Club news

ADMINISTRATION: THE CREDITORS’ AGREEMENT

06 Feb 2014
The agreement that the creditors voted on January 10 hasn’t been approved by the judge, because he’s still investigating if there was a violation by the club and the Players Association that could lead to its rejection.

Almost one month ago the creditors of Deportivo voted on the plan to pay the debt of club. In a few minutes the 59.44% voted in favour of the club’s plan above the proposition from the Tax Agency [AEAT]. Since that day judge Roberto Niño Estebánez had ten days to accept or deny the deal, as soon as he accepts the plan then the club would be officially out of administration.

What happened next is that the club’s administrators and the AEAT protested as they think there was a violation in the procedure. They suspect that Deportivo, in the attempt to see its plan prevailing, agreed with the Players’ Association (AFE) to “hide” a payment to the players in order to see them voting in their favour.

The players were crucial actors in the creditors’ meting as they were the main voters in the reunion. The AEAT denounced that the club promised them to receive the full amount of the money owed to them with the condition they would vote for the club’s plan. It was after Jose Luis Rubiales, president of the AFE, said in public that the players were going to receive the 100% of their unpaid wages, just when they should have been included in the list of creditors that were going to be affected by the percentage of the forgiven debt.

The AEAT fears the club hided the payment through the AFE and using the money owed by the LFP for the demotion assurance. It’s the reason why the judge has lasted so much in making his final decision, because he has been gathering information about the case.

In past weeks he requested to Real Madrid and FC Barcelona to answer if there was a payment that was made to the AFE. The reason why these two clubs were questioned by the judge is that they are permanent members of the committee in the LFP that controls the TV contracts and the aids to the relegated clubs.

Both clubs admitted two weeks ago that there were two payments made to the AFE and that both were for €2,137,143.16. The next step was to see the judge ordering the AFE to respond what was the destiny of the four million Euros received from the LFP. The AFE hasn’t responded yet.

Their response will determine what Roberto Niño will decide. If he ends accepting the explanations of the AFE and the LFP then the administration case of Deportivo is over, if not then he will reject the result of the first creditors’ meeting and will order a new one, and this time the AFE won’t be eligible to vote. Besides, the only plan to be voted will be the one of the Spanish Treasury. The final call of the judge is expected to occur on next week as long as the AFE responds on the coming days.

In the meantime new president Tino Fernández already told to the media that he’s negotiating with the AEAT and that expects to reach an agreement within the next two weeks. The club and the AEAT need to find an agreement regarding how to pay the privileged debt owed to the institution. Deportivo already have an agreement with the other two major creditors, banks Nova Galicia Banco and Banco Gallego, which are just pending to be signed. If he succeeds, then it would mean a large step towards the normalization of the club.

ARCHIVE NEWS FEB/14

ZAPPING

Related news

Q&A WITH TINO FERNANDEZ


Back to Club news