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Hearts get the knock from HMRC; Well, it's been coming.
Topic Started: Nov 7 2012, 02:02 PM (6,195 Views)
Tom_Boland
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Ivan Golac
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American company called Club 9 behind this.

http://www.bbc.co.uk/sport/0/football/23245412

Sure its no Cloud 9 ?
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whatsthatonyourback
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Waldo Jeffers
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I think Club 9 are just agents for someone else, sorting out whatever consortium of people want to bid together.
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Naebody
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Twat
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Excellent. We're into the "random shyster" stage of the story.

I wonder what kind of people might be interested in owning a structurally unprofitable company with one hugely valuable fixed asset, a nearly-bombproof annual revenue and an operating environment that encourages huge sums of money to be passed across international borders with barely any scrutiny?

Hm.
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whatsthatonyourback
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Waldo Jeffers
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Naebody
Jul 11 2013, 11:44 AM
Excellent. We're into the "random shyster" stage of the story.

I wonder what kind of people might be interested in owning a structurally unprofitable company with one hugely valuable fixed asset, a nearly-bombproof annual revenue and an operating environment that encourages huge sums of money to be passed across international borders with barely any scrutiny?

Hm.
Whatever could you mean, Naebs?
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Morvant's Finest
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Tommy McLean
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UKIO Bankas' Administrator says no to initial offers from BDO.

So err, if they are liquidated what happens with regards to the club fulfilling it's fixtures in the Premiership this season. If only we had a contemporary comparison....

Story from the BBC:
Quote:
 
Hearts face the prospect of liquidation unless someone outstrips present offers for the club by millions, administrator Bryan Jackson has warned.

Jackson's counterpart looking after the affairs of the club's owner, Ukio Bankas, has said none of the three bids received for Hearts are acceptable.

And the bank's administrator has warned that liquidation is a possibility.

Jackson believes the bank administrator would prefer a deal to be done but has urged bidders to offer more money.

The club's administrator, BDO, has been working with three interested parties and initial indications were that the difference required to allow a deal to progress was less than £1m.

“I can repeat that we are doing everything we can to save the club. However, I am obliged to protect solely the interests of Ukio Bankas and its creditors”

Negotiations will continue in an attempt to find a solution and Jackson said: "I don't know the exact shortfall, but there is quite a gap still to go.

"It could be coming into millions. It is not millions as in another five million, I wouldn't have thought, so it's hard to say can the bidders get there.

"I am of the opinion that they would be prepared to liquidate if they felt that was in the best interests of their creditors.

"However, having said that, I still think they are sympathetic to the club being sold as a football club and, in some ways, it might be quicker and easier for them to realise the asset by going down that route."

Hearts owe £10m to UBIG, which owns 50% of the club's shares, but these had been frozen after the bank it also owned entered an insolvency process with debts of around £380m.

Supporters' consortium the Foundation of Hearts, HMFC Limited and Five Stars Football Limited all provided proof of funding on Wednesday.

However, negotiations will only take place with two of the interested groups after the HMFC Limited proposal was discarded by the administrator.

Hearts have debts of £25m - owed to companies formerly owned by Vladimir Romanov, who first invested in the club in 2005.

Ukio Bankas, which is also in the hands of an administrator, is owed £15m and Tynecastle Stadium is held as security for the liability.

The Lithuanian bank has a 29.9% shareholding in Hearts.

The administrator in charge of Ukio Bankas, Gintaras Adomonis, said: "I can repeat that we are doing everything we can to save the club functioning.

"However, I am obliged to protect solely the interests of Ukio Bankas and its creditors.

"If no feasible offer with terms and conditions acceptable to Ukio Bankas creditors is achieved, Ukio Bankas will remain with the only solution - liquidation of Hearts of Midlothian Plc and enforcement of the standard security over Tynecastle stadium.

"I sincerely hope this is the way of things we still can avoid.
Ian Murray, independent chair of Foundation of Hearts

Ian Murray believes the Foundation Of Hearts' proposal carries "the lowest risk"

"Hearts' administrator, BDO, received three offers from investors, none of which were acceptable. Last week, the potential investors presented improved offers.

"However, the main creditor's expectations were still not met. Ukio Bankas approved the administrator's proposal to continue negotiations with the two potential investors.

"The third investor's - HMFC Limited - offer was rejected."

The Foundation of Hearts said it was very much "business as usual".

Ian Murray MP, independent chair of the FOH, said: "Our bid team, working on behalf of the Foundation of Hearts, continues to negotiate on the points of the bid submitted on our behalf to BDO.

"Meetings are scheduled for this week and have been since our revised bid and proof of funding was submitted last Wednesday, as requested. It's very much business as usual.

"We remain hopeful that we can demonstrate to the club's creditors that our proposal provides the strongest return and carries the lowest risk, in short, by far the best solution."
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Tom_Boland
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Ivan Golac
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Aye Morvant. Saw that on the BBC. No exactly lookin promising is it.
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Setenza
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Knitting with only one needle
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Sounds like a threat to get more money, wonder if anyone has it.
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Morvant's Finest
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Tommy McLean
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Setenza
Jul 30 2013, 02:59 PM
Sounds like a threat to get more money, wonder if anyone has it.
Yep, suppose the amount offered by a fan backed bid is always going to be a bit arbitrary given the nuclear option if they don't raise more, so maybe no surprise they're trying to rustle up a few extra pounds.
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Morvant's Finest
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Tommy McLean
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The full gory details from The Scotsman:
Quote:
 
HEARTS administrators BDO have revealed that the club owe £28.5 million after sending a ­detailed report of the club’s debts to all 200 creditors.

The full extent of Hearts’ ­financial predicament has been laid bare in a 45-page document compiled by the troubleshooter.

