DIP loan stalled: Rio court imposes audit condition on Vasco | OneFootball

The Rio de Janeiro Court ruled that Vasco will not be allowed to take on new debt, including obtaining the new DIP (Debtor-in-Possession) financing, before the start of the audit by ICTS — a consulting firm specialized in risk management, governance, and forensic expertise appointed to analyze the accounts — and the delivery of its summary report. The decision was handed down this Tuesday (18) by Judge Simone Chevrand and detailed by journalist Gustavo Cunha from the Colina 1927 profile. Interestingly, the judicial brake comes at the same time that Flamengo called on the ANRESF to try to block new financing and investments by its rival.

The judge set a 15-day deadline for the presentation of the initial document after the effective start of the investigation. The measure makes authorization for any new emergency financial injection conditional on a full review of the accounts and transactions in the Judicial Recovery process.

In the ruling, the judge accepted the motion for clarification filed by the club and determined that the audit costs must be paid in full by 777 Carioca LLC, the plaintiff in the case. For the auditing firm to begin its checks, an advance payment of 60% of the total amount of its fees is required.

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Vasco’s advance payment option and confidentiality ordered

Given the urgent need to obtain the DIP financing to maintain cash flow, the court allowed Vasco SAF to make the advance deposit of those 60% of the fees if it wants to speed up the start of the work and the counting of the 15 days.

The court decision also ordered absolute confidentiality over documents related to institutional governance, limiting access strictly to the agencies, experts, and parties involved in the case. The discussion over the final amount of the fees will proceed in a separate incident without holding up the expert review.

Impact behind the scenes and football planning

The temporary block on the financing puts a temporary brake on the immediate financial projections of São Januário. Vasco’s football department and board are following the legal proceedings in an attempt to speed up the release of the authorized funds.

The club is assessing whether it will make the initial payment for the expert review to speed up the audit opinion and regularize the fundraising request. The management’s intention is to meet all the judge’s technical requirements in order to unlock the season’s operating budget.

Pedrinho faces a new impasse in Vasco football – Photo: Reproduction

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This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.