Romanov to Buy 100 Million Shares in Debt-for-Equity Deal

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HEARTS chairman Roman Romanov has confirmed that the club's owners plan to reduce its debt by GBP10 million through a debt-for- equity swap. Under the scheme, which requires a formal approval by shareholders at an extraordinary general meeting next month, Ukio Bankas Investment Group (Ubig) will buy 100 million new shares in the club at ten pence each.

"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 GBP10m of the current debt owed to Ubig by converting it into Ordinary Shares," said Romanov, son of Vladimir Romanov, who has a controlling interest in Ubig. "As before in 2008, when the company reached an agreement with Ubig to convert GBP12m 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."

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Romanov to Buy 100 Million Shares in Debt-for-Equity Deal

Ubig and a subsidiary company, HoM 2005, already own just over 95 per cent of the shares, making a...

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