Madrid: The new owner of Racing Santander, Indian tycoon Ahsan Ali Syed, has begun to pay off the 13 million euros (17.7 million dollars) in debts the club holds with the Spanish Treasury, the regional government said on Tuesday.
Syed "has faced up to Racing's debts with the Treasury and paid part of the debt that was urgent to avoid a seizure of the club," said the finance minister of the northern region of Cantabria, Angel Agudo.
He said Syed had paid around two million euros, and had agreed with the Treasury on a schedule of payments to cover the rest of the debt.
"The government of Cantabria would like to say that Mr Ali meets his commitments," Agudo told a news conference, accompanied by Syed.
He said the Indian billionaire "has resolved a situation that had left Racing very compromised".
Syed, the founder of Bahrain-based asset manager Western Gulf Advisory, bought Racing Santander last month.
The club, based in the northern port city of Santander, are 12th in the first division, five points off the relegation zone. They have never won a major title in their 98-year-history.
Syed has said he wants to focus on talent, and not big names, in his quest to create a "great" club.
The businessman made an unsuccessful 300-million-pound (350-million-euro) bid to buy English Premier League side Blackburn Rovers earlier this season.