Chairing the meeting, Hearts director Sergejuis Fedotovas said they are pursuing other areas to further cut the debt.
"The debt for equity plan provides further evidence of UBIG's aim to continue to develop Hearts on and off the field and, together with continued cost efficiencies, help the club reach profitability," said a club statement.
"The conversion allows Hearts to benefit from a much stronger capital position and provides opportunities to raise external funding for the redevelopment of Tynecastle Stadium."
Hearts' next financial figures will also be boosted by the £9m paid by Sunderland for goalkeeper Craig Gordon and £2.5m from West Brom for striker Roman Bednar.
In addition, the Edinburgh club have been actively reducing the size of their wage bill in the past year.
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