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.