would think the next statement about us will be giving time scales as to when they will get hacked of and sell it to the highest bidder regardless of what they want to do with the ground.

[Back to 2005]

This could all work out rather well...#5-1

[Gambo]

So now potential buyers have someone (the liquidators)to deal with?

[tartofmidlothian]

UKIO have a 30% of the club and a security over the ground so (as I understand) if someone stumps up for this, then they will own 1/3 of the club and Tynecastle.

 

Or am I being too simplistic?

 

I have no real financial knowledge, but isn't this quite a good thing for us? Assuming of course someone buys it!

 

I doubt I have any more knowledge than you, but that's what I get from all the info coming out.

[Paulie Walnut]

 

UKIO have a 30% of the club and a security over the ground so (as I understand) if someone stumps up for this, then they will own 1/3 of the club and Tynecastle.

 

Or am I being too simplistic?

 

I have no real financial knowledge, but isn't this quite a good thing for us? Assuming of course someone buys it!

 

Correct.............

[Boris]

Best check Hibs.net - they seem to have all the answers

 

I'd rather not sully myself in that way, thank you very much.

[tartofmidlothian]

@BarryAnderson_8: Ukio Bankas administrators say they want to keep the club operating. Their "primary objective" is to help complete the sale of #HMFC. #SPL

 

See this Banderson? He's an all right ***** like. Two bits of good news he's broken today.

[rudi]

So without the ground what is 30% of Hearts worth, still can't see this being as easy as some think, hope it is but with so many fingers in so many pies it's hard to work out what it will take.

[Paolo]

Now is the time for buyers to take their first steps.

[DETTY29]

While we are keeping up our side of the bargain (to UB) and continue to make capital and interest injections short term, I believe the UB administrators will be supportive as much as possible to facilitate the sale. If we can't keep these payments up short term or prospective buyers try and play silly beggars, the (UB Admins) game plan may change.

 

Next step is what happens to UBIG on Monday and the SPL board's interpretation of their rules. Oh and HMRC and salary payments due early next week, if not before.

[Rudolf's Mate]

Now that liquidation proceeding have been confirmed, it should actually make it a little easier for a prospective buyer.

 

Hearts debt is classed as a "bad debt", otherwise it would have been transferred to Siauliu along with the good loans and assets.

 

As is the case for all bad dets, the liquidator will now seek to recover whatever he can, otherwise it will be written off. Anything he can recover is a bonus. While the security over Tynecastle has a value, it is really a subjective one.

 

Now is the time for FoH, or any other party, to start negotiating hard with the liquidator and most importantly talk down its value of the main asset. e.g. its a firesale situation, work is required to replace the main stand, site clearance costs for any developer, planning permission unlikely due to COMAH concerns re the adjacent ethanol storage.

 

If Ukio have taken ownership of the 29.9% of the shares in the club pledged to them by UBIG, then they should be included in any deal.

 

What should the offer be? That's the $64,000 question. Start with a low offer of, say, 5p in the ? for the debt, security and the shares and negotiate from there.

 

Mate, although it's not the same, not the same at all, Portsmouth City Council have a covenant in place which prevented anything other than sports events being played at Fratton Park. In doing so they safeguarded the future of the stadium.

 

The council should be looking at this and thinking they could help us out making sure that someone looking to safeguard the future of the club would get preferential status. I know there are pro's and con's as it could be the the future lies away from Tynie but the council could do something to prevent vultures from circling!

[Geoff Kilpatrick]

Now is the time for buyers to take their first steps.

Yep, and if we don't see some in the next couple of weeks then it will be time to worry.

[Dr. Bapswent]

So now potential buyers have someone (the liquidators)to deal with?

 

yes

[Geoff Kilpatrick]

 

 

Mate, although it's not the same, not the same at all, Portsmouth City Council have a covenant in place which prevented anything other than sports events being played at Fratton Park. In doing so they safeguarded the future of the stadium.

 

The council should be looking at this and thinking they could help us out making sure that someone looking to safeguard the future of the club would get preferential status. I know there are pro's and con's as it could be the the future lies away from Tynie but the council could do something to prevent vultures from circling!

I would be careful with this. It is quite possible that a new owner or owners will have to borrow against the ground and restricting its use could restrict that working capital.

[DETTY29]

So without the ground what is 30% of Hearts worth, still can't see this being as easy as some think, hope it is but with so many fingers in so many pies it's hard to work out what it will take.

Tynecastle has it's value but the rest of the assets could be construed as fairly subjective. SPL share (?1) SFA share (?1) playing staff (?); Goodwill (?)

 

As a company projecting a ?2.5m shortfall, 30% of ?2 would seem a good offer.

[primrose]

From the Scotsman

 

THE Administrator of Ukio Bankas says he has ?no reason or desire to harm Hearts? after a court in Lithuania upheld a decision to liquidate the bank.

