Hearts’ main creditor Ukio Bankas Investment Group, of which Vladimir Romanov is chairman, is to buy 30% of the Hearts debt in the form of shares. The scheme, known as the œdebt for equity plan, was revealed in a statement on the club’s official website today.
Roman Romanov, son of Vladimir and current Hearts chairman, talked of how the plan demonstrated the investment group and Vladimir Romanov’s long-term commitment to the club. œUBIG and its Chairman, Vladimir Romanov, have a considerable long-term interest in Hearts as a leading professional football club based at Tynecastle Stadium. He added œThe Directors believe the current proposal to convert £12 million of debt into equity demonstrates the strength of UBIG’s continued financial commitment to Hearts.
As well as demonstrating long-term commitment, the statement included details of how the plan would put Hearts in more stable financial position by relieving the club of around £600,000 of interest payment per annum. It will also put Hearts in a stronger position to pursue external funding for the redevelopment of Tynecastle Stadium.
In a separate, but related, statement from the board of directors on the website today, the club announced that a new manager will be œappointed shortly.
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