It was previously thought that the Tynecastle club’s arrears stood at about £25m following years of financial mismanagement under departed owner Vladimir Romanov.

• In full: Hearts list of creditors

But the dossier paints a more bleak picture. As well as the £15.5m and £8.2m due to Ukio Bankas and UBIG – Russian businessman Romanov’s collapsed companies in Lithuania – other significant creditors are also listed. This includes £1.9m due to Her Majesty’s Revenue and Customs. This debt is due from a £1.75m tax case that the club lost last year when they agreed a repayment plan of three separate £500,000 instalments.

A total of £1.7m is owed to Milson Capital Corp and Ensco 165 Ltd, companies thought to be controlled by Romanov. ­Milson loaned £1.2m last season to pay players’ wages.

The report states that Hearts owe a total of £535,000 in football debt, which must be repaid in full by any new owners. Liverpool are due £47,000, while the likes of Rangers, Livingston, Ayr United and Stenhousemuir are waiting on smaller amounts.

The club is also in arrears to their training base landlords Heriot Watt University to the tune of £146,000.

Creditors are due a total of £28,424,336 but that amount could rise further with BDO expecting more claims.

Hearts supporters rallied behind the stricken club when it was plunged into administration on 19 June amid grave cashflow problems.

More than £813,000 was brought in from additional season ticket sales, while main sponsors Wonga gave an advance of £103,000.

Compensation income from the departure of Arvydas Novi­kovas to German outfit Erzgebirge Aue amounts to £84,000.

For the period of 19 June to 26 July, a total of £1,269,107 came into the club, with £310,630 going out, including £212,000 on wages.

The report notes that the 18 employees made redundant (13 office staff and five players) are listed as preferential creditors, with their claims being processed by the Department of Trade and Industry and expected to be in the region of £90,000.

A meeting of the creditors and BDO is due to take place at Tynecastle on 12 August for “the purpose of considering the Joint Administrators’ proposals and determining whether to establish a Creditors’ Committee”.

The administrators for the club’s biggest creditor Ukio Bankas this week told the two parties bidding to take over the club that they must improve their offers. Fans group the Foundation of Hearts submitted a £3m offer for a Company Voluntary Arrangement, while Angelo Massone’s Five Stars Limited tabled £4m. BDO will name a preferred bidder from the two and that group will hope to reach a pound-in-the-pence CVA debt compromise with the club’s creditors.

• HEARTS will discover today whether they are to face any punishment from the SFA for plunging into administration.

The Judicial Panel Tribunal has been rearranged for 1.30pm today after the planned 18 July hearing was postponed. Hearts’ joint-administrator Bryan Jackson is expected to attend the Hampden meeting. The club were issued with a notice of complaint by the SFA for breaching disciplinary rule 14(g), ‘suffering an insolvency event by entering into administration’. Penalties available to the panel include a fine, signing embargo and suspension or termination of Hearts’ SFA membership. Hearts are already under a signing ban while the club remains in administration.
For those with a macabre interest in these things, the full list of creditors is here.
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Micky
Gordon Chisholm
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So they're fooked.

:haha:

Melville, Whyte, Romanov. Who next in the list of saviours to bring down once fine institutions?
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Morvant's Finest
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Tommy McLean
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Micky
Aug 1 2013, 12:39 PM
So they're fooked.

:haha:

Melville, Whyte, Romanov. Who next in the list of saviours to bring down once fine institutions?
To be honest, it's mainly their creditors who are going to get fooked Micky.

Though anybody buying the club will take on the burden of any football debts:
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The Scottish Football Association, which is owed £5,500, is almost certain to insist that any new owner of the club inherits the "football debt".

Money owed in wage arrears combined with cash for players made redundant and fees outstanding to Liverpool, Rangers, Ayr United, Kaunas, Musselburgh Athletic, Livingston, Stenhousemuir and Musselburgh Athletic totals £535,000.
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whatsthatonyourback
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Waldo Jeffers
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Micky
Aug 1 2013, 12:39 PM
So they're fooked.

:haha:

Melville, Whyte, Romanov. Who next in the list of saviours to bring down once fine institutions?
Bit harsh on Craig Whyte, Micky. The blame for the Rangers suicide is much more widely spread. He didn't get to buy them for £1 for no reason.
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whatsthatonyourback
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Waldo Jeffers
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Morvant's Finest
Aug 1 2013, 12:44 PM
it's mainly their creditors who are going to get fooked Micky
True, but it remains to be seen whether a Hearts will still be playing football, never mind in the SPFL, at the end of this coming season.

And even if they survive in some form, where they are playing could be interesting.
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Naebody
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Twat
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Morvant's Finest
Aug 1 2013, 11:55 AM
Quote:
 
main sponsors Wonga gave an advance of £103,000.


(Insert obvious joke here.)

Quote:
 
A total of £1.7m is owed to Milson Capital Corp and Ensco 165 Ltd, companies thought to be controlled by Romanov. ­Milson loaned £1.2m last season to pay players’ wages.

This tweaked my interest. It appears Ensco (listed as a consortium) attempted to buy the handsome old Odeon Cinema on Clerk Street but was knocked back because it couldn't say what it planned. The only director I can identify is Hearts' former HR manager (who, incidentally, appears with the Hearts events manager in this charming Sun press shoot).

So how many connected vehicles did Romanov have loaning money and writing off debts to each other? Quite a few, it turns out. This is from the 2011 annual accounts.

Posted Image
Posted Image

Neat, huh? (And by "neat" I mean a cash-recycling clusterf*ck the Borgias would consider beyond the pale.)
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Morvant's Finest
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Tommy McLean
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:blink:

So to the uninitiated in said practices, is this just a complicated way of extracting additional interest payments for new loans to a company you control and are lending money to already?
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