 

 

The company - formerly controlled by Hearts owner Vladimir Romanov - is set to go bust following the decision by judges in Kaunas at the Court of Appeal of Lithuania.

Hearts owe the bank around ?15million, leading to fears that club assets such as Tynecastle could be sold off to repay the debt.

But Gintaras Adomonis of accountancy firm UAB Valnetas has today insisted he intends to keep Hearts running as a going concern before selling it on.

 

 

 

 

http://www.scotsman.com/news/ukio-bankas-administrators-vow-to-sell-hearts-on-1-2963439

[Chad Sexington]

Hopefully this gets us a step nearer to a successful takeover.

 

 

[The Gasman]

Yep, and if we don't see some in the next couple of weeks then it will be time to worry.

 

Just because you don't see someone, does not mean they're not there.

[Fat Striker]

I've seen little evidence that anyone other than FOH are prepared to make a bid (though others may yet show their hand).

 

Now is the time to pledge to FOH to strengthen any bid that they make. Personally I think that 4,000 pledges is a disappointing amount.

 

Some people say they are waiting to see how things pan out before renewing their season tickets or making a pledge. If you can afford to do so what is stopping you?

 

Personally I think playing a waiting game is a risky strategy.

[rudi]

Just because you don't see someone, does not mean they're not there.

 

You sure, are you, bearing in mind the abuse you and other decided to try and give me because I had been told on good authority that there were other interested parties when your vlad took over, man you can twist thing when it fit's when you want.

 

Hopefully any interested parties will get their fingers out quickly and start bidding.

[Paolo]

I've seen little evidence that anyone other than FOH are prepared to make a bid (though others may yet show their hand).

 

Now is the time to pledge to FOH to strengthen any bid that they make. Personally I think that 4,000 pledges is a disappointing amount.

 

Some people say they are waiting to see how things pan out before renewing their season tickets or making a pledge. If you can afford to do so what is stopping you?

 

Personally I think playing a waiting game is a risky strategy.

 

If people want rid of Vlad and Co, and want fans to own the club, if they can, they should both renew and pledge in my opinion.

[Boris]

You sure, are you, bearing in mind the abuse you and other decided to try and give me because I had been told on good authority that there were other interested parties when your vlad took over, man you can twist thing when it fit's when you want.

 

C'mon Man, surely it's time to move on?

 

You're sounding like White Goodman!

[tartofmidlothian]

So without the ground what is 30% of Hearts worth, still can't see this being as easy as some think, hope it is but with so many fingers in so many pies it's hard to work out what it will take.

 

I may be being simplistic, but it's the ground that's worth money and the 30% is only worth chucking in for free. Whoever has the ground then holds all the power in negotiating for the rest of the shares, it could even be down to whoever offers ?1 first.

[Chad Sexington]

You sure, are you, bearing in mind the abuse you and other decided to try and give me because I had been told on good authority that there were other interested parties when your vlad took over, man you can twist thing when it fit's when you want.

 

Hopefully any interested parties will get their fingers out quickly and start bidding.

 

Why do all your posts have to be about your persecution complex?

[Geoff Kilpatrick]

 

 

Just because you don't see someone, does not mean they're not there.

 

Fair point but time is not on our side here.

[rudi]

C'mon Man, surely it's time to move on?

 

You're sounding like White Goodman!

 

I'll move on bud thats no problem to me just you didn't get the press gang treatment from the usual people, thing is bud they can't move on because I'm still getting it from them, not that it bothers me old enough not to let them get to me.

[Geoff Kilpatrick]

 

 

Why do all your posts have to be about your persecution complex?

Because it makes our guy in Uruguay smile.

[MessengerOfNade]

http://www.bbc.co.uk/sport/0/football/22872935

 

Could be worse, eh?

[tartofmidlothian]

Mate, although it's not the same, not the same at all, Portsmouth City Council have a covenant in place which prevented anything other than sports events being played at Fratton Park. In doing so they safeguarded the future of the stadium.

 

The council should be looking at this and thinking they could help us out making sure that someone looking to safeguard the future of the club would get preferential status. I know there are pro's and con's as it could be the the future lies away from Tynie but the council could do something to prevent vultures from circling!

 

Given their past lack of assistance with redevelopment, I wouldn't be surprised if the council were all for the Straiton plan happening and us being a part of it. I'm sure they'd offer any help they could to see us survive, but I doubt that would include scuppering their plan if they tried at a later date to force us out to an out of town vanityplex in the middle of nowhere.

[Paolo]

Just because you don't see someone, does not mean they're not there.

 

One could interpret that as you knowing something.

[rudi]

I may be being simplistic, but it's the ground that's worth money and the 30% is only worth chucking in for free. Whoever has the ground then holds all the power in negotiating for the rest of the shares, it could even be down to whoever offers ?1 first.

Was hoping as much, just with the last share issue perhaps they might think that brand HMFC might be worth another few million.

[Fermit the Krog]

not that it bothers me old enough not to let them get to me.

 

As your posts clearly show.

