Ecija advises on the approval of the modification of the agreement proposed by Real Club Deportivo de la Coruña

Ecija has advised one of the creditors of Deportivo de la Coruña which has made it possible for the Commercial Court nº2 of A Coruña to approve the modification of the agreement proposed by Real Club Deportivo de la Coruña.

The approval of the modification of the agreement has been thanks to the intervention of all the participants in the insolvency proceedings; that is to say, the debtor itself, the creditors, the Insolvency Administration and the Magistrate Judge of Commercial Court No. 2 of A Coruña.

The main purpose of the approval of the modification of the agreement, as stated in the Judgment handed down by Commercial Court no. 2 of A Coruña, is to avoid non-compliance with the agreement in force, to ensure the viability of the company, and to ensure better and faster satisfaction of the creditors.

In addition to the above, the ruling highlights, on the one hand, the commitment of Abanca, Deportivo de la Coruña’s main shareholder, to provide the Club with the necessary funds to comply with all the commitments acquired under the new agreement, and, on the other hand, that the modification of the agreement is more favourable for the creditors than the liquidation of the company and, even, than compliance with the original agreement itself.

All of the above means that Deportivo de la Coruña is out of the insolvency situation, with the consequent cessation of the insolvency administration, who is obliged to render accounts within one month of the finality of the Judgment.

Ecija has advised one of the main creditors since the beginning of the insolvency proceedings, insinuating the credit, and monitoring it until the approval of the modification of the agreement. José Mª Abella, partner of ECIJA’s Litigation and Insolvency department, has led this advice.