Hearts banking on a plan to slash their debt and appoint a new manager

Hearts' majority shareholder Vladimir Romanov will seek to reduce the Tynecastle club's debt by £12million with a debt for equity plan which will go before an extraordinary general meeting on July 31.  

If the proposal is passed, UBIG, the Lithuanian bank of which Romanov is also a majority shareholder, will effectively increase their stake in the club from around 82% to approximately 95 per cent.   

Hearts' debt would be cut to by 30 per cent which, in turn, will reduce current interest repayments by £600,000 per year.  

A statement on the club's website made reference to the proposed new 23,000-seater stadium while explaining the reasons behind the proposal.  

It read: 'The motion to reduce the club's debt by 30 per cent through a 'debt for equity' plan will improve cash flow and provide a long-term base for financing the new stadium, as well as strengthening the balance sheet. It also emphasises UBIG's commitment to Hearts.'   

Romanov has come under fire recently for failing to appoint a new manager, with Mark McGhee, Vladimir Weiss and Jurgen Rober having all turned down the opportunity to move to Gorgie in recent weeks.  

However, the statement claimed progress has been made on that front.  

It continued: 'A new team manager will be appointed shortly and the board of directors are confident that this manager should improve the situation on the pitch.  

'The board are taking all necessary actions so that the right appointment is made.'

The statement concluded with a swipe at the club's detractors, who have criticised Romanov for a lack of communication in recent months.  

It added: 'The board of directors state their desire to communicate through tangible actions, not hollow words.  

'Supporters will be able to judge the board based on actions, which is how it should be.  

'The ultimate owner Vladimir Romanov, the majority shareholding company UBIG, the board of directors and staff are working to take Hearts forward, united as a team.

'Supporters should be reassured that despite the challenges of the last few months, the club are confident of a vibrant and exciting future as a leading Scottish sporting institution.  

'Tremendous progress has been made in the last three years, with yet more assured in the months and years ahead.  

'As each step is completed supporters can be assured that full information will be announced - direct to supporters.  

'The club will continue to implement the right decisions despite criticism from the sceptics.'