3.- VARAPALO IN THE COURTS AND ABANCA CREDITIn March 2017, the Supreme Court ruled against the interests of Deportivo and classified as privileged debt 21.66 million that had previously been considered as ordinary and subordinated debt and, therefore, subject to removal.In this way, the privileged debt with the Treasury was 83.89 million; the ordinary one, at 3.19; the subordinate, at 3.9.After several subscriptions to the Treasury, On June 29, 2017, the club secured a loan of 45 million from the financial institution Abanca to zero the special privilege debt with the Treasury, leaving a privileged debt of 5.99 million, an ordinary of 2.58 and a subordinate of 3.75.4- THE TOTAL DEBT IN THE PRESENTAccording to the documentation provided by the club to members for the March Assembly, to Current date Deportivo’s total debt is around 90 million euros.The 5 million participatory loan signed with Abanca has been incorporated into it to be able to go to the winter market; and three other loans with the financial institution, one with outstanding capital of 7.82 million, another of 7.01, and one of 42.75, which is what it owes from the bank provided to zero the debt of special privilege with the Treasury.At seniors, 15.68 million ordinary bankruptcy debt remains to be paid; 6.04 of subordinate and 6.58 of other debts, as the club transfers to members.5.- DEBT IN MARCHIf the shareholders, as planned, back in March that 35 million euros of debt to Abanca (5 of the participatory loan and 30 of the 42.75 that are owed from the credit to pay to the Treasury) become shares, Deportivo will owe 55.26 million euros, 105 less than those owed less than six years ago. Deportivo’s debt has suffered a significant cut in recent years, from 160 to almost half and now, with the exchange of debt for shares that will be submitted to the approval of the shareholders in March, the club will hit another sharp cut of 30 million to leave it at 55.The decrease in club debit, as reflected by the accounts provided by the entity to the partners, It has been progressive and has experienced several oscillations in the last exercises which can be explained in five keys.1.- THE INITIAL DEBTIn 2013, Deportivo entered into bankruptcy proceedings with Augusto César Lendoiro as president and a debt, as the bankruptcy administrators estimated, of 160 million of euros (with 19.74 million seized and pending reduction to that figure).Lendoiro agreed in January 2014, days before leaving the presidency, one removes with the ordinary and subordinate creditors of 33% on the gross debt, with which the ordinary debt went to 20.79 million; and the subordinate, at 20.03.2.- THE DEBT WITH FINANCEOn March 7, 2014, with Tino Fernández as president, the club and the Tax Agency signed a unique agreement.A reduction of 19.74 million was applied to the privileged debt previously retained by the AEAT and to the ordinary and subordinate, a 33% take away.The privileged debt with the Treasury remained at 42.48 million, the ordinary at 3.80 and the subordinate, at 18.99.In fiscal year 2014/15, by court order of the dispute between the financial entities (which maintained a syndicated loan with the company) and the AEAT, Deportivo had to reclassify 10.75 million that went on to swell the amount to be paid to the Treasury and thus the privileged debt with the Treasury rose to 53.23 million.Later, for another previous litigation, the privileged debt with the Tax Agency rose by 180,000 euros, at 53.41 million, the ordinary rose to 3.98; and the subordinate, at 19,18. read more