8 Jul 2008Hearts move to reduce debt burden

Football Finance News | Football Technology and Stadia

Hearts have announced plans to restructure the club's finances through a 'debt for equity' scheme.

An extraordinary general meeting has been called for July 31st, during which shareholders will be offered the chance to either approve or reject the proposal, which would see the club's main creditor, UBIG, buy debt in the form of shares.

One of the chief benefits of the deal would be the saving of around £600,000 in interest payments every year.

It is hoped that this will help the club's efforts to redevelop its stadium, while the board of directors believe the move highlights the continued commitment of UBIG to the Edinburgh side.

"UBIG and its chairman, Vladimir Romanov, have a considerable long-term interest in Hearts as a leading professional football club based at Tynecastle Stadium," Hearts chairman and chief executive officer Roman Romanov commented.

"The directors consider that the terms of the proposed Debt for Equity Conversion are fair and reasonable insofar as the company's shareholders are concerned and will, if effected, promote the success of the company or the benefit of its members as a whole."

Meanwhile, it was also noted that a new manager would be appointed "shortly".

The delay was attributed to the board taking steps to ensure that "the right appointment is made".

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