[Kalamazoo Jambo]

The thread title is misleading.

[Splog]

think you may have misread the article (or i have).

 

they're saying they don't plan to immediately try to recover their debt and therefore put Hearts into admin. they plan to allow the club to run until they can find a way to sell the club.

[tartofmidlothian]

Was hoping as much, just with the last share issue perhaps they might think that brand HMFC might be worth another few million.

 

The 30% might help them push the price up, but admins really just have to accept the highest bit. The share issue saved us, but it was in no way representative of what the club is worth.

[rudi]

Why do all your posts have to be about your persecution complex?

 

I would say 7 or 8 at most chad and as I've alread said I can move on as long as the press gang can.

[TheMaganator]

You sure, are you, bearing in mind the abuse you and other decided to try and give me because I had been told on good authority that there were other interested parties when your vlad took over, man you can twist thing when it fit's when you want.

 

Hopefully any interested parties will get their fingers out quickly and start bidding.

 

I hope you have the corresponding elephant boabby, to go with that memory!

[MessengerOfNade]

Apologies, realised the thread title wasn't the best after it was too late Mods, please edit it, or merge it with the other threads.

[rudi]

The 30% might help them push the price up, but admins really just have to accept the highest bit. The share issue saved us, but it was in no way representative of what the club is worth.

Yup I know that, will they be able to sell of the shares separately to the stadium or is it an all or nothing, not that it might make any odds but could someone say "I'll give you ?1000 for the shares" ?

[wavydavy]

think you may have misread the article (or i have).

 

they're saying they don't plan to immediately try to recover their debt and therefore put Hearts into admin. they plan to allow the club to run until they can find a way to sell the club.

 

This seems the important part to me.

 

"Heart 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."

[TheOak88]

Yes the Sevco saga is a decent barometer and yardstick for any bids and can be used as a precedent for how much is likely to be (and should be) offered.,

Is it really a good barometer? I thought the only reason that ridiculous deal went through was because Rangers had the most agreeable Administrators of all time on their side - probably also being put under huge pressure from the SFA, SPL and MSM?

[The Future's Maroon]

Its starting to sound like we might just come out of this mess alright, time will tell though!

[Geoff Kilpatrick]

Its starting to sound like we might just come out of this mess alright, time will tell though!

 

It all depends on buyers having hard cash, as it has done since all this started.

[tartofmidlothian]

Yup I know that, will they be able to sell of the shares separately to the stadium or is it an all or nothing, not that it might make any odds but could someone say "I'll give you ?1000 for the shares" ?

 

They could probably sell them separately but they must be worthless to anyone who doesn't own the stadium, unless they have the backing of the fans. For example if a developer buys Tynie and FoH buys the shares in the club, then surely the fans would follow them to reestablish the club elsewhere. Although any developer would probably have to get through a huge fan campaign to have them give up and sell the stadium back to us. You'd like to think so anyway.

 

Were you thinking of buying?

[Deevers]

Its starting to sound like we might just come out of this mess alright, time will tell though!

Yep it certainly looks that way and maybe we'll get away pretty well unscathed and debt free. If that does happen I just can't wait for the wailing and moaning from our wee neighbours!

[The Gasman]

 

One could interpret that as you knowing something.

 

I know of one serious group, who have not gone public with what they are doing. There may well be other groups (not Scandinavians, FoH, or Americans that we've heard of) who choose to operate outside the glare of publicity.

[Greenbank2]

I personally wouldn't want to push too hard for a deal until we know what's happened with UBIG. We still owe them 10m, buying the ground and UKIO shares just now I wouldn't wipe that. And as their loan is secured albeit in 3rd priority then if we obtain the ground before reaching an agreement with them then we would still be holding a large liability.

 

My brother was at the AGM and told me that the ?10M UBIG debt was unsecured? Can't they just go sing for it?

[Dr. Bapswent]

Is it really a good barometer? I thought the only reason that ridiculous deal went through was because Rangers had the most agreeable Administrators of all time on their side - probably also being put under huge pressure from the SFA, SPL and MSM?

 

And they have set a precedent that we should be allowed to follow - its a good enough starting point.

 

If Rangers - a bigger club than Hearts, can go for a pittance - then the liquidators will need to take this into account that this is the going rate for Scottish clubs - and as a result set their expectations along these lines.

 

Its just a set of guidelines - but I don't think you could hope for a more appropriate set of circumstances in the recent past.

[The Gasman]

 

You sure, are you, bearing in mind the abuse you and other decided to try and give me because I had been told on good authority that there were other interested parties when your vlad took over, man you can twist thing when it fit's when you want.

 

Sorry, but I have absolutely no idea what you're slavering about.

[Geoff Kilpatrick]

My brother was at the AGM and told me that the ?10M UBIG debt was unsecured?

 

The UBIG debt is effectively unsecured but they do have a floating charge on the assets. However, because it is lower than Ukio's there is nothing they can claim based on the asset base of the club.