Valencia’s city council have paid up the €4.8m of interest owed by Los Che on a €86m debt they are now responsible for.
The club effectively saw majority ownership pass over to the city last month after they defaulted on paying the interest on an €81m loan taken out by Fundacio VCF to buy 72.5 per cent shares in the club in 2009.
Having matured to €86m, responsibility of that debt then moved over to the local authorities, who had agreed back in 2009 to act as guarantor to the loan now under Bankia’s management.
Superdeporte report today that the council have paid the interest payment that Valencia missed and without incurring further interest payment penalties for doing so beyond an originally stipulated agreement.
It is believed that the payment is seen as the first step in the council’s attempts to renegotiate the entire €86m debt owed to Bankia down. Relevant city officials late last week began taking positions at Fundacio VCF.