A Faro Football Club creditors' meeting ended with the decision to give the club 60 days within which to present an insolvency plan to pay off the €5 million it owes creditors."The Club will have to present a payment plan that satisfies creditors," the insolvency administrator told reporters at the end of the meeting in Olhão today.
The Olhão Commercial Court declared, on February 21st this year, that the club was insolvent, a decision taken following a lawsuit filed in 2011 by a former employee who claimed salary arrears.
The next step was the holding of a meeting of creditors, with 14 of them represented.
Twelve voted in favour of the insolvency plan and two abstained. This avoided Option B - the immediate liquidation of the club.
A phased payment plan, can be for between five and 15 years.
"If the plan is approved, the club is obliged to comply," added the insolvency administrator, who will be in charge of overseeing the fiscal actions of the current directors of the club.
Speaking to reporters, the football club president, António Correia, was regretful that two creditors abstained, "We were sad that Carlos Costa, a former player, and the Clube Naval de Faro, an institution in the city, have abstained."
The lawsuit is pending an appeal filed by the football club against the insolvency decision which, if granted, will end the insolvency proceedings.