Skip to main content
EN

Levante UD Foundation Approves Viability Plan by José Danvila

Comunicación

The Levante UD Foundation's Extraordinary Board of Trustees meeting, held today, approved, by a large majority (14 votes in favor and 2 against), the economic viability plan proposed by Levante UD shareholder and investor José Danvila at the beginning of the season. Over the past few months, a negotiating committee has been finalizing specific points of the viability plan that provide a lifeline to the club. Without these measures, the club would currently face frozen accounts and administrative relegation. This agreement allows the club to meet its expenses, settle pending payments, and strive for a greater push on the playing field.

Key Points of the Agreement:

  1. Capital Injection:

    • José Danvila has made a participatory loan of €10 million, formalized before a notary on October 18. Out of this amount, €6 million will be capitalized, meaning that instead of being repaid in cash, it will be used to acquire shares of the club. As a result, José Danvila will hold 37.7% of Levante UD's share capital.
    • The club has a period of 5 years, extendable for another 5, to repay a total of €4 million to José Danvila at an interest rate of 7.5%.
  2. Share Purchase and Rights:

    • José Danvila's acquisition of shares includes a preferential acquisition right for the Levante UD Foundation. If Danvila decides to sell his shares, the Foundation has the right of first refusal to purchase them.
    • Any new shareholder must assume all the financing provided by José Danvila (participatory loan, acquisition of Toro Finance debt, and purchase of federative rights) to protect the club.
  3. Open Capital Increase:

    • The capital increase, which will capitalize the €6 million from José Danvila, is open to all shareholders at the same price as the shares acquired by Danvila. However, Danvila and the Foundation are excluded from participating in this capital increase.
    • The expansion is expected to be completed before June 30, 2024, with the possibility of two rounds if needed.
  4. Advance Payment for Federative Rights:

    • José Danvila advances €5.8 million to Levante UD, acquiring the credits associated with the federative rights of 5 players. This provides the club with immediate liquidity to address tax obligations, staff salaries, and other treasury needs.
  5. Debt with Toro Finance:

    • José Danvila acquires the debt of Toro Finance, which belonged to Bravo Capital (formerly Gedesco). This debt was a pressing issue for the club, and Danvila's acquisition allows for an extended repayment period, with a 7.5% interest rate. The new repayment date is set for January 31, 2025.

Timeline:

After today's meeting of the Foundation's Board of Trustees and the approval of the agreement between the Foundation and José Danvila, the next steps include the signing of the corresponding agreement between the parties. Following the renewal of the Board of Directors in the General Shareholders' Meeting on March 26, a new Extraordinary General Meeting will be convened in late April to approve the capital increase, with the aim of completing the process by the end of June this year.