Bankia appeal Valencia court ruling

The issue surrounding Valencia, Fundacio VCF and Bankia took another turn, with the bank appealing a court ruling relating to the city council.

Valencia’s local government were ruled last month as unable to act as guarantors to Fundacio VCF’s €86m debt that repayments were recently defaulted on.

However, Bankia have appealed that ruling to the high court, meaning that the current situation of who is answerable to the debt – the government or Bankia – is yet to be fully determined.

The council had originally taken measures, before their role as guarantor was annulled, to steady the ship at Mestalla, agreeing an initial €4.2m interest payment to Bankia as well as initiating a change in leadership at Fundacio VCF.

This change, with Federico Varona coming in as President of the group which holds 72.5 per cent shares in Valencia, has prompted rumours of an unsettled relationship with club President Manuel Llorente.

Llorente is rumoured to be resigning this afternoon.

Tags Bankia Fundacio VCF Llorente Varona