San Jose into liquidation.

Hi All,

I have just been told that yesterday San Jose went into liquidation.

I have mentioned this company before on here and aired my concerns.

This is the time when i hate being right........

San Jose have applied for voluntary administration, on Friday. A judge will decide if they have enough assets to cover their creditors. Apparently this takes about 2/3 weeks ** EDITED - Disallowed website **

I have been told that they have enough assets but  it looks doubtful  that  development will go ahead.  I think there is some news on www.spanishpropertyinsight.com also.

My contact seems to think that they have little asset against debt ratio which will mean that there will be an awful amount of creditors in the queue.

i would say the banks will call in their finance first and the clients who had paid deposits will be way down the pecking order.

The implications on a wider scale are that a large amount of the larger agents that used to constantly stream up to Jumilla will fall along with the developer,they will all be owed commissions due on completions that now will never materialise,this in affect will be passed onto their clients......

The signs were there,Albatera denied licence,El Pinet denied lIcence,Jumilla issued part licence.

i feel for anyone caught up in this mess as the ripples caused by this will spread and spread...........

Hi

As I understand the property development company is Herrado del Tollo S.L. it is those who are not able to comply.  San Jose have 300 million behind them so they are infact asking for Suspension of Payments which for the moment means they are trying to avoid liquidation by reorganising the company, surely that is not the worst news just yet.

What I cant get my head around is we are being asked to get in touch with our Lawyers and so far I cant seem to get hold of ours.  It really saddens me.  I would like to think that San Jose can survive because I have heard nothing derogatory (dont know how to spell it) about them as a Company. 

Does anyone know if the only option is to go to court and get our money back or, are there any other options.

Christina

I may be coming across a little thick here, but how can San Jose be bankrupt, he has taken 50% off everyone for their property, not one single house has been built, so where has the money gone

Im moving to Spain month next and renting an apartment whilst I wait for my house to be built, the money we put down with San Jose was to start our new life

Hi Andy & Lynne

Same here. Where you supposed to be having a house built in Jumilla ?

Christina.

Yes we are were due to be completed Jan 2008, then July and the latest we were told is end of 2008

We have sold everything in the Uk and as of next month moving to Spain to await our property being built!!!!!

Dear Andy & Lynne

If you have a signed completion date for jan 2008, you do have a strong chance of recovering your deposit.

First of all, you do have your reason to ask for a reversal of the contract and, therefore, to recover your funds. This should include your expense of renting an apartment.

In a bankruptcy process, as you do not have a credit yet (until you have a Court sentence), you can file a claim to the same Court that works on the bankruptcy and, therefore, your credit will be inside the process as a "litigation credit".

This way you achieve defending your debt and also being part of the bankruptcy.

You probably are upset enough of your "dream purchase" but try to be positive and start action as soon as possible.

** EDITED - Spam **

Regards

Hi

We are in the same position as Andy & Lynne and it is very distressing.  We had a completion date for May 08. We sold a lovely home in the UK in the hope that this was going to be a happy adventure.  Our Lawyers are not very good, we now know it was a mistake to have a Lawyer that was recommended by the Agent. It is a horrible situation.  I have felt sick all day and dont know what to do.

Christina

For Maria De Castro

We have a Property Reservation Contract through Amba Sun International S.L. for completion in May 2008.

The Contrato De Compra De Vivienda / Purchase Sale Contract with San Jose / Herrada De Tollo S.L. also states the following:- The balance of the total agreed price, plus the applicable VAT, shall be paid upon the signature of the deed of sale and purchase, which is expected to take place in the month of May 2008.

As we are still in May 2008, does this mean we cannot file a claim against the them yet ?

If so, when do we file a claim.......beginning of June 2008 ?

Please advise as to our best course of action.

Barry

hi All,

It's a terrible situation, we are in the same position our completion date is May 08. We tried to pull out in the middle of last year SJ flatly refused to give us a refund and it seems we were able to do nothing about it. We have no BG either we were promised on several occasions that it was coming. We feel totally let down because like most people we made enquiries about SJ before we committed and as far as we knew they had an excellent reputation but looking at the problems they seemed to have had with other developments it seems I don't know where this reptuation came from!!!

there is a lawer in Manchester who is going to act on the behalf of many clients and put forward a list of names to the judge in the case. we have been added to the list but to be honest we don't know what else to do my Spanish lawer hasn't even come back to me and I phoned in a panic on Monday. she e-mailed saying she cant get hold of anyone at SJ office's!! So we have joined the other clients because we feel there is a better chance of getting our money back if action is taken collectively If anyone wants to know any details etc PM me and i will let you know the website etc.

Regards

Thank you Mariadecastro,

Your advise is very very helpfull

Many thanks

Hi all

This is a very messy situation, placing trust in the developer has not worked, now placing trust in Spanish Law on bankruptcy, which we don't understand, is that going to work any better?

I feel completely helpless, let down and screwed.  The ability of a developer to sell properties that dont exist on land that has no licence, make millions and collapse.  It sounds like a fraud of both the developer and the regional government where everyone has shared out our money and dont give a damn about anything other than their greed.

In the UK if a builder goes bust there is a creditors meeting and an insolvency expert decides by appropriate manner, a dividend to creditors,usualy nothing because the residue is carved up and shared out.

In Spain?  It seems the cost of chasing the debt through the court could be around 7000 euro's and it will take around 2 years to be told nothing to come, at my worst guess.  I am reading some really awful news here and thinking that one way or another it is just going to cost a whole load more money, and get screwed all over again.

Awful situation, awful people.

Brian