David McCaig Posted July 7, 2008 Share Posted July 7, 2008 http://www.heartsfc.premiumtv.co.uk/page/HeartsNewsDetail/0,,10289~1339523,00.html Link to comment Share on other sites More sharing options...
Dirk Diggler Posted July 7, 2008 Share Posted July 7, 2008 Well there you go. Link to comment Share on other sites More sharing options...
Guest JamboRobbo Posted July 7, 2008 Share Posted July 7, 2008 Excellent news. Well done Vlad. Link to comment Share on other sites More sharing options...
interista Posted July 7, 2008 Share Posted July 7, 2008 Good news. Well done Vlad. Now please appoint a manager and do some dabbling in the transfer market:sheep: Link to comment Share on other sites More sharing options...
Munch Posted July 7, 2008 Share Posted July 7, 2008 I am stunned, The text rumour was 50% right, Good news id say.:Hearts Man dance: Link to comment Share on other sites More sharing options...
200milesfromgorgie Posted July 7, 2008 Share Posted July 7, 2008 I am stunned, The text rumour was 50% right, Good news id say.:Hearts Man dance: Link to comment Share on other sites More sharing options...
bn jambo Posted July 7, 2008 Share Posted July 7, 2008 Sounds good, but does this mean the value of the club goes up, which would stop any potential buy out of the club near impossible? Link to comment Share on other sites More sharing options...
Pants Shaton Posted July 7, 2008 Share Posted July 7, 2008 This seems to be excellent news. Financial wizards, I know nothing whatsoever about financial matters - are there any downsides? Hibs embarrass themselves in Europe again, then this. If we appoint a real manager, this could be a pretty good week to be a Jambo. Link to comment Share on other sites More sharing options...
Dirk Diggler Posted July 7, 2008 Share Posted July 7, 2008 Can anyone help me, Say for arguments sake after the sale of Gordon, Bednar etc our debt level is approx 27 million, after this, will our debt level be reduced to 15million? Or is that too simple? Link to comment Share on other sites More sharing options...
Therapist Posted July 7, 2008 Share Posted July 7, 2008 Well done Mr Romanov. :sheep::sheep: Link to comment Share on other sites More sharing options...
Therapist Posted July 7, 2008 Share Posted July 7, 2008 Can anyone help me, Say for arguments sake after the sale of Gordon, Bednar etc our debt level is approx 27 million, after this, will our debt level be reduced to 15million? Or is that too simple? That's exactly what it means. Link to comment Share on other sites More sharing options...
Dirk Diggler Posted July 7, 2008 Share Posted July 7, 2008 That's exactly what it means. Well then, Excellent news indeed. Well done Vlad. Now for that manager....... Link to comment Share on other sites More sharing options...
Coco Posted July 7, 2008 Share Posted July 7, 2008 This dilutes the current shareholders to virtually nominal amounts. May well give UBIG the right to squeeze out all the existing minority shareholdings. Will also make it easier for UBIG to sell the club in a less embarassing manner - ie their loss would be more concealed. Link to comment Share on other sites More sharing options...
No Nonsense Posted July 7, 2008 Share Posted July 7, 2008 This financial surgery can only be a good thing in my opinion. Now for some surgery of the day to day management of the football club, and we may be able to look forward to the new season... Link to comment Share on other sites More sharing options...
Guest JamboRobbo Posted July 7, 2008 Share Posted July 7, 2008 Can anyone help me, Say for arguments sake after the sale of Gordon, Bednar etc our debt level is approx 27 million, after this, will our debt level be reduced to 15million? Or is that too simple? Pretty much. Only potential issue is that the Gordon and Bednar money hasn't appeared on Hearts accounts yet, but it should do in the next set of accounts. Link to comment Share on other sites More sharing options...
Munch Posted July 7, 2008 Share Posted July 7, 2008 I like the way that news just appears on the web site in the morning before the press can get a hold off it, Nice One Vlad. I got a feeling this is going to be a very good week, the stampede for season tickets will start shortly me thinks. Glad i renewed now.:Hearts Man spotrun: Link to comment Share on other sites More sharing options...
