Vasco da Gama loan request suspended by Brazilian court

A judge in Rio de Janeiro has suspended Vasco da Gama’s request for a R$ 150 million Debtor-in-Possession (DIP) loan, a move that threatens the club’s ability to sign new players during the current transfer window.

Judge Simone Gastesi Chevrand ruled that the club cannot take on new debt until an audit is conducted by ICTS and a summary report is presented. This process is expected to take at least 15 days, though it could extend to 30. To expedite the process, the court allowed Vasco to deposit 60% of the proposed audit fees upfront. The judge also clarified that the audit costs should be covered by 777 Carioca LLC.

The financial delay is critical as Vasco reported an urgent cash shortage, noting that available resources could be exhausted as early as this week. The club had planned to use the DIP funds to cover immediate expenses, including salaries, taxes, and transfer fees for new signings. The suspension forces the club to reconsider its market strategy, potentially shifting focus from international targets to free agents or loan deals.