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ADMINISTRATION: ULTIMATUMS & AGREEMENTS

03 Jul 2013
A final agreement with the creditors, an ultimatum from the administrators, in resume a convulse day in A Coruña. There also tension with the situation at the subsidiaries, though Lendoiro tried to chill out things.

Tuesday was a convulsive day at Deportivo. The tense wait with the situation at the subsidiaries, plus the negotiations with the creditors, were abruptly interrupted by a communicate sent by the administrators in which they urged all the parties to reach an agreement regarding the payment of the debt, because in other case the club would be liquidated in fifteen days. It caused surprise and a press conference of Lendoiro (see the related article).

Before this incident took place, to explain that the meetings between the creditors and La Liga are going to continue on this week, the goal is to reach a final agreement that will be the first step to solve the administration process of Deportivo, though it’s also true that before sealing the deal the judge must establish what the final debt is [for now the creditors presented a list of debts they are reclaiming, but the judge must validate them before been accepted as legal debts]

Since some weeks ago the president of la liga, Javier Tebas, has assumed a protagonic role in the process, helping to unblock the negotiations and taking away from Galicia the trapped negotiations. If the negotiations succeed then the final plan to pay the debt will be ready in the short term, this will allow the club to access the money that remains frozen by the embargos, a key resource to face the short-term obligations, starting with the players’ wages.

The players that haven’t been paid have until Friday in order to present their reclamations to the Players’ Association (AFE), although la liga agreed with AFE that no protests will be presented as they trust in the agreements that could be reached with the creditors, so it’s expected that Deportivo won’t have any problems in this regard.

The “ultimatum” from the administrators (CYREX) just pilled the tension in A. Beyond a threat it as a way to push both sides to reach an agreement; after all there’s no real deadline to reach an agreement and neither they are the ones that can liquidate the club as this is a decision that can only be taken by a judge. Ironically, in the same day of the so-called ‘ultimatum’ the administrators allowed the re-signing of Lux. So, there are most questions than answers regarding the future of the club.

THE SUBSIDIARIES
More dramatic is the situation at the seven related businesses to Deportivo: Playa Club, IRIS [visual merchandising], Deporclínica, VIP seats, Deportienda, Zona FIT Gym and Depor Sport. Many of the employees in the subsidiaries haven’t been paid and no one has explained anything to them. Last month judge Rafael García Pérez ordered to separate these businesses from the control of the board of directors and the employees started to fear the layoffs.

What happened later is that the control over the subsidiaries was given to a third company, Graíño & Freire. They ordered a feasibility study and the results aren’t known yet. The results will lead to assume decisions that could go from closing some of the businesses to sell them out. It has been commented that some of the subsidiaries were already offered to some investors.

The committee of employees already had a meeting with the representatives of Graíño & Freire, but nothing came out of the reunion. Many employees feared the layoffs were going to occur on Monday as the semester ended on Sunday, but nothing happened and the seven subsidiaries were still working as always. And on Tuesday Lendoiro tried to chill out things as he affirmed that the subsidiaries will continue in the business as they already talked of the issue with the administrators. Still, the president left the feeling that some of the workers are going to be fired.

ARCHIVE NEWS JUL/13

ZAPPING

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LENDOIRO: “DEPORTIVO WON’T DISAPPEAR”


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