Hearts: Lithuanian court declares parent company UBIG insolvent

Hearts' parent company, UBIG, has been declared insolvent by a Lithuanian court.

And the move should aid the sale of the club, which has been in administration since 19 June .

UBIG's majority share in the club could not be sold until the investment company's insolvency was formalised in Lithuania. Hearts owe UBIG £10m.

There is now a 10-day window during which objections to the ruling by the court can be lodged.

UBIG owns 50% of the Hearts shares, but these had been frozen after the bank it also owned entered an insolvency process with debts of around £380m.

Three parties interested in buying Hearts have submitted formal offers and proof of funding to the club's administrator, BDO.

Supporters' consortium the Foundation of Hearts, HMFC Limited and Five Stars Football Limited all provided proof of funding on Wednesday.

BDO is now in the process of naming a preferred bidder.

Hearts have debts of £25m - owed to companies formerly owned by Vladimir Romanov, who first invested in the club in 2005.

Ukio Bankas, which is also in the hands of administrators, is owed £15m and Tynecastle Stadium is held as security for the liability.

The Lithuanian bank has a 29.9% shareholding in Hearts.