Hundreds Of Briton's Dream At Risk As Spanish Developer Faces Bankruptcy
Spanish property goes into Administration
16/05/2008
Over a thousand Britons could face losing their money, and their dreams of life in the sun, after Spanish Property Company San Jose Inversiones announced that they were going into administration known in Spain as 'concurso de acreedores voluntario'.
The company can continue to trade under the supervision of court-appointed administrators, but if the company cannot turn its financial troubles around it may go into liquidation.
This move could leave thousands of investors, including an estimated 1500 Britons, who had paid a deposit to the company unable to complete on their property.
San Jose Inversiones has sold thousands of properties to British investors looking for a dream home in the sun. Their developments include large golf developments in Murcia and the Costa Blanca, including Jamilla Golf & Country club, Playa Golf in La Dehesa de Campoamor, Albatera Golf, and Dolores Golf.
Law firm Irwin Mitchell who have offices in the UK and Spain are acting for a number of individuals who have purchased property off-plan from San Jose Inversiones and who may now lose some or all of their stage payments. The law firm is investigating ways of recovering money from San Jose Inversiones who did not, at least in some occasions, provide buyers with bank guarantees despite a legal obligation to do so.
Jose Maria De Lorenzo, a Partner in the Marbella office of Irwin Mitchell said: "Once the application to the Court for 'Concurso' is accepted and notified by the judges, which we expect to happen very shortly, buyers should be extremely vigilant as there will only be a month to become included in the proceedings.
"Given the amount of documentation that will need to be filed within this time, including the document of representation that people will need to prepare themselves, those affected will need to act quickly to ensure they are not left out of the list of creditors."
The Spanish press have also reported that the developer Idearco, based in the Alicante region of Spain, shut down their operations last week leaving hundreds of buyers with unfinished developments.