Club news

ADMINISTRATION: MONTH FOR DEFINITIONS

31 Oct 2013
November 30 is the last day to present plans in order to pay the debt, forty days later there will be a meeting in which all the parties involved will vote for their preferred plan. The board of administrators is currently negotiating.

November is an important month for Deportivo’s future. At the beginning of October judge Rafael García fixed January 10, 2014 as the day in which the club and its creditors will define the plan to pay the debts. Forty days before, November 30, is the deadline to present propositions to the judge. Those plans cannot be modified after been presented to the judge, just voted the day of the meeting.

So, it’s possible to say that the future of Deportivo will be negotiated throughout the month of November. Currently, only The Tax Agency (AEAT) has presented a plan, though the judge himself ruled out its viability as it was proposing the forgiveness of the 50% of the privileged debt plus to pay the full amount in eight years, which is considered a suicide.

There’s a second plan, which has been negotiated between the board of directors and banks Novagalicia and Banco Sabadell Gallego. According to newspaper a Opinión A Coruña the characteristics of the plan are: to forgive the 33% of the privileged debt, to fix a deadline of 15 years in order to pay the debt, with a shortage of two years, which means that the debt would be paid in 17 years, besides the plan stipulates the obligation to use the 20% of the yearly incomes to pay the debt.

The plan of the board of directors was already accepted by the LFP and the Players’ Association (AFE). Both are important pieces in the puzzle as they are the biggest creditors after the banks and the AEAT. The club owes $2,999,832.48 to la liga and $11,281,977.34 (7.05% of the global debt) to the players.

Besides, there’s a verbal agreement with the banks, which is crucial as their votes are important in order to get the final approval. The club owes $26,549,676.27 to Novagalicia Banco and $9,496,666.59 to Banco Sabadell Gallego.

So, at this point the main obstacle to this plan is the AEAT. The Spanish Treasury hasn’t participated of the meetings with the club, and it can be interpreted that they want to transmit an image of hardness as they want to collect the money in less than 10 years, a very complicate deadline and shorter to the one conceded to other clubs, but at the same time consistent with the current policy of austerity implemented by the government.

ARCHIVE NEWS OCT/13

ZAPPING


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