Sunday, August 10, 2014

Update on the sale

The big day draws near. This Friday is the deadline for the exclusivity agreement between Bankia and Lim. The sale will be decided by the end of this week. Last time, I wrote about this, Salvo criticized Bankia for delaying the process, being unprofessional and changing the terms of the demands. He has clarified what those changed terms were in a recent press conference.

Valencia CF have to make a first payment to Bankia some time near the end of August. Of course, when Lim takes over, it will be him making the payment since Valencia CF cannot. This first payment of 215 million euros will reduce the debt to 71 million euros to be paid later. That was the agreement that the two sides reached on June 6. Now Bankia wants to change the terms of the collateral (guarantee that the payment will be made). Previously, pledged shares and his signature as a collateral. Now Bankia wants a list of unrestricted assets worth 4 times the debt of Valencia CF as collateral. Salvo is amazed at how Bankia can make such a demand for a man with high international reputation. He also wants an explanation as to why the previous agreement made on June 6, is not valid anymore. He even suggests that Bankia's plan has made a deal with a group of businessmen who also want to buy the club. He says that Bankia is trying to make a fool out of him, and challenged Bankia's president to come out and say that things are not the way that Salvo has described them.

This week will feature tense negotiations as well as the appearance of a figure that has been at a distance so far in this negotiation. None other than Peter Lim himself, will be in Spain this week to finalize negotiations. The club is hoping Lim's appearance will speed things up and pressure Bankia into settling the issue. Lim will also be holding a press conference at the end of this week about the sales process. Let's hope everything goes well. 

Any thoughts?