Hibernian close in on deal with bank to eat into £8m debts

The Easter Road outfit insisted that talk of a 'total' debt write-off was 'not based on fact' and was 'speculative' but it is understood discussions among the club, the holding company and the bank centre on significantly reducing Hibs' arrears.

Discussions are said to have been on-going for 'some time' as Leeann Dempster, the chief executive, and chairman Rod Petrie devise a plan for the long-term future of the club, which is owned by Sir Tom Farmer.

These proposals will be unveiled at the club's annual general meeting, which normally takes place in October but has been delayed until January 28 to allow talks to be concluded with the bank.

In a carefully-worded statement, Dempster said: "Discussions have taken place involving the club, HFC Holdings and the bank.

"We have decided to hold the agm slightly later than usual in order to allow these talks to be concluded.

"The outcome will be reflected in the board's plans for the future which we will present at the agm and talk in detail to our supporters."

The club have had to endure a turbulent time since the team's calamitous relegation from the Premiership in May, with an initial campaign to oust Rod Petrie from the club having sprung up before being replaced by a number of disparate bids to take over Farmer's majority shareholding.

One consortium involving a former chairman, Malcolm McPherson, was rejected, while Forever Hibernian, led by their former player Paul Kane, failed to gain any traction during talks with the club's board. Kane has since thrown his weight behind BuyHibs, which has urged Farmer to meet with them and 'name his price' for a takeover they plan to be funded by business backers and monthly pledges from fans.

BuyHibs have so far turned down the opportunity to discuss their plans with anyone other than Farmer and Petrie and it is not clear how much financial support they have been able to garner since being launched with the backing of club legend Pat Stanton last month.

The last accounts filed by the Edinburgh outfit, for the year to July 31 2013, show a net debt of around £5.5m. The majority of the club's bank debt is owed in the form of mortgages taken out for the redevelopment of Easter Road, with some money also due to Farmer's holding company.

The most up-to-date figures will be released shortly before the agm in January but will cover the 12 months to July 2014 and will not show the true financial impact of life in the Championship this season.

Rumours of mounting losses have swept the fan-base in recent times as speculation mounted over the reason for the delay in the club's agm.

However, in their brief statement, the club added: "Hibernian FC today announced that the agm for shareholders will take place on January 28. This will allow complex negotiations between the club, the holding company and the bank to be concluded.

"The talks have been on-going for some time, and have focused on the club's long term future. Media reports of a total debt write-off are not based on fact, and are speculative."

A debt-free Hibs would clearly be more attractive should Farmer wish to sell his 90 per cent share but he has maintained his stance that any new owners would have to be 'right' for the club.

Having rescued the Easter Road outfit from the clutches of an unwanted takeover by Hearts' Wallace Mercer and the brink of receivership in 1990, Farmer has talked of saving the club for the local community and is said to be keen to leave a 'legacy'.

Whether this includes selling his stake remains to be seen but one report yesterday put Edinburgh-born businessman Richard Skellett in pole position to take over the club should the 74-year-old Farmer wish to sell up.

The CEO and chairman of Allied Worldwide, an IT managed services company based in High Wycombe near London, Skellett is said to have been involved in discussions with Hibs for the last two years and was pictured at Easter Road for the Edinburgh derby against Hearts in October.