The black and white club has not delivered any economic balance in the Mercantile Registry since it is a Sociedad Anónima Deportiva
Badajoz presented on May 4 in the Mercantile Court number 1 its anticipated agreement and refinancing proposal. The process is in the communication phase of opening negotiations with creditors, a step that, among other aspects, avoids embargoes, and according to Luis Oliver last Friday, he already had 90 percent of the adhesions, for which he was optimistic in moving it forward. But for this pre-contest to be validated, one of the requirements is that the Sports Limited Company have its annual accounts presented. And Badajoz has not deposited any economic balance in the Mercantile Registry since its transformation in 2020. This is required by the Bankruptcy Law in its article 335 referring to Prohibitions in its first section where it states that “the debtor who is found in any of the following cases”, which in the second case of the relationship includes “having failed to comply in any of the last three years with the obligation to deposit the annual accounts”.
This lack has a peculiarity and is that the club is immersed in an audit of previous years that has not yet been closed as a series of unjustified amounts are pending. When the club was still a sports association, it had to undergo an audit to establish the share capital in its conversion process into SAD. The auditor marked what in law is called exceptions to the scope because it was not possible to determine the number of tickets sold for the first seasons of Badajoz 1905, hence the planned capital of 500,000 euros in principle was changed to 1,492,810 euros fixed finally, by establishing itself on the basis of income.
Article 20 of the Royal Decree on Public Limited Sports Companies provides that clubs are required to first submit all annual information to the Higher Sports Council, that is, their accounts, including the management report, memory and audit report, before deposit of said accounts in the Mercantile Registry. The Royal Decree also contemplates in said article in section 5 the way to proceed in those cases in which the club’s accounts have any observation, although in any case it obliges the CSD to be informed promptly and expressly state said circumstance. «When the audit report of the annual accounts contains caveats, quantified or not, and when the opinion of the auditor is adverse or has been denied, sports corporations must request a special report from their auditors, which will be sent to the Higher Council of Sports”.
Badajoz has been a Sports Limited Company since July 29, 2020, which dates from its beginning of activity with Feverstone SA as the maximum shareholder and the BORME officially collected it on December 3 of that same year. The first board of directors was formalized at a shareholders’ meeting on August 31, 2020 with Joaquín Parra as president, Carmen Ruiz as vice-president, Iván Parra as secretary and members Javier Venegas and Luis Baena. Álvaro Trigo also appeared as CEO. Just one year ago, on June 11, 2021, the board of directors met again to hold another general meeting of shareholders to approve a capital increase of 3,104,604 euros to raise it to 4,4,597,450 euros. At said meeting, the economic balance for the 2019-20 financial year and the 2020-21 budget were also approved, which would close on June 30 at 4.2 million euros. But these accounts were not sent to the CSD nor were they presented in the Mercantile Registry. The auditor did issue a report to certify the capital increase. Among other points, the board was also reduced to three members with the dismissal of Javier Venegas and Luis Baena.
After Joaquín Parra was imprisoned and in order to make the club’s activity operational in September 2021, the board of directors was convened again and Iván Parra was appointed as president and Carmen Ruiz as secretary. A few months later, the capital increase would be approved with its publication in the BORME on December 10, 2021. This movement corresponded to an exchange of debt for shares, although it is now being verified that Feverstone had submitted invoices that he passed on to the club and that he had not paid.
And last April, Lanuspe SL entered Badajoz as proxy.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.