Wednesday, November 28, 2012

Mario Alvarado deal turning out too good to be true

So it seems someone leaked the supposed deal Mario Alvarado was doing with Bankia and his proposal was to buy 220 million euros of the debt owned by Bankia, but was itself based on a loan deal done with HSBC bank.

This just confirms many people's suspicions that he doesn't have any capital and this whole operation is based on more debt and more fake promises. He proposed a 3 phase deal and the first one was the purchase of the debt of up to 220 million and then have additional investments.

Problem with this is that there is no capital, there is no real money, its all based on further debt which Valencia CF has too much of. In fact the problems right now are too much debt and the inability to liquidate debt and start fresh, which is the only way to get growth again, it doesn't take a rocket scientists to get to understand that.

So I'd say this deal is likely to be rejected and is not going to go through. We even had reports that Llorente is in Dubai and other Asian countries searching for investors.

We'll see what happens, but I'm calling this early based on these new information that the deal will not go through, because there is no deal as there is no capital and/or money, its just more debt that if surprisingly done would just move the ball to another court.