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May 20, 2013

Hearts avoid SPL points deduction

Hearts have been spared relegation from the Scottish Premier League despite their parent company, Lithuanian bank UBIG, having declared itself insolvent.

The SPL board met on Monday to decide whether the financial status of the Jambos' majority shareholder constituted an "insolvency event" under its rules on "group undertakings" relating to clubs.

The Edinburgh side faced the possibility of an 18-point deduction as well as relegation to the Scottish First Division following UBIG's declaration of insolvency last Thursday.

However, the board representing the Scottish top tier decided that there is insufficient information to prove that Hearts should be sanctioned.

The SPL released a statement reading: "The SPL board met today to consider reports from Lithuania in respect of Ūkio Banko Investicinė Grupė ("UBIG").

"The board are not satisfied, on the basis of information currently available to it, that an Insolvency Event (as defined by SPL Rules) occurred in respect of UBIG during season 2012/2013."

Hearts still face the possibility of starting next season on -15 points should UBIG's insolvency later be formally ratified, according to SPL chairman Ralph Topping.

The SPL, though, says it is not "actively seeking" further information on the company's situation but are in discussions with Lithuanian lawyers regarding any future developments.

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