What's Happening With Aifos?

Published on 15/09/2009 in Your Spanish Home

Commercial Court No. 1 of Malaga has opened the deadline for creditors of developer Aifos,  under voluntary insolvency proceedings, to report their credits to the administration, as published on the 23rd of July, in the Official State Bulletin (BOE).

AifosCreditors have one month to communicate in writing to the Court their credits, with al pertinent data relating to its concept, size, maturity and acquisition dates and characteristics. Importantly, the creditors need to mention and ground the qualification that they intend to their credit, as provided in Article 85 of Insolvency Act.

Aifos retains the powers of administration and disposition of its assets, subject to the intervention of the insolvency proceedings´ administration.

It is important to note that these Insolvency proceedings are designed, in principle, to try to save the economic life of the company through agreements with creditors and not always the end is in bankruptcy, ruin, disaster or catastrophe! 

Of course, a good legal direction of the participation of creditors in the process makes the difference as to the cashing possibilities of the credits.

For example:

1) If you were fortunate enough, (even when as you know it is a legal obligation out of Law 57/68) to receive a Bank Guarantee or insurance policy, the financial institution or insurer who signed the guarantee will have to respond, i.e. your rights against such entities are not affected by the insolvency proceedings. A different matter is that they might oppose the payment; in this case, you must urge the execution of the Policy to the Judge.

2) If you have a contract with Aifos that can be legally cancelled, it is actually being cancelled or has been already awarded a cancellation by the Judge, you have got good tools to fight for your credit to be considered "against the goods/estate" and be paid first, as a regular credit which is not imposed with the rules and restrictions of the insolvency proceedings, i.e. your credit will not be affected by the insolvency proceedings. 
As additional information for those who still have some curiosity on Aifos: they have claimed insolvency by "insufficient working capital and the need for short-term financing" claiming they have a “net patrimony (difference between economic values that owns and debts or obligations) of 268.5 million € at the beginning of 2008”. 

The company filed for insolvency proceedings by arguing that it is in a state of imminent insolvency and that the company is in a progressive deterioration of its activity.

It is important to also remark that the defence of off-plan buyers, consumers in this type of proceedings is a challenge due to the inexistence of Case Law on the matter at the present moment. Both  Insolvency and Consumers Law give enough instruments for a good concert for the benefit of consumers, the weak parties.

Written by: Maria de Castro

About the author:

Maria de Castro is a Spanish Lawyer and the Director of the Law Firm www.costaluzlawyers.es.

Costa Luz Lawyers are contract and consumer real estate law specialists covering all parts of Spain. You can contact Maria at mldecastro@costaluzlawyers.es

Right arrow icon Send to friends   Right arrow icon Printer friendly version    Right arrow icon Submit your own article


Only registered users can comment on this article. Please Sign In or Register now.

Comment Using Facebook:

Related articles in this category

20 Home Staging Tips With a Difference

A Week in Spain

Achieving a Comfortable Temperature in Your Spanish Home

Are The Banks Paying Their Community Fees, IBI, Etc?

Bank Guarantee For Renting Your Property

Big Spanish Property Price Drop – Real Case Study

Bills, Bills, Bills

Can't Afford Your Mortgage In Spain? These Are Your Options

Can't Sell? Rent It Out With Option To Buy

Community Commotion

Coping with the limited space of an apartment

Counting The Costa Locking Yourself Out

Currency Update - Eurozone Jitters

Currency Update - Eurozone Jitters Continue Following Spanish Bailout

Currency Update - Is Spain in Trouble?

Currency Update - Sovereign Debt and the Euro's continued fall

Currency Update - What Is Happening To Europe?

Currency Update April 2011

Currency Update August 2011

Currency Update March 2011

Currency Update: Euroland and US - Where are we at the moment.

Demolitions in Spain

Do I Need To Pay Capital Gains Tax In Spain?

E.T Phone Home....but Maybe not from Spain

Entering a Community and the Role of the President

Euro Currency Update July 2011

Euro Currency Update: October 2011

Euro vs Sterling Currency Market Update

Expats Hit Hard By Property Tax Probe

Furnishing Your Property in Spain

Furnishing Your Spanish Property For Holidays Or Rentals

Getting Your Pool Ready for Summer

Home Insurance in Spain

Horizontal Property Act - Part 1

Horizontal Property Act - Part 2

Horizontal Property Act - Part 3

Horizontal Property Act - Part 4

Horizontal Property Act - Part 5

Horizontal Property Act - Part 6

Horizontal Property Act - Part 7

How Do You Value A Property In Spain?

June Currency Review of Euro Vs Sterling - Things Are Looking Up

Long Term Rentals in Spain

Maximising The Value Of Your Property

Mortgage Arrears – Is "Handing Back The Keys" A Solution?

NIE Numbers And Why They Are Important

Protect Your Home in Spain From Insurance Claims This Winter

Ratable Values Are Being Revised In Marbella

Recovering Community Fee Debts From Overseas Owners

Security Is The Key For Your Home In Spain

Some Spanish Property Market Good News?

Spain Ends Monopoly Of Electricity Supplies – Could Your Community Make Savings?

Spanish Property Market Values - What Is The Truth?

Sterling - Euro Reaches New Highs

Swimming Pool Regulations

Target the Spanish

The Day the Don Juan Community Defeated Don Juan

The Impractical Side Of Spanish Architects

The Nota Simple Explained

The Pound And Euro Face Uncertain Times

The Spanish Property Crisis - How long will it last?

The Stirling Euro Yo Yo Effect

There's Something About Spain

Tips On Selling Your Spanish Property The Distressed Way

Top Sales Tips: Get The Best Out Of Your Estate Agent

Top Tips For Insuring Unoccupied Holiday Homes In Spain

TRG for Sellers

Update On The Euro From Moneycorp

Valenica Land Law Abuses Fight For Justice Continues

Weekly Euro Update - 18 May 2010

Weekly GBP Euro Update - 20 July 2010

What is a comunidad de propietarios?

What The Future Holds For The Spanish Property Market

What to Do If Unable to Pay Off a Mortgage to a Bank in Spain?

What's Happening With Aifos?

Where Is The Eurozone Economy Heading?

Why Do So Many Still Put Spain Down?

Why Is My Spanish Property Not Selling?

Why to Insure Your Spanish Home in UK

Wills in Spain - No Will....No Way

Your Property on the Web - Simple!

Click here for a list of all the articles from our magazine 

Spain insurance services

This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x