Genghis Khan Posted July 7, 2008 Share Posted July 7, 2008 This dilutes the current shareholders to virtually nominal amounts. May well give UBIG the right to squeeze out all the existing minority shareholdings. Will also make it easier for UBIG to sell the club in a less embarassing manner - ie their loss would be more concealed. This takes UBIG from 90% to 96% approximately - the existing minority shareholders only have a certificate foe sentimental reasons. I don't think the extra 6% will make much difference to your 'nominal amount' comment. Meanwhile, the club saves ?600K pa on interest charges. Link to comment Share on other sites More sharing options...
bigmeg Posted July 7, 2008 Share Posted July 7, 2008 This is the first bit of good news we have had in months...maybe years. The debt being reduced to 15 million means we have a little breathing space and brings our debt alomost in alignment with other teams (Aberdeen 10 million). A little more shrewdness in the transfer market can see the 15 million brought down. If you look at it we could have had around 4 or 5 million for Driver,Berra and Jose. All these players are easily replaceable and we knock 33% of our debt. Well done Vlad. Now get a manager Link to comment Share on other sites More sharing options...
Coco Posted July 7, 2008 Share Posted July 7, 2008 One other factor which I am not 100% sure of - just speculation. It is conceivable that this just 'capitalises' the haircut that Bank of Scotland may have taken when they 'sold' Hearts debt on. Given that they wrote Hearts debt down to zero value, they may well have taken a hit in selling it on. So under that scenario it doesn't 'cost' UBIG anything to swap to equity. I think that the previous 'debt forgiveness' on the SMG debt probably was the same. Bought the debt for below face value and 'forgave' down to the price paid. Link to comment Share on other sites More sharing options...
The People's Chimp Posted July 7, 2008 Share Posted July 7, 2008 The professors of hobonomics will be spluttering over their morning tabloids today. An absolute embarassment in the intertattie yesterday and then a ?12M hearts' debt reduction the next day.... Link to comment Share on other sites More sharing options...
Dr. Bapswent Posted July 7, 2008 Share Posted July 7, 2008 Surely there must be some negative spin on this? Vlad ready to do a runner....hmmm. Shifting the debt...hmmm Lowering the debt as Vlad is going to sell up and bolt..hmmm Link to comment Share on other sites More sharing options...
Pants Shaton Posted July 7, 2008 Share Posted July 7, 2008 What UBIG lose in converting the debt to shares, they gain by increasing the value of the club, if they decide to sell? Link to comment Share on other sites More sharing options...
Cliffundo Posted July 7, 2008 Share Posted July 7, 2008 Well done Vlad. I feel this shows the direction you want to take the club. Can we sort out the management now and once again your name will ring round tynecastle. PS If the ?12mill excludes monies taken in from the sale of players (this is not the money used for the equity swap) over the last year, then it's a great piece of news as we will be around the ?13-15mill in debt and on the road to recovery. Link to comment Share on other sites More sharing options...
Dr. Bapswent Posted July 7, 2008 Share Posted July 7, 2008 What UBIG lose in converting the debt to shares, they gain by increasing the value of the club, if they decide to sell? Somebody has to own the club. If its not the fans, why not UBIG? How would they be different from any other company? Link to comment Share on other sites More sharing options...
Coco Posted July 7, 2008 Share Posted July 7, 2008 What UBIG lose in converting the debt to shares, they gain by increasing the value of the club, if they decide to sell? There is no difference in the value of the club. Link to comment Share on other sites More sharing options...
Jam Tarts 1874 Posted July 7, 2008 Share Posted July 7, 2008 Apart from saving ?600k in interest, the most important outcome is that the reduced debt gives Hearts more options with regard to funding the re-development. As I keep saying on here, it's all about the long term viability of the club. UBIG are demonstrating with this move that they and Romanov are in this for the long term. Let's see the pitch-fork merchants put a negative slant on this one. Link to comment Share on other sites More sharing options...
Captain Canada Posted July 7, 2008 Share Posted July 7, 2008 All we need now is a manager to 'develop' us on the field. Surely it will be this week, all this JKB watching is playing havoc with my work! Link to comment Share on other sites More sharing options...
Coco Posted July 7, 2008 Share Posted July 7, 2008 This takes UBIG from 90% to 96% approximately - the existing minority shareholders only have a certificate foe sentimental reasons. I don't think the extra 6% will make much difference to your 'nominal amount' comment. Meanwhile, the club saves ?600K pa on interest charges. This would take UBIG past 90% and allow them to squeeze out all other shareholders at a time of their choosing. Link to comment Share on other sites More sharing options...
Colonel Kurtz Posted July 7, 2008 Share Posted July 7, 2008 It is good news for all except the minority shareholders Bir remember the SMG deal that was hailed as good news at the time. Thefinal statement on attracting more external investment fot The Tynecastle Development is by far the most important one ,and I think is the precursor of really good news Link to comment Share on other sites More sharing options...
