Hearts solvency in question over HM Revenue and Customs action

Hearts precarious financial situation has again been highlighted after the club confirmed HM Revenue and Customs had begun a process that could force them into administration.

A petition for a 'wind-up' action was lodged against the Edinburgh outfit at the Court of Session this week on behalf of HMRC, who are chasing unpaid debts.

Club director Sergejus Fedotovas said: "Hearts has been informed of the petition that has been raised and that came as a surprise as the club has a payment schedule in place with HMRC and this will be met in full and to the agreed timescales.

"The funds are available and sufficient to meet the obligations. We have made excellent progress recently as a club in cutting our costs and reducing our debt while delivering a winning team on the field.

"This will continue to be the case and, with continued effective investment, we are confident in our future direction."

Should the Jambos fail to pay up, the action could see them forced to sell assets or even cease trading altogether.

Were they to go into administration, the club would face a 10-point deduction from the Scottish Premier League.

Last season, Hearts twice failed to pay their squad on time, citing "technical" problems for the delays.