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Ukio to be Liquidated (merged threads)


Mad Dog Frazer

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The Treasurer

Perhaps this news along with the supposed reduction in the wage bill will convince the non ST renewers that it is worth buying a ticket to keep things going for another couple of months to avoid 15 point deduction?

Sadly I think that anyone who hasn't renewed by now (unless for personal financial reasons) will not do so until the club is out of the hands of the current owners, however misguided that reasoning may be.

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We may end up with two sets of administrators, but the key one for Hearts interests will be Ukio's.

 

The reason for that is that the bulk of UBIG's debts will be owed (maybe even secured) to Ukio, hence the Ukio administrator will be able to dictate to a large extent how UBIG's assets are disposed of.

 

----------------------------------------------------------------------

 

While the security and the debt to Ukio are linked, it is the status of the debt that will determine what happens to the security, indeed the security could well become worthless.

 

Let's say FoH agreed a 10p in the ? settlement of the debt with Ukio. That would cost ?1.5M and even if the security wasn't assigned to FoH it would no longer have any value to Ukio as there would be no debt attached to it.

 

However, let's say Massone comes in and buys the debt and the security from Ukio for ?3M (20p in the ?). Massone could, in theory, have the debt and the security assigned to him. That could leave Hearts still with ?15M of debt and the security over Tynecastle assigned to him (out of the frying pan, into the fire). That is what Craig Whyte tried to do with RFC. He had the Lloyds debt (and securities over Ibrox and Murray Pak) assigned, at full value, to Wavetower, leaving RFC owing Wavetower ?18M instead of Lloyds. The only problem with that was the Whyte paid off Lloyds with money from future RFC Season Tickets sales via Ticketus, meaning that RFC had actually paid off Lloyds themselves.

 

Hearts fans should be wary about how any deal to purchase the club is structured, as we could easily end up with the same debts owed to a different owner.

Always been a worry that some would come along and see this as an opportunity to make a quick buck. That's why Massone and Co would be questionable "saviours" for the club. The next couple of weeks are going to be very interesting and I can see this place going into meltdown!!

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Footballfirst

So in other words we need to wait for the 'scarf above the head' type scenario in regards to FoH

 

I'm sure that Craig Whyte held the "scarf above the head" at Ibrox

 

In the Massone scenario. Could this be pre-empted by getting the smug bastart put on a list of not fit and proper owners? Then we would have one less hyena to deal with.

 

It would be nice to get Massone emptied but beggars can't be choosers.

 

In the Massone scenario I described above, if he paid ?3M to Ukio for the debt and security, I wouldn't have a problem if he initially ran Hearts with a ?3M debt to him secured on Tynecastle. However I would have issues if he charged excessive interest on the debt.

 

As I said we should be careful to look at the structure of any proposed deals, before supporting any specific buyer.

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Charlie-Brown

It doesn't change the fact Hearts are heading headlong towards an insolvency event as cash and income levels are exceeded by costs and outgoings so unless somebody buys us we are looking at a probable points deduction if when UBIG enter insolvency and a definite points deduction and signing embargo if we are forced into administration at some point.

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Guest Bilel Mohsni

It doesn't change the fact Hearts are heading headlong towards an insolvency event as cash and income levels are exceeded by costs and outgoings so unless somebody buys us we are looking at a probable points deduction if when UBIG enter insolvency and a definite points deduction and signing embargo if we are forced into administration at some point.

 

Christ... feels like I found a winning lottery ticket and then got mugged. :(

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Clerry Jambo

It doesn't change the fact Hearts are heading headlong towards an insolvency event as cash and income levels are exceeded by costs and outgoings so unless somebody buys us we are looking at a probable points deduction if when UBIG enter insolvency and a definite points deduction and signing embargo if we are forced into administration at some point.

Awe Charlie FFS..........we're still toasting the recent seemingly good news as a wee step in the right direction, gies a brek!!!!!! :raging:

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Charlie-Brown

At least we now know we have a willing seller that is a definite positive but it doesn't fundamentally change the financial reality that we are already holed beneath the waterline and only a sizeable injection of new money can prevent the inevitable.

It does make the potential buyers path a bit clearer so that is good news.