Munch Posted July 7, 2008 Share Posted July 7, 2008 The professors of hobonomics will be spluttering over their morning tabloids today. An absolute embarassment in the intertattie yesterday and then a ?12M hearts' debt reduction the next day.... Guaranteed they will come up with something, now if Vlad gets us a decent manager ,and a few new players. It will be tears in there beers.:Hearts Man spotrun::Hearts Man dance: Link to comment Share on other sites More sharing options...
Jammy T Posted July 7, 2008 Share Posted July 7, 2008 Sounds like good news although I've never really understood "debt for equity" swaps. Its always made to sound like a load of debt just disappears, which cant be the case. Anyway, this appears good news for those of you worried about the debt. As with anything at Hearts the devil is in the detail, and until there is an accountant with a scarf above his head it is just a proposal. Its sickening to see Rodney Romanov anywhere near the official workings of the club though Interestingly if ?12m is 30% of the debt of the club, as is reported, this puts the total debt currently at ?40m. Thats at least ?10m (25%) more than most people on here think. And more than I could fathom it to be given all the transfer fees incoming to the club and all the cost cutting over the last 24 months. I hope this isnt just some sort of slight of hand that sounds better than it is just to buy more time for the regime.... Link to comment Share on other sites More sharing options...
Ron 5 Posted July 7, 2008 Share Posted July 7, 2008 Correct me if i'm wrong but is this not a slightly different spin on the SMG deal which saw them release convertible loan stock in the club? Also i'm curious what they term "equity" given that the only real equity we would have is in Tynie? A rather vague description of goings on as usual and I will meet this with skepticism until more in depth details are published. Link to comment Share on other sites More sharing options...
Seymour M Hersh Posted July 7, 2008 Share Posted July 7, 2008 This dilutes the current shareholders to virtually nominal amounts. May well give UBIG the right to squeeze out all the existing minority shareholdings. Will also make it easier for UBIG to sell the club in a less embarassing manner - ie their loss would be more concealed. I don't mind that Coco to be honest. Only bought them for sentimental reasons (at 14p) and the the share with the crest on it. Never ever to make a financial killing. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted July 7, 2008 Share Posted July 7, 2008 In practical terms, the only difference is that the club is effectively privately owned by UBIG and Romanov (assuming they can be treated as a concert party). In theory, they could force the remaining shareholders to sell to them but I doubt they'll bother with that. It's welcome news but those who wish to pore over the accounts and look up amateur websites will be disappointed in the future. And for those who worry about Vlad "selling up and winding up", it's even easier now (that'll relieve the :hobofish:s on here). Now let's get things sorted ON the park, please. Link to comment Share on other sites More sharing options...
Dr. Bapswent Posted July 7, 2008 Share Posted July 7, 2008 What it means is Vlad and UBIG have more to lose if the value of the club goes downhill from performing poorly. They own the land, AND the club. Both are assets. I would see no value in scuttling one to capitalize on the other, when you might as well capitalize on both. Link to comment Share on other sites More sharing options...
Coco Posted July 7, 2008 Share Posted July 7, 2008 I don't mind that Coco to be honest. Only bought them for sentimental reasons (at 14p) and the the share with the crest on it. Never ever to make a financial killing. Yep, that's fair enough. But you might be asked to return your certificate in the future at some point when UBIG ask for it! I think a few might be 'lost' at that point! I only know one person who really made money from Hearts shares! Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted July 7, 2008 Share Posted July 7, 2008 Correct me if i'm wrong but is this not a slightly different spin on the SMG deal which saw them release convertible loan stock in the club? Also i'm curious what they term "equity" given that the only real equity we would have is in Tynie? A rather vague description of goings on as usual and I will meet this with skepticism until more in depth details are published. This is effectively the reverse of the SMG deal. SMG had the right to convert their loan stock into shares, but didn't, and demanded the money back. UBIG have lent us the money and, rather than claim it back, have taken a bigger ownership of the company instead. Link to comment Share on other sites More sharing options...
Therapist Posted July 7, 2008 Share Posted July 7, 2008 Also i'm curious what they term "equity" given that the only real equity we would have is in Tynie? 12 million of debt owed to UBIG/UKIO will be cancelled in exchange for shares (aka equity) that will be owned by UBIG/UKIO. Link to comment Share on other sites More sharing options...
Munch Posted July 7, 2008 Share Posted July 7, 2008 Yep, that's fair enough. But you might be asked to return your certificate in the future at some point when UBIG ask for it! I think a few might be 'lost' at that point! I only know one person who really made money from Hearts shares! THE PIEMAN. Link to comment Share on other sites More sharing options...
doctor jambo Posted July 7, 2008 Share Posted July 7, 2008 So, since gaining power Romanov has pumped ?14 million of his own money into the club (SMG + equity swap) This would make us totally solvent again! Not seen that for a loooooong time Couldnt't give a flying feck if Romanov picks the team now frankly ?12 million buys a LOT of grace from me Lucky my daughter was born weeks ago or there would be a strong push to name her Vladimir Link to comment Share on other sites More sharing options...
