Club news

ONE WEEK FOR THE CREDITORS’ MEETING

03 Jan 2014
The creditors’ meeting at Deportivo is scheduled for next Friday; it isn’t expected that Lendoiro is going to have problems to pass the proposition of the club, but the tense relationship with the Tax Agency could bring a new crisis.

On next Friday the creditors’ meeting of Deportivo will take place; it’s a key piece in the administration process as it will determine the future of the club. There are two plans to pay the debt that will be voted; since the creditors with the right to vote are the ones having the not privileged debt it’s clear that the club won’t have any problem to pass its plan to pay the debt.

Because the main creditors with the not privileged debt are the players and la liga, and both LFP and Players’ Association are supporting Lendoiro’s plan. In this sense it’s expected a peaceful creditors meeting, the problem is what might happen outside the meeting.

And it’s that the main creditors of the club will remain to be the ones with the not privileged debt: the Tax Agency (AEAT) with $95,887,367.78 (59.89% of the debt), plus banks Novagalicia Banco ($26,549,676.27) and Banco Gallego ($9,496,666.59).

Lendoiro already said that he has an agreement with the banks, this deal hasn’t been confirmed, though the banks seems open to negotiate, so the problem at this point is with the biggest creditor: the AEAT. Since the day the club went into administration there has been only one meeting with the Treasury, which took place in December and nothing came out of that reunion.

The big difference between the plans is that the one of the club is proposing to pay the debt in seventeen years, while the plan of the Treasury proposes to recover the money in ten. According to the reports in the papers the AEAT is ready to assume an intransigent position, different to the one had with other clubs, because they are concern with the message that could be transmitted to the public in these hard moments for Spain’s economy. After all, Deportivo is the second club in the country with the biggest debt with the Treasury, only behind Atlético Madrid (around €150 million).

The government wants to transmit the message that no more concessions will be granted. It explains the position of the AEAT, because they don’t want to negotiate and just want to see their plan imposing over any other proposition. The problem is that they don’t want to admit that their plan is simply non-viable, both for the club and for the other creditors.  In this way the club is heading into another trap, similar to the one had on July 31.

Many journalists fear that the AEAT could order new embargos the day after the creditors’ meeting. It could happen if the plan of the club is the one approved by the creditors, something that’s very probable. In this sense many Depor’s shareholders have been requesting to reach an agreement with the AEAT before the meeting takes place, but it’s improbable that it could happen as only seven days are remaining.

ARCHIVE NEWS JAN/14

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