SAD Sporting is due to settle its financial situation with lenders BCP and Novo Banco by December 31 of this year, according to information presented to the market this Thursday at the launch of a € 30 million bond issue.
This came after SAD Leonine was unable to consolidate the “reserve accounts” agreed with the two banks on September 30, 2020 and September 30, 2021, totaling € 16.2 million, which were intended for the purchase of the Mandatory Convertible Securities. (VMOC) into ordinary shares (category B) Sporting SAD.
In addition, he was obliged to reimburse on 15 June 2020 a debt and interest in the amount of about 600 thousand euros attributable to the club itself, a reimbursement “which was not carried out”, but which was guaranteed by the issuer. (Sporting SAD) as it is jointly and severally liable is read in the prospectus available through the Portuguese Securities Market Commission (CMVM).
“However, Millennium BCP and Novo Banco, SA have given a waiver [dispensa] by the end of the current year, to pay off the obligations to strengthen the “reserve accounts” of the issuer and the obligations of the UPP. [Sporting Clube de Portugal] debt and interest reimbursement, ”the document says.
In the prospectus, SAD Sportinguista also stated that in parallel, in March 2021, “an agreement was reached” with BCP and Novo Banco to “conduct a competitive process of selling its loans and assigning a position in the Framework Agreement”. which was signed with both banking institutions on November 14, 2014 and added on October 9, 2019, defining new financing and refinancing conditions for Sporting SAD.
According to the lions, this understanding includes VMOC, which guarantees the issuer the preemptive right to sell these loans in accordance with the provisions of the Framework Agreement.
However, if Sporting SAD does not fulfill its obligations to strengthen “reserve accounts” by the end of this year, and if the sale process of these loans, including VMOC, is not completed, and no agreement is reached between the parties Due to the change in the Framework Agreement BCP and Novo Banco “have the right to activate the legal mechanisms provided for in the Framework Agreement, and this will significantly affect the financial position of the issuer and the fulfillment of its financial obligations,” the “green and white” stressed.
Sporting SAD currently has two issues for 55 million and 80 million VMOCs, with a par value of one euro and a total par value of 135 million euro maturing in December 2026, the redemption of which will be made solely through the conversion of the corresponding par value of the new Sporting SAD shares to be released for this purpose.
“The Issuer is jointly and severally liable, together with SCP and Sporting SPGS, for the implementation of financial contracts entered into by these organizations. The value of guaranteed obligations of the mentioned Sporting Group organizations, including debt and VMOC, increased with reference to September 30, 2021 to 147,179 thousand euros. [147 milhões de euros]”, – indicated the lion’s SAD.