Coco Posted July 7, 2008 Share Posted July 7, 2008 THE PIEMAN. Don't think that he made any money on the shares. Link to comment Share on other sites More sharing options...
washniklaw Posted July 7, 2008 Share Posted July 7, 2008 If the ?12mill excludes monies taken in from the sale of players (this is not the money used for the equity swap) over the last year. Thats my only worry, the 12 million would (roughly) equate to our transfer receipts for the last year. Link to comment Share on other sites More sharing options...
Coco Posted July 7, 2008 Share Posted July 7, 2008 So, since gaining power Romanov has pumped ?14 million of his own money into the club (SMG + equity swap)This would make us totally solvent again! Not seen that for a loooooong time Couldnt't give a flying feck if Romanov picks the team now frankly ?12 million buys a LOT of grace from me Lucky my daughter was born weeks ago or there would be a strong push to name her Vladimir I don't think either of these 'cost' any money. I think that there were haircuts on both the SMG and the BoS debt transfers. Link to comment Share on other sites More sharing options...
H2 Posted July 7, 2008 Share Posted July 7, 2008 Sounds positive but like for many it's not crystal clear to me. Is it as simple as ?12M worth of debt noew becomes ?12M worth of shares? Link to comment Share on other sites More sharing options...
Pants Shaton Posted July 7, 2008 Share Posted July 7, 2008 I think that many of those who opposed season ticket non-renewal and talk of organised protests may find this difficult to believe: Most of us who have expressed discontent would be delighted if Vladimir Romanov turns things around. Most people on this forum want only what is best for Hearts and the vast majority of 'protesters' do not want Romanov out. Did the low rate of ST renewal or threat of other organised protest have any influence on today's announcement? Definitely not. That said, most people have not been aggrieved by financial issues or issues related to stadium redevelopment. Most supporters are annoyed by the self-inflicted wounds (failure to appoint an autonomous manager and interference in team selection) which have significantly impaired the performance of the SPL's 3rd most expensive squad of players. Today's announcement certainly appears to indicate a commitment to the medium term development of the club. I can only hope this is followed up by the appointment of a manager which fulfills the promise made on January 1st. If the club genuinely is in a position to progress (both in business and footballing terms), it remains a huge failing of the current regime that this message does not translate to goodwill amongst the support. Not a reflection of an ungrateful support - if anything the loyalty in maintaining 13,500 season tickets through 2006/2007 and 2007/2008 was remarkable. It reflects appalling PR. Rather than closing down channels of communication, as Romanov intimated to Charlie Mann, it is time to reconnect with the support. If there are reasons to be optimistic, let's hear about them. Changing your mind for no good reason: that's fickle. Changing your mind on the basis of evidence: that's rational. Let's hope he gives us more evidence to change our minds. Link to comment Share on other sites More sharing options...
Guest JamboRobbo Posted July 7, 2008 Share Posted July 7, 2008 It is good news for all except the minority shareholders Well I'm a minority shareholder and I think it's good news. My shareholding was never about making money anyway - otherwise the shares wouldn't be in HMFC. Link to comment Share on other sites More sharing options...
Guest juvehearts Posted July 7, 2008 Share Posted July 7, 2008 Thank Goodnerss at last!!!! a postive topic on JKB & finally some news all be it good from Hearts! Hibs pumped in the intertattie & hearts announced this on monday. good start to the week now........................................... manager? believe again?! Link to comment Share on other sites More sharing options...
Pants Shaton Posted July 7, 2008 Share Posted July 7, 2008 There is no difference in the value of the club. A business with ?20m assets and ?15m debt MUST be worth more than one with ?20m assets and ?27m debt. Link to comment Share on other sites More sharing options...
Derby Dominance Posted July 7, 2008 Share Posted July 7, 2008 I don't think either of these 'cost' any money. I think that there were haircuts on both the SMG and the BoS debt transfers. This is really hurting you isn't it? ?12m of debt gets written off and all you can do is look for negatives. Of course it cost money. If I owe you ?100 and you decide to write it off then it has cost you ?100. Link to comment Share on other sites More sharing options...
Dr. Bapswent Posted July 7, 2008 Share Posted July 7, 2008 And the club communicated this issue to the fans. We have a statement clarifying the financial changes afoot. Of course, many will say, its ok when they have positive news. But I think this is simply how its done. Link to comment Share on other sites More sharing options...
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