Polaris World Avoids Falling Into Insolvency
As we had previously reported, PW was on the brink of filing for Insolvency if it failed to renegotiate 85 million euros of debt. It had already negotiated successfully to refinance over 900 million euros.
PW has successfully waived filing for receivership on reaching an agreement late last night with CAM, Bancaja, Bank Popular and Bank of Valencia to sell assets for the amount of 83 million euros. In exchange PW has transferred ownership of dwellings, golf courses, plots of land and hotels. It has taken PW the last 4 months to re-negotiate its debt commitments. Official confirmation will be today.
The group of companies affected by the possible insolvency were two hotels (Mar Menor Golf Hotel and La Torre Polaris Hotel), El Valle Golf Resort, Polaris World Sports Centre, Polaris Desarrollo, Hacienda Riquelme, Polaris World Development, Polaris World Alquiler de Maquinaria Industrial, Polaris World Hormigones, Polaris World Real Estate, Hacienda Verde, Nicklaus Golf Trail, Mar Menor Golf Hotel, La Torre Polaris Hotel, Centro Comercial El Oasis de Alhama, Oasis Polaris Ciudad, y Alhama Golf Resort.
Currently it has 700 employees which is a long shot from the 2,000 it used to employ in the boom years.
Source: La Verdad (http://www NULL.laverdad NULL.es/murcia/v/20100423/region/polaris-world-elude-precipicio-20100423 NULL.html)
It is excellent news for everyone involved with Polaris World. The company is a huge contributor to the area for jobs both direct and indirect with the many service companies. The Murcia area is growing fast, new airport, road and rail links and the property market is showing far greater confidence. This should put the worst of the recession well behind Polaris.
We’re 2,5 years further.
Where do we stand?
All I read is that the Polaris projects only have a 10-15% PERMANENT occupancy.
And that would be far too low for me to buy one.
Projects that depend largely on rentals are easily worn down.
And with only 20-30% owners, there is not enough money for proper maintenance. Banks are not interested either, although they should realize than poorly maintained apartments don’t sell.
P{lease, any news???
Jon,
Realistically, your best bet is to try to get out of the contract and sue the bank involved in guaranteeing the downpayment.
I would not put my money in any other legal action proposal against the developer given their cash flow situation being flow-less (!), and thus the developer will not be able to provide you a discount, let alone a refund of your deposit should you win a case.
So provided the developer is in default, and they have not obtained the license of occupancy, you should consider the bank guarantee action.