Intercity approved two measures aimed at restoring the heritage balance of SAD, of which it is the chair. Salvador Martí enabled the recovery of accumulated losses from prior seasons and simultaneously reduced the risk of a further legal termination.
To implement this, the board decided to apply all provisions related to the latest share premium. The extra price paid for shares, beyond their nominal value, partly offsets the item labeled “results from previous years,” allowing part of the debt to be carried forward. The adjustment reduces the debt by 3.7 million euros.
The premium is borne by group members and arises from the commitments each member makes when subscribing to a share or participation. It equals the difference between the issue price and the nominal value of the deed. In Intercity, the share premium stands at about 4.5 million euros.
Additionally, the board resolved a capital reduction for SAD, lowering the capital from 2.4 million to just over 1.2 million. This reduction is achieved through the depreciation of the share value in existing ownership, with the distribution of voting shares ranging from 0.20 euros to 0.10 euros each.
The purpose of the capital reduction is to partially compensate for SAD’s losses and to restore the balance between the company’s capital and its net worth, which had declined due to the accumulated losses.
Voluntary reserves
Following the capital decrease, Intercity reports a loss approaching 6 million euros. Of this amount, 2.8 million relates to the most recent financial year, 2.5 million to previous years, and nearly 675,000 euros to a line item labeled voluntary reserves.
Both measures have the board’s backing and have been brought to the attention of creditors. The company notes it cannot object to the execution under Article 335 of the Capital Companies Law.
The effort to restore balance in assets has led Intercity, the only Spanish club listed on the stock exchange, to a potential bankruptcy intervention claim. Technical bankruptcy has been removed from the financial equation. The major shareholders gain time to locate new revenue streams, while the depreciation of shares reduces the negative pressure on the balance sheet.