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Spanish Property Developers in Crisis

Many British people have bought properties from Spanish developers who are now suffering as a result of the financial crisis. This blog will provide updates on the current situation and useful information about the problems British buyers are facing in respect to their Spanish properties.

25 January 2011 @ 12:32

Back in September, 2009, the company known as Aldea Advisors SL was declared in a creditors' voluntary insolvency. The procedure is being followed in the Commercial Court nº1 of Alicante.

A large number of purchasers who wanted to buy a home in Spain, and entrusted the management of the purchase to Aldea Asesores SL, have been affected by the insolvency of the company.
Many of the affected, who have taken part in the insolvency proceedings, are those who, after learning that their homes would not be built, instructed Aldea Asesores SL to claim their money back from the developers for the payments made on the properties. The company carried out the assigned task, the bank guarantees were pursued correctly and Aldea Asesores SL received the amounts that should have been refunded to the clients, before the declaration of bankruptcy took place.
The problem arose when customers, claiming their money back from Aldea Asesores, and after waiting a reasonable time with no response, received the news that Aldea Asesores had voluntarily submitted to bankruptcy proceedings. Consequently, in order to recover their monies, buyers have been forced to go to the Commercial Court to get their credit acknowledged, adding themselves to the list of creditors affected by the financial situation of the company. Others involved have also chosen to bring a lawsuit for misappropriation of the funds which should have been refunded to them.
Following the corresponding proceedings in the insolvency and after having made an inventory of assets and liabilities, the insolvency administrators have submitted a draft agreement in which the company agrees to pay all the unsecured debts within three years starting from the approval of the agreement. The amount of these loans amounts to 2,986,395.79 Euros.
So, if the agreement is approved this year, and since there is no commitment of any partial payments, the company will not refund the amounts to buyers until 2014. The agreement would include payment of 100% of the amount of the mortgages, so creditors should recover all monies invested in due course.
As the company has lost it’s credibility to continue carrying out the consultancy activity in what concerns property purchase operations, the formula proposed by the insolvency administrators to pay all creditors, consists in waiting till the actual financial situation recovers in order to obtain the highest possible profit out of a property owned by the company. This is valued in the court proceedings to the tune of 4,528,154 Euros.
Therefore, if you are involved in the process you must keep an eye on the progress of the proceedings and the approval of the agreement by the court. Then you will have to wait for Aldea to fulfill their agreement once the stated period for payment has commenced.  

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