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It doesn't change the fact Hearts are heading headlong towards an insolvency event as cash and income levels are exceeded by costs and outgoings so unless somebody buys us we are looking at a probable points deduction if when UBIG enter insolvency and a definite points deduction and signing embargo if we are forced into administration at some point.

 

Yes, however it does mean that the door is opening to allow the start of proper negotiations with interested parties of which there are, according to some I believe, more than one.

 

Edit - just read your next post. :stooge_larry:

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Just to be clear, it is Hearts who own Tynecastle, not UBIG (at least directly) or Ukio.

 

What is effectively up for sale from Lithuanian administrators / liquidators will be Hearts debt to UBIG, Hearts debt to Ukio (complete with securities), shares held by UBIG and Ukio (if pledge taken up).

 

The shares themselves are effectively worthless so it is the debt purchase that is key.

Thanks for clarifying that for everyone. It gets the share issue out of the way. Based on other similar events typically debt in this situation will sell for 10-15p in the ? max which really means ?2.5m to ?5m is the range for any prospective buyer.
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On the Ukio Bankas liquidation itself - it is going to be interesting when or if the liquidators/regulators pierce the veil of what was actually happening at Ukio Bankas. Who were making the decisions, how did capital get allocated, how did so much depositor money end up funding the vanity purchases of a significant shareholder etc.

Doubt that we will ever find out. The Lithuanian Central Bank will keep that under wraps because clearly their lack of regulation is the primary cause of the scam.
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If this could be guaranteed, I'd happily pay a second time for my season ticket..! ;)

Maybe the new owners will have a membership scheme that will enable you to do just that. That would generate a ?3m windfall for operating capital.
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It doesn't change the fact Hearts are heading headlong towards an insolvency event as cash and income levels are exceeded by costs and outgoings so unless somebody buys us we are looking at a probable points deduction if when UBIG enter insolvency and a definite points deduction and signing embargo if we are forced into administration at some point.

Disagree. I think see the SPL's case for any sanctions.
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Guest oldcastlerock2012

Doubt that we will ever find out. The Lithuanian Central Bank will keep that under wraps because clearly their lack of regulation is the primary cause of the scam.

 

To be fair that could be applied to the global banking industry as we've seen over the last 5 years.

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Charlie-Brown

On the Ukio Bankas liquidation itself - it is going to be interesting when or if the liquidators/regulators pierce the veil of what was actually happening at Ukio Bankas. Who were making the decisions, how did capital get allocated, how did so much depositor money end up funding the vanity purchases of a significant shareholder etc.

 

Is Romanov really much different from the giants of Scottish banking and finance like Fred Goodwin, Peter Cummings, Gavin Masterton et al whose vanity projects, mates rates loans, questionable loans and capital allocation etc brought Bank of Scotland, Royal Bank of Scotland, Dunfermline building society crashing to their knees and needing Central Bank and tax payer bailouts to prevent the fractional reserve system from crashing around us.

 

Perhaps we need to pierce the corporate veil closer to home first?

 

Let him without sin cast the first stone.

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Guest Bilel Mohsni

 

 

Is Romanov really much different from the giants of Scottish banking and finance like Fred Goodwin, Peter Cummings, Gavin Masterton et al whose vanity projects, mates rates loans, questionable loans and capital allocation etc brought Bank of Scotland, Royal Bank of Scotland, Dunfermline building society crashing to their knees and needing Central Bank and tax payer bailouts to prevent the fractional reserve system from crashing around us.

 

Perhaps we need to pierce the corporate veil closer to home first?

 

Let him without sin cast the first stone.

 

I agree. Especially regarding the actions of one Scottish bank and one Scottish Football club in particular.

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Guest oldcastlerock2012

Is Romanov really much different from the giants of Scottish banking and finance like Fred Goodwin, Peter Cummings, Gavin Masterton et al whose vanity projects, mates rates loans, questionable loans and capital allocation etc brought Bank of Scotland, Royal Bank of Scotland, Dunfermline building society crashing to their knees and needing Central Bank and tax payer bailouts to prevent the fractional reserve system from crashing around us.

 

Perhaps we need to pierce the corporate veil closer to home first?

 

Let him without sin cast the first stone.

