The Justice endorses the restructuring plan of Levante UD without objections

The Commercial Court No. 1 of Valencia has approved the restructuring plan of Levante UD and has notified the club of the ruling today. The resolution confirms that no creditor has challenged the plan, and the judge has fully endorsed the proposal. 

The plan stabilizes the club's finances and declares its “irrevocability, as well as that of all acts, payments, operations, or guarantees carried out under its protection.” The ruling establishes that the plan cannot be annulled through a bankruptcy clawback action, and no creditor may request the rescission of these actions, thus avoiding harm to third parties. The ruling approving the plan cannot be appealed.

The plan affects and applies to all creditors included within its scope, both those who voted in favor of it and those who did not oppose it. In fact, all have been individually notified, and none have filed objections. Those not included in the plan — such as employees or public administrations — are excluded and will be paid as usual.

The club has already presented a business plan with alternative scenarios considering seasons in both the First and Second divisions of Spanish football. The ruling confirms the payment schedule, which begins with privileged creditors, including EDR and Tifosy, and continues with ordinary creditors and finally subordinated creditors, as explained at the Extraordinary Shareholders' Meeting on October 21. The debt with Danvila is, in this case, extinguished thanks to its capitalization, and the remaining debt is restructured over ten years, giving the club more leeway to address all its projects.

The plan sets a precedent

The club highlights the significance of an achievement they consider unprecedented in the recent history of football, as, according to LALIGA, this could be the first time a plan of this nature has been approved. In fact, the legal services department of the league itself has contacted the club to offer congratulations, express interest in the ruling, and request its review, as it sets a relevant precedent.

The club values the swift timeline in which the ruling was issued — the plan was submitted on October 9 — and now faces the phase of strict compliance with all established commitments.