San Jose into liquidation.

UPDATE:

As I mentioned before, and due to the geographical closeness to San Jose headquarters, we have been informed about some issues not very nice. Last Friday, a journalist of the radio station “Onda 0” informed us that the main administrator of San Jose suffered a brutal aggression that drove him to hospital, it seems that the aggressor could be a supplier, although we are trying this to confirmed by the police.

This matter although it is of no importance for us or for our clients, shows the tension atmosphere that currently exists here…

We were able to know as well that one of the two Judicial Administrators named by Court has declined to do it because of justifiable reasons, so in the next hours, the final Judicial Administrators will be named and they will begin to work with the piles of paperwork and files they have to study.

Nevertheless, the most important news of all, although it is not confirmed yet (we are working on it) is the one saying that it is very possible that all clients who were purchasing a property with San Jose, those ones who actually paid a deposit for their properties, will be included as creditors directly. Of course, this is something that if true would make easier the situation. We hope to have the final confirmation for Wednesday, something we will post here for your information.

Best wishes,

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PLAYA GOLF 1, 2 & 3

 

For those of you who might be wondering about accepting alternative properties on Playa Golf, we have bought an Azucena (White Lily) on Playa Golf III R3. It was completed in Sept 2005 and now we have all the documents as owners. Our community was set up last year and we now are totally up and running.

The infrastructure is growing week by week, so we now have an Aldi supermarket, bank, bars, restaurants and other small shops including a florist, hairdresser and news agent. We are also on a bus route that passes by Playa Golf. So you don’t have to take the car to the main bars on the N332.

The road surfaces have been finished off by the local authority; we have street names and a postal address, so I guess that the Town Hall regards us as a legal urbanisation!

Our committee was in talks with San Jose to try and get some more green areas put in around the urbanisation, but I recon that’s on hold for now.

The people on the urbanisation are very friendly and there is a great community spirit about the development. We are not all English; there are several nationalities, Spanish, Norwegian, and Irish to mention but a few. So as you can see, if you decide to move onto Playa Golf you will be made welcome by everyone.

The only downside to this development is the occasional bad smell, but it is only occasional and after a few beers at Alfie’s Bar or one of the other bars on the Urbanisation you will forget all about it.

If you would like to find out more information about Playa Golf, we do have a Blog, pm me for a link, also take a look at Playa Golf posts on the off plan developments section of EOS.

Hope things go well for you and you get sorted out so that you can enjoy the Costa Blanca and all it has to offer.

Sping.

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Hi Sping,
I am not one of those involved in the San Jose scandal, but I just had to reply to your post.
How refreshing to hear someone who is happy with their property and urb!
Your comments will go a long way to encouraging those unfortunate enough to be caught up with San Jose's plight.
There could be a happy ending for them, let's just hope so.
Well done.............

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Hi

I don't know about you but we attended the meeting yesterday in Birmingham and feel more confused now than before

I think majority of us there, are at Santa Ana, with PSI and Ambasun and dont have Bank Guarantees. I think Ambasun as the agent could have at least shown up as they are based in Birmingham, also we have been very misled with regards to PSI, we put our trust in these people and now we have got to put our trust in another company. Is it once bitten, twice shy.


We have just spent the last 2 hours reading the forums and looking into lawyers and really havent got a clue what to do!!

How do you all feel?  We would love to see the property built, but deep down I think its very doubtful.

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Hi Andy & Lynne,

It is understandable that you are confused. I think that there is no-one who actually knows what is going to happen. Maybe even San Jose are confused (who knows).
The truth is that there is nothing you can do at the moment apart from at least ensure that you have independent legal representation who can advise you and represent you in Spain every step of the way.
The process for applying for the type of voluntary administration that San Jose have applied for takes about 3 weeks usually for the courts to even approve! So... even if you wanted to make a decision now, you would have nothing upon which to base that decision as it could be that everything is different in 3 weeks.
We happen to know, because we are based here and are following the matter closely, that San Jose is trying everything they can to find the funding that they need to carry on their current projects. We also know that this is the primary motivation of the courts in these sorts of circumstances (i.e. to avoid bankrupcy). Therefore, if the funding gets found, or they manage to dump some assets for some decent cash within the next few weeks, we are talking about a whole new ball game. Equally, if everything goes to pot (in the worst case scenario) and the project isn't going to go ahead at all, not even through another developer, you won't know that for the time being anyway. Equally, this is not something that you or anyone else are able to influence right now
It is really hard when you are in the UK and the laws are different as it is frustrating not to know within which boundaries the situation can revolve but there are some good lawyers in the area who speak English and who will be able to ensure that everything will be done in order for you to lose out as little as possible under any circumstances that may occur.
The problem is though, that only time will tell what will happen and that cannot be changed!
Keep logging on though and us, as well as any of the solicitors in the area, who find out anything will ensure that tany information is passed on as quickly as possible.
Try to worry as little as you can possibly manage (under the circumstances) :)