 

Wall St, City of London, whatever the financial bit of Edinburgh is called... they're all a shower of crooks who have ruined many lives and businesses through sheer greed and arrogance. Romanov's a footnote in all of that - nowhere near the worst culprit (if indeed he is proven to have been at it).

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Hackney Hearts

whatever the financial bit of Edinburgh is called

 

hibs.net

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Francis Albert

At least the Lithuanian liquidator sounds a bit more positive about the future of Hearts than many Hearts fans on here have been recently.

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Guest Bilel Mohsni

At least the Lithuanian liquidator sounds a bit more positive about the future of Hearts than many Hearts fans on here have been recently.

 

Incredible, eh?

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Is Romanov really much different from the giants of Scottish banking and finance like Fred Goodwin, Peter Cummings, Gavin Masterton et al whose vanity projects, mates rates loans, questionable loans and capital allocation etc brought Bank of Scotland, Royal Bank of Scotland, Dunfermline building society crashing to their knees and needing Central Bank and tax payer bailouts to prevent the fractional reserve system from crashing around us.

 

Perhaps we need to pierce the corporate veil closer to home first?

 

Let him without sin cast the first stone.

 

Hurrah. Romanov is only as big a ****** as Fred Goodwin. Now that we've got that bit of relativising out of the way, we can carry on praying that we're still going to have a club in the aftermath of his tenure.

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At least the Lithuanian liquidator sounds a bit more positive about the future of Hearts than many Hearts fans on here have been recently.

 

The fact that they plan to keep the club running as a going concern is great - season tickets will be fine for next season on that basis.

 

No idea if sale via UKIO can co-ordinate with UBIG debt but isn't admin free resolution possible? Much as SMG debt bought by Romanov at fraction of value?

 

Admittedly unlikely, but maybe?

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Boaby Ewing

Is Romanov really much different from the giants of Scottish banking and finance like Fred Goodwin, Peter Cummings, Gavin Masterton et al whose vanity projects, mates rates loans, questionable loans and capital allocation etc brought Bank of Scotland, Royal Bank of Scotland, Dunfermline building society crashing to their knees and needing Central Bank and tax payer bailouts to prevent the fractional reserve system from crashing around us.

 

Perhaps we need to pierce the corporate veil closer to home first?

 

Let him without sin cast the first stone.

 

Since when did RBS have 70 percent of its loan book tied up in Goodwin's own personal projects?

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Is Romanov really much different from the giants of Scottish banking and finance like Fred Goodwin, Peter Cummings, Gavin Masterton et al whose vanity projects, mates rates loans, questionable loans and capital allocation etc brought Bank of Scotland, Royal Bank of Scotland, Dunfermline building society crashing to their knees and needing Central Bank and tax payer bailouts to prevent the fractional reserve system from crashing around us.

 

Perhaps we need to pierce the corporate veil closer to home first?

 

Let him without sin cast the first stone.

 

Yes, in my opinion there is far greater chance of malfeasance at Ukio Bankas/UBIG.

 

Are you saying that Romanov brought down the bank?

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IF the club is now at the 'real' stage of being available and would be available at a knock down price, how many of the initial 4000 pledgers would be willing to 'donate/pledge' a significant lump sum to get the purchase price together e.g. 4000 pledgers x ?500 = ?2m. However, if 50% of the pledgers could 'donate/pledge' ?1000 the capital sum available to buy the club would be ?3m. If 25% of the pledgers 'donated/pledged' ?2500, 25% 'donated/pledged' a ?1000 and 50% 'donated/pledged' ?500 the sum available to potentially buy the club would be ?4.5m in cash! I also think there may be individuals/organisations willing to 'donate/pledge' significantly greater amounts thus reducing the burden on fans with less ability to 'donate/pledge' larger amounts.

 

If they are only going to get the same say as me, who puts in a tenner, probably not as many that would perhaps otherwise.

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If they are only going to get the same say as me, who puts in a tenner, probably not as many that would perhaps otherwise.

