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DEPOR ARE OUT OF ADMINISTRATION

08 Feb 2014
Judge Roberto Niño has approved the creditors’ agreement that was sealed back in January. It means that the club is officially out of administration. The club still has to sign the agreements with the banks and the Spanish treasury.

In a previous report it was explained the state of the administration process of Deportivo. Judge Roberto Niño was pending to receive the response of the Players’ Association (AFE) regarding what happened with a payment made to the players.

The response was sent on Friday and the AFE admitted a payment made to 21 players and former players of Deportivo. The amount was €1.3 million. At the same time the association clarified that it wasn’t an illegal payment as they, as part of the agreement with the players, are covering the losses of their member after the club was declared in bankruptcy.

Roberto Niño accepted the response and rejected the petition of the Tax Agency (AEAT) regarding to not accept the creditors’ agreement signed back on January 10 after been accepted by 59.44% of the creditors with the right to vote.  Immediately he ratified the agreement and informed all the parties involved.

It means the club already has an agenda of how will face the debt with the creditors, also that the club is officially out of administration after just 13 months. Now, the new board of directors regains total control of the daily life at Deportivo. The global debt of Depor is now €140 million after the cut made with the forgiveness of the 33% of the not privileged debt.

The two administrators, Julio Fernández Maestre and Francisco Prada Gayoso are no longer involved in the financial decisions, though they are open to intervene in punctual cases if the creditors request it, and from this moment have 30 days to present a report to the judge of what their duties at the club. The judge will remain involved with Deportivo, but only to make decisions regarding some special cases that are open.

Now, the key is close the negotiations with the AEAT and the banks. Despite the club sealed an agreement in the meeting, the deal is with the creditors owing not privileged debt. The rest, which are the majority of the debt (€125 million), aren’t included. New president Tino Fernández is negotiating with the AEAT and it has been reported that an agreement is close to happen, while the deal with the banks is only pending of the sign after the negotiations made by former president Augusto César Lendoiro.

RELATED: THE CREDITOR’S MEETING

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