UBIG, the parent company that owns Hearts, reportedly asked to be declared insolvent and that news could potentially have serious repercussions for the Tynecastle club now that Lithuania’s Department of Enterprise Bankruptcy Management confirmed that it was indeed insolvent.
A statement on the Hearts official website, read: “Heart of Midlothian Football Club can today acknowledge it is aware of a report circulating in Lithuania relating to its parent company UAB Ukio Banko Investicine Grupe (UBIG).
“The club is seeking clarification regarding UBIG’s current situation and as such, it would be inappropriate to comment further at this stage.”
Should Hearts be adjudged to have breached SPL rules before the end of the season, they would be deducted 17 points and therefore finish below Dundee and be relegated.
UBIG and its subsidiary company Ukio Bankas, which collapsed with debts of £380m, owns 79% of Hearts as well as sport, aluminum and real-estate businesses in several countries. With the news that the company is now insolvent, the SPL is currently taking legal advice on its rules regarding insolvency matters.
The Tynecastle side currently owe £10 million to UBIG and £15 million to Ukio Bankas – the latter is challenging a bankruptcy order in the Baltic state.
A number of SPL clubs this week wrote to the SPL asking for clarification of the Tynecastle club’s financial situation, with some believing that they could allegedly be stalling on announcing administration until after the season ends to avoid relegation to Division One.
Hearts’ final game of the season is on Saturday against Aberdeen.