Hearts FC exits administration into CVA
12-Jun-2014After a long year, Hearts FC is out of administration and can now make signings as administrators, BDO, lodged exit papers yesterday (11th June) with the Court of Session in Edinburgh.
With debts of £30 million, the club entered administration last June and has since been in a long process of talks and plans with the club’s Lithuanian shareholders (who have also been in insolvency proceedings) as well as the club’s very own fans.
Hearts fans decided to take matters into their hands and put together a viable business plan to combat the debt. This led to businesswoman Anne Burge taking over the club together with the Foundation of Hearts see it through administration.
Anne Burge released a statement on the Hearts official website: “Everyone associated with the club is ecstatic and now we can really begin to move ahead in implementing our plans for the future. With the greatest respect to Bryan, Trevor, Bob and Duncan from BDO, we are all delighted to see them go! On a serious note, however, we owe them a huge thank-you for putting in the hours to get us out of administration this week, as promised.”
Burge came up with the funds for the CVA (company voluntary arrangement), a debt which Foundation of Hearts will need to continue to pay off for a number of years - the club isn’t out of the woods just yet. However, the repayment plan is working well and membership hasn’t fallen - the club’s future is looking bright! It also paves the way for Burge to hand over the club to the Foundation within five years.
Gary Locke has been replaced with Craig Levein as director while Robbie Neilson has taken on the Head Coach role. Now the club is out of administration, the main focus is getting season tickets on sale. Fantastic news for fans!