NEWS
Monday January 14 2013
Depor enter bankruptcy - report

Deportivo have reportedly been accepted by a court judge for their application to enter bankruptcy proceedings.

With debts believed to be totalling €90m, the Galician outfit last week filed for bankruptcy.

News agency EFE are running the line that their application has been accepted and that President Augusto Cesar Lendoiro will remain in his position, but will now have to run decisions past a team of administrators.

The administrators are expected to run through the club’s accounts and within two months issue a report to explain why they believe the club has found itself in this situation.

The primary role of the administration team will be to reach an agreement with creditors who are owed money by Deportivo and settle on a repayment plan.

In the event of a failure to reach an agreement, or if the view is that Depor are unable to fulfil repayments, then administrators will advise the court to liquidate the company.

In entering administration, Depor are also expected to find that the Hacienda’s embargo from November that was placed on a majority of its assets and revenues will be lifted.

The club are believed to have been unable to fulfil full payments in a number of areas in recent months, including player wages.

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