Take care.

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Again...

1.- If you have a Bank Guarantee that you can execute ( because the completion deadline of the contract) has arrived and building is not finished, go to execution of Bank Guarantee.

2.- If you do not have a Bank Guarantee :  our advise is to just look for a legal advisor that you can trust and ask him/her to register your credit as privileged and special.

That simple.

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That is sound and simple advice for people that don't want to go ahead with their purchase in light of the circumstances but of course, some people have bought in Jumilla because they actually want to have a property there so it may be that should the project go ahead in the end (which is a possibility), they would want their property and not necessarily their money back!
Your interview was really good Maria by the way!

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Oh, yes... you are fully right. Thanks for pointing that out.

We have been so involved in contract cancellation rights lately that  I just  left that other option out.

In that case, even when it is possible that the development will go ahead  just forthe decission of administrators/company itself, it would also be advantageous if you buyers, make a direct statement/petition to administrators in that sense together with the registration of your credit.

Best,

Maria

This message was last edited by mariadecastro on 5/26/2008.

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Hi Maria,
I listened to your interview and it was the most helpfull advice that i have heard from an Abagado. We have allready started the process of coming together as a group to contact the Administrators is support of SADM under the headings of SARC and I want my House. The crucial thing is that we need to contact our Spanish co purchasers to ensure that they have the opportunity to be part of that loud voice and included in the process.
Do you have any ideas as to how we can contact them?
All the best to you
I want my House
Tony  R17  18

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have you already tried trough EOS development´s  forums?

Thanks for your kind words. We just humbly try to put all our knowledge and experience at the service of our clients. We love the adventure too!!

Maria

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Hi all,

In our opinion, there is very little chance that San Jose will complete the Jumilla site.

I say this because of various reasons (and please take this as my personal opinion, which I write here not intending to scare anyone but just because I have been asked this questions by many of EOS members):

1. The prices agreed in the purchase contracts are far lower than the construction prices today. Construction cost of an independent property today in Spain is not less than 1.000 euros. If you add licence costs, legal fees, admin costs, insurance, bank guarantees, land value, golf course repercussion costs, etc., there is no way a developer today would be able to build this development at the agreed prices.

2. San Jose has included all buyers in their list of creditors, which they didn't have to. Those clients that all they have got is a contract, don't have any credit unless recognised by the debtor. The fact these credits have been recognised can only mean they understand the development cannot go ahead.

3. Having been on site a week ago, there was nobody there, except for the sales people.

4. Market to buy the project or to buy the houses its just not there today. Hundreds of companies in the construction business in Spain are going into administration and many of them will eventually be bankrupt. 

5. Where is the money to build?

6. The appointed administrators will have to decide on the best interest of creditors. Would you decide to go ahead if you were the administrador, and take the risk of a bankruptcy?

These are just thoughts and, of course, anything can happen at this early stage. We will see the sucession of events in the next months.

Regards to all.

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Abolex:

Please be so kind to let me confront you a little bit.... that is our proffesion about, is not? By the way... thanks for sending the Herrada del Tollo Court Documents to us recently, that is very kind of you.

Please have answers below in bold green ( same text of your email):

Hi all,

In our opinion, there is very little chance that San Jose will complete the Jumilla site.

I say this because of various reasons (and please take this as my personal opinion, which I write here not intending to scare anyone but just because I have been asked this questions by many of EOS members):

1. The prices agreed in the purchase contracts are far lower than the construction prices today. Construction prices are being revised and can keep being revised in the near future.Construction cost of an independent property today in Spain is not less than 1.000 euros. If you add licence costs, legal fees, admin costs, insurance, bank guarantees, land value, golf course repercussion costs, etc., there is no way a developer today would be able to build this development at the agreed prices.

