Depor edge closer to bankruptcy

Augusto Cesar Lendoiro has not lost hope in staving off bankruptcy, but admits that it is still looking the most likely future for Deportivo.

The President saw a majority of his club’s assets frozen by the Hacienda [tax office] earlier this season, as he was handed a four-month window to renegotiate with creditors the club’s reported debts of over €90m.

“We are trying to reach an agreement with the Hacienda and not have to go into bankruptcy, but if in the coming days this does not occur then we will have to go into bankruptcy.

“We cannot wait any longer,” he told reporters today, after meeting with the Spanish Footballers’ Association (AFE) today to explain the situation with regards the playing staff.

“I cannot be very optimistic, but I don’t have to be very negative. We still hope that this is the thinking of everyone and knowing that it is the only way to meet the debt in a way that will not be contested.

“We are not asking for a favour. We want to pay back for everyone, not just some, as others have done.”

This point is in acknowledgement of the Bankruptcy Act that will allow Deportivo to halve their debts almost automatically, something that Zaragoza revealed on Monday that they have benefited from.

“The only thing I ask is that Deportivo are treated equally. That gives us every chance of not entering bankruptcy proceedings and to lead a completely normal life paying all the creditors the entire debt, including the tax office.

“Clearly there are cases in bigger Spanish cities of clubs that are at least equal to that of Deportivo and they are being treated in a way that we have not. Not just the big clubs like Madrid and Barcelona, but other smaller ones.”

Lendoiro confirmed that the club’s entry into bankruptcy will be decided before the year is out and that it will be ‘voluntary and immediate’, rather than when it is ‘necessary’. The club holds its annual shareholders’ meeting on Friday.

“The staff are very calm and after talks with the AFE and the club. If unfortunately we have to go to plan B [bankruptcy], everyone believes that absolutely nothing changes, because there is total feasibility, there is greater revenue than expenses per season.

“The problem is the debt and strangulation of banks and the Hacienda.”

Tags Debt Deportivo Hacienda Lendoiro