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Feb, 4, 2013

Brondby avoid bankruptcy

Former Danish champions Brondby have avoided bankruptcy, announcing on Monday that their immediate financial future had been secured.

The Copenhagen Stock Exchange (CSE) revealed earlier on Monday that all trading in the club's shares had been suspended, raising doubts over their future.

However, later in the day the CSE said the club would be safe until a new share issue could be carried out in the spring.

"We are very pleased to have created the basis for the continuation of Brondby until recapitalisation," Brondby director Tommy Hakansson said in a statement.

"And we're very, very pleased that we have secured the employees their full salary, not only in January but also in the future."

Brondby's failure to pay salaries on the last day of January, along with holiday money owed to current and former players, seemed to signal the beginning of the end for the club, who are bottom of Denmark's Superligaen.

But a frantic weekend of negotiations with investors and creditors - among them the players' union - resulted in Hakansson's statement.

The new share issue is expected to raise between 75 million £8.6 million) and 150 million Danish crowns.

Bankruptcy would have meant immediate suspension from the Superligaen for Brondby. Their results to date would have stood, while the season's remaining games would have been awarded as 3-0 walkovers to the opposition, according to Danish Football Association rules.

Brondby's current situation represents a significant fall from grace for the club, who became Denmark's first full-time professional side in 1978.

The Copenhagen club have won the national title on ten occasions - the last being in the 2004-05 season - and have earned a reputation for producing some of Denmark's finest-ever players, including Peter Schmeichel and Michael Laudrup.

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