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Spain : Lim agrees deal to restructure VALENCIA debt

June 9, 2014

The two parties previously finalised a confidentiality contract which impedes the sharing of some of the details, but it is assumed that Lim will repay in full Fundacions loan of around 95 million euros and repay 4,8 million to Generalitat Valenciana. The club s debt of 230 million will be refinanced and paid back over a substantial number of years, thought to be 18, with a beneficial interest rate. A part of the guarantee given for the 230 million is provided by Mr. Lim s company Meriton, while 150 million comes from the Mestalla land which could be sold at any moment. If that happens, Lim will increase his guarantee amount to compensate.

The original offer was one of the most elaborate, consisting of over 500 pages, and including a financial plan that would see the repayment of the loan happen in a much faster pace. The agreement now made is said to be extremely complex and it is financially very different from what was in Lim s original offer. What that means is that the FundaciÓn have to do another vote to sanction the final offer, after having unanimously supported the Lim bid in the first vote.

This is a consequence of the decision to move forward with the sale of the shares without including the debt, effectively leaving Bankia out of the decision process. The 16 of May, Bankia already warned FundaciÓn that any winner would have to discuss the debt with them. As such, the FundaciÓn have already made all the required preparations and it is not predicted to cause any issues. Next, the offer will require to be sanctioned by the protectorate for FundaciÓns, normally a mere bureaucratic step.

The club and FundaciÓn quickly released a statement, welcoming the agreement and stating their satisfaction with the result, however reserving the right to further comment after knowing more details. Amadeo Salvo, the Valencia president, later appeared on the club s television to show his content and stated; A brilliant and inspiring future awaits Valencia . Generalitat Valencia added to the general content by stating: GV is very satisfied that an agreement has been made. We have worked to ensure the best for the club throughout the process .

It is unclear whether this now means the club is immediately unlocked from the restraints related to transfers, or if there will still be a long wait before rumours can be turned into action. While the final sanction of FundaciÓn is thought to happen in the third week of this month, several newspapers claim that Lim want to present his first transfer already next week. Lim s strong ties to superagent Jorge Mendes is thought to give the club access to targets normally far out of reach, such as Jackson Martinez, who Lim and Mendes discussed in a meeting with Porto president Pinto da Costa earlier this week. No doubt it will be an interesting summer at Mestalla.

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Source: TendersInfo (India)

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