the Commercial Court approves agreements with creditors

After hearing the leaders and listening to the prosecutor’s favorable opinion on Friday, the Commercial Court of Bordeaux approved on Tuesday the agreements between the club and its creditors King Street and Fortress as part of the conciliation process launched on June 13.

There are three main agreements: capital increase of 10 million euros via Jogo Bonito; waiver of 34.5 million euros of receivables (out of 53 million euros) by the investment funds, including 8 for return to better fortune, transfer of 5 million euros of the remaining debt by perfect delegation to the company JB Dynamie (subsidiary of Jogo Bonito); and sequestration of 14 million euros by Jogo Bonito as a guarantee if the amount was not reached by the capital gain on the sale of players.

With this judgment communicated around 4:30 p.m., the Court notes that “the debtor is not in cessation of payments” to date, “that the terms of the protocol presented are likely to promote the sustainability of the activity of the company” and that “the protocol does not affect the interests of non-signatory creditors”.

On the same subject

Girondins of Bordeaux. One week from CNOSF, a big step forward

After placing 14 million euros in sequestration, the agreement signed on Tuesday between the Girondins and its creditors King Street and Fortress, which seal the abandonment of at least half of their debt, should make it possible to respond to the second failure at the origin of the demotion in N1

In its deliberations, the Court judges “in particular, for the 2022-2023 season, the planned financing measures and the restructuring measures, to which must be added the aid for relegation, the CVC contribution (linked to the commercial company of the League, editor’s note), the commission on a retransfer of a player who came in January 2020 (Aurélien Tchouaméni, editor’s note) and the deferral of rent granted by Bordeaux Métropole, make it possible to maintain a positive positive cash position until the end of June 2023 and restore a positive net position. »

Not decisive, but a plus

Approval puts an end to the conciliation procedure. The latter had been launched following an upstream alert procedure by the statutory auditor on “the significant uncertainties […] to obtain the funding necessary for the continuation of their operation” and because its opening was mandatory to break the agreements made a year ago when the Court was placed under protection via ad hoc mandate and to be able to pass new ones.

The Commercial Court also instructed the conciliators, Maître Franck Michel and Maître Maxime Lebreton, to monitor the proper execution of the agreements. Note that if they were to be used, the 14 million euros of Jogo Bonito placed in sequestration will be reimbursed as a priority by the club.

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