 

Nah, the difference between ?1000 and ?120 is bugger all in a big bucket like ?3,000,000. Can't really expect to be in charge on the back of either, so hopefully folks just help put the fire out by giving as much as they can, without worrying too much about any return, other than still having a football club to support (surely the most valuable thing anyhow)

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Nah, the difference between ?1000 and ?120 is bugger all in a big bucket like ?3,000,000. Can't really expect to be in charge on the back of either, so hopefully folks just help put the fire out by giving as much as they can, without worrying too much about any return, other than still having a football club to support (surely the most valuable thing anyhow)

 

It might be bugger all in the grand scheme of things to FoH as a whole, but to an individual, it is a lot of money and I doubt many could stretch to it. If I could, I would though, despite my views on voting rights I can't though. Pledged and renewed is as much as I can do at this time. .

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It might be bugger all in the grand scheme of things to FoH as a whole, but to an individual, it is a lot of money and I doubt many could stretch to it. If I could, I would though, despite my views on voting rights I can't though. Pledged and renewed is as much as I can do at this time. .

 

Sorry, haven't expressed myself very well. I meant to say that I don't think people would care about having the same voting rights if they contribute different amounts, when the situation is essentially an emergency.

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the general

 

 

 

Hurrah. Romanov is only as big a ****** as Fred Goodwin. Now that we've got that bit of relativising out of the way, we can carry on praying that we're still going to have a club in the aftermath of his tenure.

we will still have our club
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Francis Albert

The fact that they plan to keep the club running as a going concern is great - season tickets will be fine for next season on that basis.

 

No idea if sale via UKIO can co-ordinate with UBIG debt but isn't admin free resolution possible? Much as SMG debt bought by Romanov at fraction of value?

 

Admittedly unlikely, but maybe?

Admin free resolution is certainly possible and I have never really seen how anyone would gain from Hearts administration (well except for those prepared to gamble our future in order to dodge paying relatively modest tax bills). The Ukio Bankas liquidator seems to be of the same view about not needing or wanting to "harm Hearts". I like others am puzzled by his reference to a sale of Hearts, since I have thought that would be a matter more for Ubig's administrator or liquidator (in due course). I wonder if Ubig owes Ukio Bankas money (very likely, and lots of it) and whether if Ubig default on those debts (again very likely) the Ukio liquidator can get hold of Ubig assets, including Hearts?

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Sorry, haven't expressed myself very well. I meant to say that I don't think people would care about having the same voting rights if they contribute different amounts, when the situation is essentially an emergency.

 

Perhaps not initially, but long term some might. There has been suggestions, though, from me and others what FoH can offer as incentives, if its not voting rights, that will not incur the tax liabilities, such as VAT, that FoH believe discounts would.

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Perhaps not initially, but long term some might. There has been suggestions, though, from me and others what FoH can offer as incentives, if its not voting rights, that will not incur the tax liabilities, such as VAT, that FoH believe discounts would.

 

OK, original post replied to referenced one off contributions, hence my response.

 

To clarify, if an appeal was made for one off lump sums, I don't believe that any lack of a reward/incentive for larger one-off donations would be a significant barrier to those who could afford to making larger contributions, due to the critical nature of our situation.

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OK, original post replied to referenced one off contributions, hence my response.

 

To clarify, if an appeal was made for one off lump sums, I don't believe that any lack of a reward/incentive for larger one-off donations would be a significant barrier to those who could afford to making larger contributions, due to the critical nature of our situation.

 

Well if one is made, I hope you are proved right. I would give what I could, which is very little.

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Admin free resolution is certainly possible and I have never really seen how anyone would gain from Hearts administration (well except for those prepared to gamble our future in order to dodge paying relatively modest tax bills). The Ukio Bankas liquidator seems to be of the same view about not needing or wanting to "harm Hearts". I like others am puzzled by his reference to a sale of Hearts, since I have thought that would be a matter more for Ubig's administrator or liquidator (in due course). I wonder if Ubig owes Ukio Bankas money (very likely, and lots of it) and whether if Ubig default on those debts (again very likely) the Ukio liquidator can get hold of Ubig assets, including Hearts?

 

Yes. Perhaps UBIG will lose us as a debtor to UKIO as part payment for what they owe them. UKIO, will then sell it or take Xp in the pound for it, along with what we own them, so they recover more from us and UBIG than they otherwise would.

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Since when did RBS have 70 percent of its loan book tied up in Goodwin's own personal projects?

