Valencia’s state of ownership is again thrown into doubt as a court reportedly rules against the local government acting as a guarantor.
The Valencian city council agreed in 2009 to back Fundacio VCF’s bid to a 72.5 per cent share in Los Che by acting as guarantor for an €81m loan taken out to fund the operation.
The club’s subsequent financial issues saw them fail to meet interest payments on that loan in January, and the shares in effect transfer over to the city.
Since seen as responsible for this particular debt, which now stands at €86m, the council came up with an initial €4.8m in February to cover the cost of the interest due to Bankia.
However, a ruling in court in Valencia today has seen a judge annul the council’s original endorsement to act as guarantor for the 2009 purchase.
The judge is quoted as saying that the granting of the guarantee should not have been given, with the council not in a position to ever fund the amount it could have become liable for.
This means that the club’s shares, although still currently in Fundacio VCF’s name, will be handed from the council to Bankia.
The ruling, which can still be appealed, is in relation to a lawsuit filed in 2010 by shareholders who were not given the option of increasing their share in the club before Fundacio VCF’s takeover was approved.