Club news

ADMINISTRATION: THE RESPONSE OF LENDOIRO

27 Feb 2013
The club presented allegations to the judge about the previous report of the administration ruling Deportivo; Lendoiro assures that the debt with the treasury is only 58 million Euros and not 93. They also are opposed to other three measures.

Deportivo aren’t happy at all with the first report presented by AD CRYEX S.L.P, the company that’s managing the administration process of the club. In this sense the club presented a statement of allegations to the judge, mainly they are opposing to four aspects.

The first is the indebtedness with the Spanish Treasury; CRYEX presented the certification of the Treasury in which this institution calculated the debt in €93 million, 63% higher of what was previously reported by Lendoiro during the shareholders meeting (€40 million).

The certification of the Treasury was presumed to be right by the administrators, but now the club argues that the entity is not resting €36 million of payments that were already made, starting with the €14 million that were part of the embargo made at the end of the past year, they are neither deducting the VAT payment made in January nor the amount of previous trials won by Deportivo, in this sense the lawyers of the club estimate that the indebtedness with the Spanish Treasury is €58 million.

A second thing protested by the club is the suggestion to name a manager in order to make the monetary decisions of the club; neither to take off the wages of the president and the board of directors. The lawyers of the club argue that they can only be separated from the club after establishing their responsibility in the bankruptcy of Deportivo, something that hasn’t happened yet.

Besides, they argue that a new manager will end earning almost the same salary of the president and the board of directors, so the operation will end to be a transfer of the money from one person to another without making any saving. The lawyers of the club even pointed that CRYEX are earning €387,000 while the board of directors earn €160,000.

Another suggestion of CRYEX was to change the auditors of the club; so far the company Olszewski was the one auditing the club, but the administrators want to change them for AH Auditores SL. Lendoiro doesn’t want the replacement as this last company earns €35,000, while Olszewski only charges €29,000.

The fourth point protested by the club is the allegation of CRYEX about including the other seven companies of Deportivo in the administration process. Currently the club has other seven businesses: Playa Club, IRIS, Deporclínica, VIP seats, Deportienda, Zona FIT Gym and Depor Sport. What the club argues is that it isn’t necessary as six of these business presented positive results last year, the exception was IRIS (multimedia) which lost €2,000.

Finally, Zulema Gento is no longer the judge in charge of the process; she requested a transfer to Lugo before been named to Deportivo, and his petition was fulfilled last week. For the moment the judge managing the case of Deportivo will be Rafael García Pérez. He will be in charge for two or three months as his designation is temporary.

THE FIRST EMBARGO WASN’T LIFTED
Last week it was commented the request of the administration to the judge regarding the €14 million coming from Mediapro (Mediaproducción SA) that were sequestered by the Treasury during 2012, yesterday the judge determined that this money cannot return to Deportivo. The administration argued that the club was needing the money in order to continue paying the debt and that the €14 million should be reimbursed, however the judge rejected the petition, because the money was sequestered before the club went into administration.

ARCHIVE NEWS FEB/13

ZAPPING


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