Hearts avoid SPL relelgation after board meeting

By DANIEL CAW

HEARTS will not face relegation to the First Division despite their parent company declaring last week that it could not pay its creditors.

The Tynecastle club had feared the worst with an 18 point deduction likely had the SPL considered UBIG’s financial status to be an “insolvency event”.

However, the SPL board met today to discuss the matter further and revealed in a statement that they were “not satisfied” that such an event had occurred in relation to UBIG.

The SPL had been consulting with its lawyers over whether UBIG’s situation breaches its rules. Issues under discussion included whether UBIG had officially suffered an insolvency event in the Lithuanian courts.

There is no evidence that has happened.

Hearts could still face action if the situation develops in Lithuania but the points deduction would take effect next season unless new information emerges about what happened last week, which appears highly unlikely.

SPL chairman Ralph Topping said: “We acted on the information that was available to us.

“That’s not to say that other information will not come forward in the next few days or weeks ahead but we can only deal with what we have got at the moment and on that basis there is no insolvency event under our rules.

“We will need to see what develops on this situation, if indeed anything develops.

“You can appreciate the issues that are involved. We are dealing with Lithuania, we are dealing with Lithuanian law, we are dealing with interpretation of what’s happened over there, and looking at it from the perspective of our rules.

“It’s good news at the moment. With everything in Scottish football, there is temporary respite.”

Clubs are docked a third of their previous season’s tally, which in Hearts’ case would be 15 for next term.

The Jambos immediate SPL status remains secure, however, the club still face the possibility of starting next season on minus 15 points should UBIG’s situation deteriorate further.