Club news

PREPARING THE SHAREHOLDERS MEETING

20 Dec 2013
The shareholders meeting of Deportivo will take place this Friday during the first call. Lendoiro is under fire due to the increase of the debt and the acceptance of the financial reports could be in danger. The meeting can also have in impact in the elections.

For the first time in many years the annual shareholders meeting will take place in the first call, which was scheduled for this Friday (Santa María del Mar college, 20h00 CET). Normally the shareholders always wait until the second call, but on this opportunity the first team is playing almost at the same time at the Riazor and it’s impossible for the shareholders to be at both places at the same time, so the club, the president and even the candidates to the elections have been pushing in order to complete the quorum during Friday.

It’s expected an intense meeting for Augusto César Lendoiro, just days before the creditors meeting that should define the administration process and one month before the elections. The centre of the debate will surely be the approval of the financial reports.

The president has been hardly criticized as the reported debt passed from €98.7 million to €170.5 million in just one year as the club was forced to accept the debt reclaimed by the Tax Agency. Lendoiro has defended himself saying that part of the increase represents interests that shouldn’t have been accepted and that remain under dispute.

To make things more complicated on this week the new auditor of the club, Auren Auditores, presented the final report and it criticized the assets value as they interpret that it wasn’t made in the proper way in past years. The club has been criticized for presenting as assets some doubtful issues, like the spot at Primera División (€18.8 million), the rights over the youth players (€8.34 million) or the trophies (€4.79 million). These doubtful valorizations have caused a gap in the patrimony. The club, pressed by the Bankruptcy Administration, is finally admitting it, though only for a value of €39.5 million

Auren, meanwhile, calculates the gap in €117 million, though they approved the financial reports of this year as they were made under the supervision of the Bankruptcy Administration. About the gap of €117 million, the auditor understands that’s an issue that won’t affect the administration process, but that should be fixed by the board of directors that will be elected in January. An extensive debate on the issue is expected during the meeting and it could affect the acceptance of the financial reports.

Another thing on the spotlight is the continuity of the board of directors. The current term of the board of directors ends on December 23, but Lendoiro is trying to extend the period in one month, while candidate Tino Fernández is trying to force the exit of the current advisors before the elections take place. This issue will be discussed during the meeting and it could one of the flashpoints in the meeting.

The shareholders meeting can also become into an interesting first approach to what can happen in next month’s elections, because Tino Fernández, the main rival of Lendoiro, will try to block the acceptance of the financial reports, and if he’s able to gather enough support to do it then he will surely can drag the same votes to win the elections. On Thursday the candidacy of Tino Fernández revealed that they already have around 20,000 shares, which means more than 15% of the total. It’s an important support that can be strong enough to not approve the financial reports on Friday.

ARCHIVE NEWS DEC/13

ZAPPING


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