Heart of Midlothian Football Club has wiped out £10m of debt after shareholders approved a ‘Debt for Equity’ scheme during an Extraordinary General Meeting at Tynecastle.
The decision sees £10m of the Scottish Premier League club’s debt converted into 100,000,000 shares which have been acquired by the UAB Ukio Banko Investicine Grupe (UBIG) at 10p per Ordinary Share and increases their share in the club to 93.97% as well another 4.45% owned through HoM2005, which the bank controls.
Speaking to the club’s official site, chairman Roman Romanov said: "The directors of Hearts are pleased that the agreement with UBIG removes a further £10 million of the current debt owed to UBIG by converting it into Ordinary Shares.
"As before, in 2008 when the company reached an agreement with UBIG to convert £12 million of debt into equity, this strengthens the company's capital position in keeping with UBIG's strategy for Hearts, whilst removing a considerable amount of the company's short term liabilities."
The club estimates that the move will remove £500,000 of interest per annum.