20 Mar 2010 12:00 AM:
We do not know the exact outcome yet but this report from Simplynetworking dot es suggests that after March 22nd unsold PW properties will fall to the banks. If this is the case what will happen all the people who have paid deposits (with or without receiving bank guarantees) many of which have purchased on Terrazas, will their properties be built and if so who by. Or will they be asked to move to an unsold property and will the negotation take place with the banks or PW? What will the future be for Terrazas, the article says the a private consortium will takeover completed courses but what about Torre Sur?
Polaris World bankruptcy talks, the unofficial version
Polaris World insolvency, Polaris press statement felt to be a little optimistic
2010-03-09
It would appear that Polaris management were being just ever so slightly optimistic in their assertion that there were one or two "minor points" still to be resolved in the negotiations which will decide whether the company sinks or swims.
Information which has just arrived is a little more specific about some of the points which may still be under discussion and which would appear to be the following, although as yet nothing has been officially confirmed, and is unlikely to be until the last details have been finalized.
Banks to take on all unsold Polaris Properties
We have been told that the banks are to take on anything that still remains under the ownership of the Constructor, which will add an estimated 450 million euros to the value of stock already held by the banks. Properties still remain unsold on the Condado and Mar Menor 2, with smaller pockets dotted around- more than we have been lead to believe in the past.
That's another half a billion onto bank asset sheets.
Golf Courses split off
A private consortium is apparently poised to take over all the golf courses which are on COMPLETED urbanizations, which have a hotel already in place. This is believed to be the La Torre and Mar Menor Resort complexes. What the fate of the others will be is as yet unclear.
Jack Nicklaus is said to be deeply unhappy with the events which have unfolded over the last 2 months and is said to have requested that his name be removed from any publicity associated with these golf courses as he does not wish his own reputation to be tarnished.
The banks are to retain the name of Polaris World, but this will only be a trading name.
Devastation of the workforce.
The biggest blow to the region is the reduction in the workforce. Apparently staff at head offices are to be reduced from 300 to 60 by the end of the month, and at the moment it is unclear what effect this will have on the remaining business activities.
Polaris World Golf Debentures.
All those who paid for 25 year debentures at a cost of 25,000 euros each, along with those who have paid their annual PW Green fees are likely to become creditors of Polaris World should an agreement not be reached with the new"bank management company" to honour their payments.
It is rumoured that 125 people have actually purchased their debentures.
What do the residents of Polaris World feel about all of this?
Talking to residents on the Resorts over the last few days, many have expressed their opinions that the quicker Polaris dissolves, the better.
The feeling expressed is that the management are out of touch with the needs and wishes of the residents, over-priced bars and restaurants failing to deliver what the customers really want, and failing to understand the needs of an overwhelming majority of Ex-pat residents.
Those living on community run resorts expressed the opinion that they were a lot better off without the Polaris management and that the level of service had been considerably better since they ceased to run the resort.
It is always surprising how few ex-pats are ever given the opportunity to assist Spanish businesses who wish to market to the ex-pat community and lead them to a greater understanding of what the people they are trying to market to actually want and actually need.
Economic Crisis is a great leveler. With a little more communication and co-operation a phoenix could so easily arise from the ashes of the Polaris World meltdown.
If indeed, the rumours are true.
Community thread:
Polaris Bankruptcy - What Happens If You Have Paid Your Deposit And Your Property Has Not Been Built Yet?
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