Hi there,
First of all, I would like to introduce ourselves. We are a law firm based in Orihuela area-Torrevieja. Actually, we are working together with another law firm in Alicante (Price-Waterhouse) in several lawsuits against San Jose, having clients in all the phases: with private purchase contracts but without Title Deeds, waiting for completion; others in the phase of asking for the refund of their moneys for breach of contract and up until 142 clients with law suits before the Orihuela Courts (as you would probably know, where San Jose is based).
Due to we are so closed to the area where San Jose is has their head quarters, we are aware of some “news” which do not usually appear in newspapers and that we consider all the affected ones by the current situation, should know about.
Some months ago, the main Administrator of the company made proceedings in order to pass all his personal assets in the name of his wife apart from taking other measures to safeguard himself for the possible actions of Court. However, this is nothing to worry anybody because Judicial Administrators named by the Court can null all the actions done by a company up until 2 years since Court has accepted the case.
It is important for you to know as well that about the complex of the Shareholders of San Jose. The 40% of the company is in hands of a few, the rest are little shareholders from Orihuela and little towns around it, who have invested their savings in small amounts (from 20.000 € to 200.000 €). Within the current situation, the last ones are the most damaged ones, due to they are not creditors, and because of that, they have began to take actions that could make more difficult the viability of the company now in hands of Judicial Administrators.
We are aware as well that in the last 2 months, there have been many agreements with creditors where debts were paid with properties and dwellings.
It is true that all those affected by this situation should make it known to the Judicial Administrators, although please note as well that it does not mean at all that you would be refunded back all the amounts paid for the purchase of your properties. Actually, the first task of the administrators will be to try to complete the residentitals and urbanizations in order to complete the transactions, not to pay back any money. Nevertheless, take into account that the location of the properties will have a lot of importance and each one has a different situation. Just for your information and as far as we know:
1) Jumilla has the Partial Planning approved, so the urbanization is considered as “legal”, however, San Jose cannot be issued licences or are not able to go ahead with the building until the infrastructures problems are not completed, that is, they must pay the expropriation of the land plots located in the main entrance of the residential and the execution of the works for the accesses to the urbanization and the connection with the motorway. This is a problem of 5 million € that San Jose does not have nowadays.
2) Playa Golf. Almost all the properties are finished and they have granted as well inhabitation licences. Those faints that San Jose had to pay for beginning the works without licences (so illegally) have been paid already. So, with this urbanization, there would not be administrative problems.
3) El Pinet. This is a more complex issue. We would not have any inconvenience to explain to those interested in this matter or having a property there about their queries without any obligation, but being so long, it is easier to do it though mail.
We are sure, you will be asking at this stage how is it possible that a company so big and with so many sales has gone to this situation? This question has a very easy reply: the bad management of the company towards the land. They bought land plots where they were not able to build in, something that delayed all the projects, so almost in all the developments they were not able to finish them on time. The money of your deposits was gone a long time ago to buy other land plots. We have the example of “Dolores Park”, where San Jose invested a massive amount of money but where they do not have licences to build and moreover, they will probably not have it ever!
To sum up, we are really affected because this situation is trespassing the whole economy of the area where 500 direct workers and 3.000 indirect workers could be fired.
We believe that due to the assets owned by the company, if Judicial Administrators manage properly their work and if creditors and buyers show some comprehension, all could have a happy ending. However, all of us will need to have patience and to act on time and measure. It is very important to be aware of the stages done by the Judicial Administrators and the ones stipulated by Law and to wait the possible negotiation.
I hope this post clarifies some of your queries, but please contact us in case of having any further without any kind of obligation