Were Real Madrid when they were indebt just bailed out by the Spanish Government
Well, officialy Real Madrid have never been bailed out by Spanish Government, neither by city council

Real Madrid had some estates in which they were training and were was located the youth school, they bought very cheap because as per the city council this states were not able to build apartmets or offices.
City council changed this status, so Real Madrid sold these states at a very good price. EDIT: what del62 is saying in the inmediatly previous post is absoultely right, expressed in better englihs than mine and shows the seriousness of the facts better than this paragraph [END EDIT]
That's the way Spañistan and the brick culture works, but this is a topic for the off-topic forum rather than football thread
There are rumours as well that in in the 1995/1996 season Real Madrid did not deliver the documentation on time (at least it was correct documentation) to La Liga's organization. There is no information about this because Sevilla and Celta de Vigo delivered a defective documentation so they were relegated to sencond B division, and that became the top new in every paper in the country.
This fact became in a sample of the traditional spanish efficiency, an ode to the clumsiness, the teams that were relegated the previous season were readmited in La Liga in order to continue having 20 teams, Sevilla and Celta threatened to ordinary courts (what would paralize the season), so they were readmited again.
But as I said before just rumours, in any case, they had enough rescue being Franco's team during almos 40 years