Hearts: Parent company UBIG asks to be declared insolvent
Hearts director Sergejus Fedotovas has confirmed to BBC Scotland that the club's parent company UBIG has asked to be declared insolvent.
And the potential impact on the club may include a points deduction which would lead to relegation.
Should Hearts be judged to have breached Scottish Premier League rules before the season ends, they would be deducted 18 points and finish bottom.
The SPL is taking legal advice on its rules surrounding insolvency matters.
This process will continue on Thursday evening before any formal statement is made.
Lithuanian investment company UBIG has been placed on a list of companies "unable to meet their obligations".
The list is published on the Lithuanian government's Enterprise Bankruptcy Management Department website.
UBIG and their sister company Ukio Bankas, which has collapsed with debts of £380m, own 79% of Hearts' shares.
Hearts owe £10m to UBIG and £15m to Ukio Bankas, who are in the process of challenging a bankruptcy order in Lithuania.
The SPL has been monitoring the situation, with some clubs having raised questions as to whether Hearts were in danger of being affected by an insolvency.
Hearts finish their season against Aberdeen on Saturday.