2. San Jose has included all buyers in their list of creditors, which they didn't have to. Those clients that all they have got is a contract, don't have any credit unless recognised by the debtor. The fact these credits have been recognised can only mean they understand the development cannot go ahead. Those are good news.... how do you know everybody is included? Is there any official information now? Have they been registered as special and privileged?

3. Having been on site a week ago, there was nobody there, except for the sales people. That can be turned.

4. Market to buy the project or to buy the houses its just not there today. Hundreds of companies in the construction business in Spain are going into administration and many of them will eventually be bankrupt. That is transitional.

5. Where is the money to build? Is it possible to get that money in the near future? Would buyers will be prepared to keep depositing  secured ( by Bank Guarantee or Insurance Policies )money  if  payments benefits are offered to them.

6. The appointed administrators will have to decide on the best interest of creditors. Would you decide to go ahead if you were the administrador, and take the risk of a bankruptcy? I cannot understand this question.

These are just thoughts and, of course, anything can happen at this early stage. We will see the sucession of events in the next months. Best regards my colleague,

Regards to all.

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Dear Maria,

I am now off to Alicante again, so can't extend my answer.

By your post, one would think you have my same opinion. Of course everything can change, but with today's scenario, it is more likely to happen the way I think.

Regarding the list of HERRADA DEL TOLLO, I had access to it last week in Court. Everyone that asked me is either in the list or bought from a third party (Arriba Homes SL, Ambasun, etc) who are in the list. I have explained to those not in the list but that bought from a third party, that they will have to sue that third party, as the contract they have does not link them directly with HERRADA DEL TOLLO.

I don't know how they have been registered, but I presume as "ordinary" credits.

Regarding point 6, the administrator in an Administration process will have to make decisions under his responsibility and overlooked by Court, as you know. I don't think a decision to continue building would be in their heads. But, of course, time will say.

Best regards,

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It may not be in the Administrators heads but it is in ours and others.  I agree with what you say Martin,as things stand at the moment but it is going to be a bumpy ride and if there is a way and finance can be found we still want our house.  So we prepare for a worse case scenario and protect our deposit by being on the creditors list but look for ways to make it a better scenario if that is at all possible.  We face the facts as they are at the moment but do not sit back and think Oh well never mind. We respect others thoughts and opinions also and they are good to here.

We have lived here for eight years and are integrated into the Spanish way of life in this area.   All this is in jeopardy if we cannot have our house as without pensions (also lost in the last financial crisis in the UK) we cannot survive in this rural area.  So we want our house and golf course. 

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Dont take it wrong, it was just my honest opinion. regards

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I did not take it wrong and am very pleased you have an opinion and are open and able to share it.  I hear today the administrators have been chosen.  I will be in touch shortly by email.

Kind regards
Linda

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Dear All,
i spoke to Pilar today and she said that all of the purchasers details were supplied by San Jose to the Court and that the Court will contact San Jose to send out notifications to ensure that the addresses are correct.  Pilar was very upset at the suggestion that she or her colleagues would fail to do this. I know we want our houses but Pilar and the staff of San Jose would like their jobs too.
Wishing you all the best and for the most favourable outcome for all
I want my House
Tony R17 18

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If it were not for this forum i would not even know about San Jose difficulties.  I have even had to ask for a copy of the letter they were sending to other people.  I still await the common courtesy of a reply from Pilar, from last week.

I would not rely on San Jose 'telling' me they have done me the favi=our of placing me on the list of creditors, i have nothing to be gratefull to them about.

They will not be getting the briando55 award for builder of the year, thats for sure.

If Pilar is good...another job will be there, with someone who can deliver.

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Hi All, 

This is my first post but my partner has posted before. We are plot R7 - 8.

Our solicitor has hinted that we cannot be 'privileged' creditors as the property has not been built yet - does anyone know if this is right? Also, how do we check if we are on the list of creditors - the link provided earlier didn't work for me. Or do we have to wait for 'the letter'?

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To keep the building is possible and necessary. Some arduous renegotiation , refinancing and re- contracting is needed  but a hard, expertised, crafty  legal and financial work could do wonders. I would not give up.

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