Since that twonk bought the rest of ABN for cash after they sold off the bit the bank really wanted (american credit card business) in a complete fit of pique thus toppling the first domino

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A poster with facts and common sense telling us what we want to hear. Hallelujah.

 

A bit like a reverse Sirgay.

 

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

 

Why to people continue to read the absolute arse-gravy he posts ? :vrface:

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Lord Beni of Gorgie

Given the news of the day I can only assume this board is riddled with Hobos. As good as we can hope for right now and apparently not doomsday

 

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Will make my bid of 10 million on sat after I've got my hands on the ?110 million euro lottery cash on Friday

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At least we now know we have a willing seller that is a definite positive but it doesn't fundamentally change the financial reality that we are already holed beneath the waterline and only a sizeable injection of new money can prevent the inevitable.

It does make the potential buyers path a bit clearer so that is good news.

 

We are getting ahead of ourselves with the celebrations but at least now there is a slight light at the end of the tunnel

 

Sent from my GT-I9305 using Tapatalk 4 Beta

 

 

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Yes. Perhaps UBIG will lose us as a debtor to UKIO as part payment for what they owe them. UKIO, will then sell it or take Xp in the pound for it, along with what we own them, so they recover more from us and UBIG than they otherwise would.

 

That's how I see it unfolding, but I have doubts about whether Hearts can stay clear of Administration long enough to allow it to play out. That wouldn't be a game changer though, just means when the new owner comes in we're -15, which isn't ideal.

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Francis Albert

We are getting ahead of ourselves with the celebrations but at least now there is a slight light at the end of the tunnel

 

Sent from my GT-I9305 using Tapatalk 4 Beta

Who is celebrating? All that's changed today is that there aren't quite as many idiotic "I can't take it any more, let's jump" type posts.

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This new positive news is fantastic, glad i lifted my head out the sand to get this positive news :11100:

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Will make my bid of 10 million on sat after I've got my hands on the ?110 million euro lottery cash on Friday

What's your split for the ?10m?

 

I'd go

 

?6m for the club - debt free to go to the UKIO/UBIG administration.

 

?4m working capital to fund shortfall for 3 years until the club gets back on it's feet.

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Rudi Skacel

Can I just ask a question, I dont really understand the in's and outs of things but the way im reading it is this.

 

If someone offers ?10 million for the club, the bid was accepted and everything transfered over to the new owner, would then that be us debt free or would we still owe money to UBIG/Ukio?

 

All hypothetically speaking of course, I know its more complicated than that, but is that the general idea?

 

Ta.

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The way I see it ... If a business is sold while solvent then they'll be worth far far more than when insolvent, why on earth would the Administrators let us go into Administration as the 15 point deduction would also reduce our value as there's a bigger risk of relegation.

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Can I just ask a question, I dont really understand the in's and outs of things but the way im reading it is this.

 

If someone offers ?10 million for the club, the bid was accepted and everything transfered over to the new owner, would then that be us debt free or would we still owe money to UBIG/Ukio?

 

All hypothetically speaking of course, I know its more complicated than that, but is that the general idea?

 

Ta.

 

Essentially yes, you are correct. However, because we don't have a lump sum together anywhere (as far as I can tell), the club will be paid for in installments. Once all the installments are paid, we emerge debt free, lean mean and all of that.

 

In practical terms, I don't see a bank in the UK lending us the cash, so it'll be the guys holding UKIO/UBIG that let us pay in installments, ie effectively give us credit.

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Essentially yes, you are correct. However, because we don't have a lump sum together anywhere (as far as I can tell), the club will be paid for in installments. Once all the installments are paid, we emerge debt free, lean mean and all of that.

 

In practical terms, I don't see a bank in the UK lending us the cash, so it'll be the guys holding UKIO/UBIG that let us pay in installments, ie effectively give us credit.

 

I don't think that'll be the way it works, the liquidator has no interest in payment plans it will be lump sum of whoever offers the most. I may be wrong though as FoH have hinted at a loan and pledge deal which will probably becomd clearer after the meeting on Friday. I dint think we'll need to pay 10m it may not even be half that

 

Sent from my GT-I9305 using Tapatalk 4 Beta

 

 

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