La Liga: Deportivo La Coruna threatened with liquidation

"If you are interested for this to go any further, negotiate amongst yourselves otherwise all activity will be ceased, followed by liquidation" judge Rafael Garcia Perez told representatives of the Spanish club and its creditors on the 22/04/2013.

The dispute involves two Spanish banks, Banco Gallego and Novagalicia who claim that Deportivo owe them money earned from broadcasting rights. €10.6m of the total sum of €12.7m was confiscated by the Spanish tax authorities in autumn 2012.

Deportivo La Coruna registered a €98.7m debt on the 30/06/2012, 70% of which is owed to the Spanish state. The club declared insolvency on 11/01/2013. Judge Rafael Garcia Perez is responsible for the club's recovery process.

The club claims that they only have €1.5m left in the bank, which would not be enough to allow them to complete the 2012/13 season. 

Representatives of both banks argue that they have a right to Deportivo's earnings and that the banks are not to blame for the club's current economic troubles.

Judge Rafael Garcia Perez has asked that all parties reach an agreement because if there…