Polaris in Bankruptcy Protection!

Tony,

The latest update was yesterday, which I posted below.  There will be no update today as it's a national holiday.  There maybe something new this week, but as a lot of people are on holiday I wouldn't expect any news until the start of next week.  I'll post any news I see in the Spanish papers.

Phil

We hear today that the situation has been "resolved". Certain assets have been sold back to the bank to clear the 100 million. We await a more formal announcement by Polaris World but that is the news from within the company.

www.polarisworld.info/update.php

This is good news.  Posted by a company called Villa Cashback who I used to purchase my place through and who were very professional throughout.   They seem to be pretty well in touch with PW and - as far as I can tell - are one of the more prolific selling agents for them.  Hopefully the news is accurate.  Arlene

This message was last edited by TheQuietMan on 09/01/2010.

Hi Quiet Man,

The hotels are leased to Intercontinental, but still owned by Polaris. Whoever takes possession of these properties will have to honour the existing lease, so it will be business as usual for the hotels.

http://www.polarisworld.info/update.php latest - lets hope this is correct ??

picked this up from an EOS Link to 'Affected by Polaris World' used Babel fish to translate

Before the situation of the recognized one at the end of the past month of December of insolvency of Polaris World, buyers have initiated the process of execution of endorsement to reclaim their money. The Murcian company/signature Polaris World announced 28 of December the past the insolvency situation through which they almost pass half of his societies. These around accumulate a debt of 100 million Euros. Thus it has communicated it the company to the Court Superior of Justice the past 22 of December. With this communication, a term of 3 months is abre in which Polaris will have to reach an agreement of payment with its creditors. Otherwise, it will be forced to summon contest of creditors, old suspension of payments. This situation has had his first consequences with the affected creation of a platform of that it looks for “to unite the forces of all the affected to protest”. And it is that the bought ones worried about the destiny about the real estate group that are affected so much by the delay in it deliveries about the houses like by the delay in the beginning about works can protest that they give back the amounts to him given plus the legal interests. The Platform is endorsed by the procedural department of Lexland Lawyers, specialized in transaction contract resolution. The past Lexland year already laid an important way when obtaining that it condemned for the first time in our country an insurer to give back to the buyers the given amounts more legal interests by delays in the beginning of works. Dimas Cuesta Montejano, partner of Lexland, affirm that the affected ones of Polaris World that want to protest solely “they must contribute to the insurance policy and a convincing document that credits to the delay in the delivery or the nonbeginning of the work within the been suitable term”. Hill indicates that great part of also the affected ones demands contractual breach. Swimming pools nonconstructed, absence of golf courses or a commercial center that are not located in the place that was projected are the most frequent complaints. The company/signature of lawyers remembers that the publicity is legally binding, reason why is studying to present/display a joint demand for this type of claims. With respect to the insolvency situation, one scores at that the main creditors of Polaris World are the banking organizations of Bank of Valencia, Bancaja, Murcia Box, CAM, and Popular Bank, auque seems to be Bancaja the organization that more amount has put at the disposal of the promoter. to reach an agreement between Polaris World and the banks, the communication would be filed and there would not be contest. Polaris began its activity in 2001 and got to invoice more than 800 million annual Euros giving use more than 2,000 people in Spain and the foreigner.

Commentaries Javier 0 Good morning: My case is that I am in proceedings of the company/signature of transaction with Polaris of an apartment in Gardens of Alhama. Polaris like intermediary acts before the proprietor that it already sells the notarized apartment to his name the past year. My question is: I have some risk? , if not yet they have constructed the second phase of County of Alhama, I can protest. The house that I buy if it is constructed and finished, as well as the urbanization. what I do. Agradeceria a respuesto or advice. Thanks

Jeb,

Can you translate 'the translation' please. 

Regards,

I read this article earlier this week, but my translation made a little more sense.

It says that some spanish people have appointed a law firm (Lexland Lawyers) to take Polaris World to court, they are trying to get their deposits back.

The contracts are difficiult to get out of (I know just spent a year in court getting out of a contract on my Vegas property), so the lawyers are trying to argue breach of contract by Polaris, as they didnt deliver the town centre etc. etc.

Thats my understanding at least Billbo, if someone knows better let me know.

Has anyone found any recent news on Polaris World regarding the insolvency situation.

I regularly search the the 'net and Spanish newspapers and ask my inlaws who occasionally get little snippets via a friend of a friend who sometimes plays golf with someone in the PW hierarchy. Despite all this I havent seen/heard any current information- there's been a couple of rumours that say all is resolved but nothing substantial to back the rumours up.

Next week we will enter the 3rd and final month of the 3 month protection from insolvency that PW were granted- so, has anyone heard anything concrete?

Last bit of newsstory on Polaris was this from the 8th Feb. - http://www.euroweeklynews.com/2010020872677/news/costa-blanca/desperate-measures-at-polaris-world.html

I would not anticipate any news from Polaris till the last minute, they will want to utilise the full 3 months I would imagine.

Although if anybody has any substantiated news, please share it.

Yes, I had seen this and thought it wasnt telling us anything new. The first part is a rehash of the info that came out at the beginning regarding the level of debt and who needs paying off and the second part regards how depositors can try to reclaim their money as they will always be the bottom of the pile if true Bankruptcy happens. I think thats the information many people had anyway hence the exchange from unbuilt properties on other resorts to Condado for many rather than sit it out and see if you get your money back 5 years down the line.

I'm not sure if the complete dearth of information is a good thing or a bad thing- although the fact that we're not getting a succession of negative and worrying leaks of information could turn out to be because PW are going to pull through. Fingers crossed.

I know it is second hand, but one of the Hi5 pro golfers told me he had spoken to the director of Polaris golf and he said a deal had been done and PW should be alright for 3 years.

Hope it is correct.

Barry & Sue

Thanks for posting that information Barry.

I know its not a certainty because its not in any way official  but it seems to come from a similar source as my in laws snippets generally come from and which have usually been accurate. I'm in the 'better the devil you know' camp regarding Polaris and insolvency so continue to have my fingers crossed.

I know a lot of people feel the resort may fare better if other developers can buy into it if Polaris goes under. That process takes a long time though and would produce a bit of a feeding frenzy probably breaking the resort into separate sections -in the mean time we may loose our bar and restaurant amongst other things that may be left to run down whilst Al Kasar awaits new finance. Even though PW dont seem to be being very efficient doing repairs on properties etc that would stop completely pending a new  buyer, plus any small projects they have in hand at the moment - like the building on the golf resort, would stop.

However, this is just my opinion and I may be being short sighted. Another thread ages ago covered a lot of this and lots of people thought if Polaris went bust other developers would be in quick as so much ground work has been done by PW which would put other, more secure developers, in a good position to continue the resort. However, I believe they could change the whole ethos of the three golf course resort with the Oasis- which may now take PW a long time to create but should be worth waiting for.

 thanks for the update, we wonder what is going on over here in the uk looking forward to coming out in March.

regards nick naranhos 8 and fareham hants

There is considerable work going on with Hacinenda and Terrazas town centre so Polaris must have had some some cash injection. They have also started the last phase of Terrazas. 

The 'last phase' of Terrazas???

Was phase IV, now called phase II - Penthouse apartments. I didnt want to wait and have swapped to Condado.