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Hearts aim to reduce debt by £10m

eNewsletter
align=justify>Scottish Premier League club Hearts has released plans to raise £10m to reduce the club’s debts through handing more shares to their banker UBIG.

If shareholders back the Debt to Equity plan, Ukio Banko Investicine Grupe (UBIG) will be issued 100,000,000 shares at 10 pence per share.  The bank currently owns 95.07% of the club’s shares through UBIG and HoM2005, which the bank has control over.

A statement on the club’s site said the plans would remove ‘£500,000 of interest per annum’ as well as accelerate ‘the point at which Hearts may return to profitability.

Commenting on the plans, club chairman Roman Romanov said: "The directors of Hearts are pleased to inform shareholders that an agreement has now been reached with UBIG, conditional upon passing of the resolutions, to remove 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 will strengthen 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 SPL side are currently £35m in debt.

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