Bankia Bank Backs Off After Threatening Legal Action Against Valencia Over '09 Loan
La Liga Valencia President Amadeo Salvo and the team's majority shareholder VCF Foundation President Aurelio Martínez left a meeting with Spanish bank Bankia and the Valencian government "with relative satsifaction," according to Conrado Valle of AS. The meeting "lasted two hours during which Valencia's future, financially speaking, was in play." A "provisional agreement to find a solution" was reached. The agreement "is provisional because the Valencian government decided to wait for a judicial resolution validating the Valencian government as a guarantor" for the €81M ($107M) loan that Bankia provided to the VCF Foundation. Bankia will "agree to the loan being refinanced over 15 years." Salvo said, "A consensus to arrive at a provisional agreement has been reached. Soon there will be a definitive solution and not one euro will come from the public" (AS, 9/9). In Madrid, Cayetano Ros reported the VCF Foundation reached a truce with Bankia, which threatened on Aug. 27 to take legal action if the VCF Foundation failed to pay "the due credit" of €84M ($111M). A Valencia spokesperson said, "Valencia and its Foundation have demonstrated that they are viable" (EL PAIS, 9/9).