• Text size      
  • Send this article to a friend
  • Print this article

BDO appointed to run Hearts in administration

BDO were today appointed to control the financial affairs of Hearts two days after the club announced their intention to go into administration.

A formal announcement from the accountancy firm is expected later after the appointment was finalised early this afternoon.

Hearts had hoped to appoint KPMG but the administrators of Ukio Bankas, their major creditor and part owner, objected and instigated the appointment of BDO.

Hearts lodged their intention to go into administration on Monday after failing to pay wages to players last Friday and in the face of a winding-up order over a partially-paid £100,000 tax bill.

The Lithuanian insolvency firm looking after the affairs of Ukio Bankas soon took control of the situation as the bankrupt financial institution is owed £15million from Hearts, two-third of the club's total debt.

Given the bank holds a floating charge over the club's assets, including Tynecastle Stadium, its choice of administrator was destined to succeed and the appointment went through without the need for a court hearing.

Once the paperwork is sent to the Scottish Premier League, Hearts will be automatically deducted a third of last season's points tally, meaning they will start their campaign at St Johnstone on August 3 on -15 points.

Contextual targeting label: 

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.