Bankia have reportedly determined that if the city council are ruled unable to take responsibility for Valencia’s debt, they will look to sell the club.
The Spanish bank are currently discussing with Valencia, the club’s majority shareholders Fundacio VCF and the city council over two debts owed to them, one of €219m owed by Los Che and another of now €85m owed by Fundacio VCF.
Fundacio VCF’s failure to meet full payment on an interest amount due at the end of last month on their particular debt has thrown the club’s ownership back into uncertainty.
The group’s 2009 purchase of 72.5 per cent shares at Mestalla was funded with a loan taken out in 2009 with Bancaja, who in Spain’s financial crisis, have now fallen under Bankia’s management.
The city council are involved as they agreed in 2009 to act as guarantors to Fundacio VCF’s loan. A local court recently ruled that they are unable to act in such a capacity, but Bankia are currently appealing this decision.
With Fundacio VCF failing to meet their latest repayment, they, the club, the bank and the city council have subsequently been meeting to try and settle on a strategy to move forwards with.
Valencia President Amadeo Salvo indicated earlier this week that talks towards reaching a solution were progressing, but it is believed that Bankia’s course of action will depend on the outcome of their appeal against the court ruling barring the city council from acting as guarantor.
If the appeal is successful, then it is understood that a debt-refinancing package will be agreed between all parties to proceed forward with.
However, if the appeal is upheld, the city council cannot act as guarantor and shares in effect pass from Fundacio VCF to Bankia, Superdeporte understand that the bank intend to recover their money through selling those shares.
