The task force that must save Donar from financial ruin is hopeful that the Groningen basketball club can escape bankruptcy. An agreement with creditors and agreements with investors are being made.
According to former banker Jakob Klompien, who was brought in as a troubleshooter, Donar hopes to hit the nail on the head on Wednesday. Then it’s D-Day. We hope, pray and expect to make firm agreements with twenty-five potential investors. Then the candlelight goes out, the neon lights come on and the contracts are on the table.”
Debt of two million euros
The investors will have to cough up five to six tons. “Once we have that money, we will work towards a creditors’ agreement. In it we indicate what we can pay the creditors.” Klompien thinks of twenty percent of the amount owed. Donar has a debt of approximately two million euros. An important creditor is the Tax and Customs Administration, which still owes the club six hundred thousand euros.
Donar hopes that the tax authorities will indicate within two weeks whether they are satisfied with part of the claim. Klompien: ,,I can’t make any estimate of that. We hope for a decision within two weeks. can we continue? We have to pay the salaries again on July 25th. That is also stressful.”
Bad message to creditors
Recently, Klompien and Donar chairman Jannes Stokroos have had personal conversations with all creditors. “That twenty percent was of course a bad message. But if the club goes bankrupt, they get nothing”, says Klompien. According to him, it looks like most will agree to the offer. He emphasizes that the club hardly has any assets.
Magic border
Meanwhile, supporters are committed to the club. Donar exceeds ‘the magic limit’ of 50,000 euros in small contributions from fans. Half a ton can be added to that from supporters, who each put at least 250 euros on the table in exchange for a share. ,,An amazing result”, says Klompien, whose telephone and mailbox exploded in recent days.
According to Klompien, many people have questions about those shares. ,,Would I lose that money if the club unexpectedly goes bankrupt? What about control? Can I sell that share and what are the conditions?” Another important issue is how the fans relate to the big investors? “No decisions will be made without the fans. They will have a foundation with a participants’ council that will have a veto on numerous matters to be determined. We continue to radiate that Donar is a ‘fan base’ club.”
‘It will end once’
According to Klompien, a strong financial impulse from investors also includes business rules to protect that capital. ,,That is sensible, because you do not want us to get into financial problems again in five years. All kinds of parties and fans come to our aid, but it stops one day. The game is also over once.”
Settlement with treasurer
Last week, the board and Klompien had a long and intense conversation with treasurer Ronald Arkema. The board holds him largely responsible for the financial chaos. It looks like Donar and the treasurer are reaching a settlement. The settlement means that Arkema will pay an agreed amount into the club fund.
Earlier, to get an amount of 235,000 euros, the treasurer’s house was seized. Klompien: ,,He is very aware of the precarious situation of the club.” He does have a tip for Arkema, who goes through life as a financial expert. “I would advise him to choose another profession.”
‘Big steps taken’
Chairman Stokroos says that major steps have been taken in the rescue operation. “We are getting closer to the finish every day. The investors will soon form the board of directors. Then they have the say. We’ll see how it works out for me. I want to be able to say: you were there when things went wrong, but you helped the club to move on.”
Klompien thinks it is too easy to talk about the resignation of the board now. “When I see how that has developed in recent weeks, I have no doubts about the integrity. I am convinced that the board did not know what was going on. That’s different from the question of whether they should have known.”
Stimac is confident
To participate in the competition, a license is required from the basketball association. Only clubs that have a balanced budget are allowed to play. The union also demands an adequate recovery plan. An independent company has been asked to review the budget, which amounts to 1.65 million euros.
The board is positive about the attitude of coach Andre Stimac, who, if the rescue operation succeeds, will have to go to work with this budget and his team. Stokroos: ,,We have discussed the situation extensively with him. He is fully aware of the situation and has full confidence in a good outcome. The man is not giving up. Stimac says: ‘Tough times go, tough people stay’. That is a statement that shows character and that you can do something with.”