Spanish Property Developers
07/01/2010
POLARIS WORLD is currently experiencing financial issues and has sought the protection of the Spanish Insolvency Act. POLARIS WORLD, in a last attempt to avoid going bankrupt has asked the commercial courts to assist in securing more time to renegotiate its huge debts with the banks.
Developers, such as POLARIS WORLD, can take advantage of a recent modification of the Spanish Insolvency Act, which allows organisations to notify the banks the renegotiation of debts to avoid legal proceedings for bankruptcy by presenting a formal law suit where they notify their intention of applying for a voluntary insolvency proceedings beforehand. This can delay insolvency proceedings for four months meaning that the Board of Directors would not be personally liable for the Companies´ debts.
When a large developer such as POLARIS WORLD decides to involve the Courts it indicates the financial position of the company is poor, that it does not have enough cash to complete all its developments. In the long run it is likely it will eventually end up in 'voluntary insolvency'.
If POLARIS WORLD is declared bankrupt, this could potentially affect many English people who have invested their savings in a holiday home in and around Murcia, and who are still waiting for their property to be completed.
It is important these people must be made aware that the Spanish Insolvency Act requires any company which presents an insolvency proceeding to include all its subsidiaries, which in POLARIS WORLD's case includes a large number of companies which were created for each development:
- EL VALLE GOLF RESORT, S.L.
- POLARIS WORLD SPORTS CENTRE, S.L.
- POLARIS DESARROLLO, S.L.
- HACIENDA RIQUELME, S.L.
- POLARIS WORLD DEVELOPMENT, S.L.
- POLARIS WORLD ALQUILER DE MAQUINARIA INDUSTRIAL, S.L.
- POLARIS WORLD HORMIGONES, S.L.
- POLARIS WORLD REAL ESTATE, S.L.
- HACIENDA VERDE, S.L.
- NICKLAUS GOLF TRAIL, S.L.
- MAR MENOR GOLF HOTEL, S.L.
- LA TORRE POLARIS HOTEL, S.L.
- CENTRO COMERCIAL EL OASIS DE ALHAMA, S.L.
- POLARIS CIUDAD, S.L.
- ALHAMA GOLF RESORT, S.L.
If you are a purchaser please review your contract to check whether your property is being developed by one of these companies.
This situation not only affects those who have purchased a property from POLARIS GROUP, it could also affect the other big developer in the Murcia area: CORVERA GOLF.
In these situations professional advice is essential in order to safeguard the money and the rights which could correspond to investors who have acquired a property from these financially unstable companies. Irwin Mitchell is currently assisting clients who are facing similar scenarios.
To avoid potential pitfalls; always seek legal advice.
For further information please contact: José Maria de Lorenzo, Gustavo Calzado, Pablo Sánchez or Marisol Pérez on + 34 952 209 860 or at josemaria.delorenzo@irwinmitchell.es / gustavo.calzado@irwinmitchell.es / pablo.sanchez@irwinmitchell.es / marisol.perez@irwinmitchell.es
FOOT NOTE : If you have previously read this article, please note that the current list of companies is the correct one.
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