‘Deportivo risk liquidation’

The judge handling bankruptcy proceedings at Deportivo has warned the club to reach an agreement over a sum of money or risk liquidation.

The club have been in conflict with its administrators for the past couple of weeks over where a second payment of the season for television rights from Mediapro of €9m plus VAT should go.

With the funds released in February for allocation, the administrators have held off allowing the club to have the money, in consideration of whether either of the two banks owed money – Novagalicia and Banco Gallego – should have a claim to it instead.

The situation has yet to be settled and today in court the interested parties confirmed that the two-week period given to them by the court judge overseeing the club’s situation has not produced an agreement.

The club and its creditors have now been warned by the judge that failure to find an agreement soon could mean Depor’s liquidation, in light of today’s presentation that they otherwise only have €1.5m in cash to continue trading with.

Tags Administration Debt Deportivo Hacienda Lendoiro Mediapro Tax TV