Lleida CF investor was an alleged fraud

Lleida CF said on May 21 that the investor it had presented this month as the club’s financial rescue was an alleged fraud, reversing what had been billed as a deal to secure its future. The Catalan club said it had filed a complaint with the Mossos d'Esquadra for alleged document forgery and fraud after concluding the supposed businessman had provided false paperwork. Marc Torres, the club’s deputy to the presidency, said Lleida had no immediate fallback option. He added that, without a solution before June 5, the club would enter liquidation in its insolvency case. ### When did Lleida say it had found a rescue investor? Lleida CF announced on May 8 that it had reached an agreement with an investor that would guarantee “continuity, stability and future growth,” according to the club statement reported by VilaWeb. At the time, the club did not identify the investor or disclose the financial terms. It said the agreement would allow it to comply with the viability plan tied to its insolvency proceedings. (vilaweb.cat) May 13 brought the first fuller picture of what the club said the deal needed to achieve. Segre reported that the investor was described as a French businessman of Spanish origin and that the operation still depended on money being deposited and agreements being reached with creditors, Spain’s tax agency and Social Security. (vilaweb.cat) ### What made the club conclude the investor was an alleged fraud? Marc Torres said on May 21 that doubts emerged when the club began processing paperwork linked to the creditor arrangement in court. “When we started moving papers I saw there was something strange, that it did not fit,” Torres said, according to VilaWeb. He said the supposed investor had supplied false documentation. (segre.com) The club then filed a complaint with the Mossos d'Esquadra alleging falsedad documental and estafa — document forgery and fraud. VilaWeb reported that Torres also said the suspect was detained after police found an outstanding arrest warrant. ### How much money does Lleida need to avoid liquidation? Segre reported on May 13 that Lleida’s total debt was about 5.5 million euros, citing Torres. (vilaweb.cat) Of that amount, about 2 million euros was owed to the tax agency, about 3 million euros to Social Security, and roughly 300,000 euros to suppliers and other creditors. The same report said the club needed an initial 800,000 euros payment on debts to the tax agency and Social Security for those bodies to accept a 10-year payment plan. Segre also reported that club president Luis Pereira would forgo recovering 2.5 million euros he had put into the club. (segre.com) ### Why is June 5 the date that matters? June 5 is the deadline Torres identified for finding a party willing to assume the debt before the insolvency process moves into liquidation, according to VilaWeb. He said the club had no alternative on the table after the investor deal collapsed. “There is no future, I can do nothing, there is no alternative,” Torres said during the appearance, while also saying he would keep trying to save the club “until the end.” (segre.com) Segre reported earlier that once the commercial judge admitted the insolvency administrator’s report, Lleida would have 15 working days to negotiate with creditors. The administrator named in that report was Luis Alberto Mir. ### Who are the key participants now? (vilaweb.cat) Marc Torres has become the main public face of the club’s crisis, speaking for Lleida as it tries to keep the insolvency process from ending in liquidation. Luis Alberto Mir, the insolvency administrator, has already filed his report with the judge, according to Segre. (segre.com) The Mossos d'Esquadra are now involved because of the criminal complaint, and the commercial court remains central because the debt restructuring depends on the insolvency timetable. VilaWeb said the club has no immediate replacement investor. June 5 is now the next fixed date in the case. If Lleida CF does not secure a new solution to cover debts of more than 5 million euros before then, Torres said the club will enter liquidation. (segre.com) (vilaweb.cat)