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Posts Tagged ‘aifos bankrupt’

Reminder: Deadline to Join Aifos’ Creditors List Ends on September 30

September 24th, 2009

We would like to remind all of those buying off-plan from Aifos that the deadline to submit your request to join Aifos’ creditors list ends on September 30. All of those who have not done so already please contact your solicitor as soon as possible.

You will have to forward your solicitor the following:

  • Original Private Purchase Contract signed with Aifos.
  • Original bank statements as proof of the different stage payments paid to Aifos.

Those who fail to submit the paperwork on time will be left out of the creditors list and will lose every chance of recovering anything from their deposits.

If you don’t have a solicitor who can represent you, please contact us (http://www NULL.lawbird urgently.

Litigation , , , , , ,

Developer Aifos Announces it has Gone Into Voluntary Receivership

July 30th, 2009

Rumours were confirmed last Wednesday 22nd of July when Aifos’ petition to file for receivership was formally accepted by Malaga’s Mercantile court number one. On the following day Aifos issued a press release by which it informed they had filed for voluntary receivership.

As we had previously pointed out in prior communications, filing for administration does not equate to bankruptcy as has mistakenly been reported at large e.g. In Spain’s highest profile administration procedure to date, involving well-known developer Martinsa-Fadesa, this company will restructure its 7 billion euro debt and will continue trading normally within the next years.

What developer Aifos has sought is for creditor protection allowing it to buy time to restructure its financial commitments. However, the mercantile judge ruling on the matter may ultimately decide at a later stage that Aifos should file for bankruptcy if it is deemed not to be able to continue trading. This will be decided upon in the ensuing procedure.

As from the time the official announcement is published in Spain’s Official Law Gazette (B.O.E.), creditors will have a deadline of one month to join Aifos’ Creditors list. (EDIT:  Today 31st of July it has been officially published)

Off plan purchasers may fall in any one of these three categories:

  1. Purchasers that signed a Private Purchase Contract and have not had their off plan dwelling delivered.
  2. Purchasers who had already withdrawn from their Private Purchase Contracts and had filed a lawsuit with no final ruling issued yet.
  3. Purchasers who had litigated already and had a final ruling on their case but had not been refunded yet.

As a general rule everyone who purchased a non-delivered property through developer Aifos, whether having litigated or not, should retain a lawyer (and court agent) to join the Creditors’ list and/or litigate. The difference between cases is on their rights (i.e. those with final rulings will be labelled as “ordinary” creditors which lands them higher above on the Creditors’ ladder). Notwithstanding the above, all three cases will be considered as non-secured creditors.

Purchasers will have to liaise with their existing legal representative or else appoint a solicitor to either join the Creditors’ list and/or litigate. Once the receivership has been accepted trials will now be heard only at Malaga’s Mercantile court number one unlike before in which it was actually Civil courts that passed judgement on cases involving Aifos.

Appointed lawyers will seek to best defend their client’s interests in the ensuing procedure taking the following actions amongst others:

  • Claiming from the judicial administrators the creditors’ position of the clients submitting all the necessary documents on time and in the due manner. To challenge adopted resolutions on the matter if proven detrimental to the inclusion in the Creditors’ List.
  • Continued monitoring of the receivership procedure ensuring client’s rights are upheld
  • To negotiate with the judicially-appointed administrators reaching agreements as necessary
  • To keep the client informed on the ongoing procedure
  • Assisting to Creditors’ meetings to defend the client’s interests
  • To claim or challenge judicially agreements taken by Malaga’s Mercantile Court

We will be sending this week to all our Aifos’ clients a detailed newsletter informing them of the legal situation and the available options available to them. This newsletter will also be available to non-clients upon request.

If you have purchased a non-delivered property through Aifos and wish to receive further information on this matter, please contact us free of compromise. One of our lawyers will contact you to explain clearly your legal options.

Email:  Contact Form (http://lawbird
Phone: +34 952 86 18 90
Summer opening hours: Monday to Friday, from 8:00 till 15:00 hours

Litigation, Property , , , , , , ,

Aifos Avoids Second Forced Administration Procedure

February 27th, 2009

Today, Thursday 26th of February, was the scheduled day for the hearing on Aifos’ second proposed administration procedure. Only minutes before the hearing was to take place before Malaga’s Mercantile Court Number 1, Aifos’ legal representatives striked an agreement (http://es NULL.html) with the legal representatives of the petitioner. Aifos’ lawyers provided guarantees of payment that amounted to €311,000 which were accepted.

Mr Enrique Bujidos, an Aifos’ representative, declared to the press they had hired PricewaterhouseCoopers (PwC) to refinance the ailing developer and help it stand back on its own feet. Thirteen banks have already shown their interest in providing a syndicated loan to the developer as well as adjourn pending repayments.

Litigation , , , , , , ,

Aifos’ Second Forced Administration Procedure Accepted

January 21st, 2009

Mercantile Judge number one of Málaga has accepted the second proposal (http://www NULL.marbella-lawyers for a forced administration procedure for the developer Aifos, as stated by Diario Sur (http://www NULL.diariosur NULL.html).

In a resolution from 8th of January the magistrate considers that Aifos now meets the necessary criteria to be declared under administration. Formerly the first forced administration proposal was rejected because the magistrate was of the opinion that its insolvency had not been substantiated enough in the petition. This second proposal has proved satisfactorily that Aifos owes, at least, 7.9 million Euros to different creditors.

Aifos will now be given a formal opportunity to object to the forced administration procedure proposed by one of its numerous creditors.

Litigation , , , , , , ,

Aifos Faces Its Second Forced Administration Procedure

January 15th, 2009

The companies DICO Obras y Construcciones, DHO Infraestructuras and Obrum, three of the Aifos numerous creditors, have requested before Málaga’s Mercantile Court number one a forced administration procedure as result of the funds they are owed, in total more than €540,000 €.

This is the second time creditors request Aifos administration. The first time (http://www NULL.marbella-lawyers was last November, but the Mercantile judge turned down (http://www NULL.marbella-lawyers the creditors petition of a forced administration procedure because they had been unable to prove Aifos’ alleged delicate financial situation.

In Spain, companies undergoing a dire financial situation can either initiate voluntarily an administration procedure or else one of their creditors may force it. The latter has been the case. In such procedures, the creditors who force them benefit from a privilege to recover 25% of their debt in the event of a successful procedure.

Aifos owes 850 million Euro (718 million GBP). It’s largest creditors are Banco Popular with 200 million Euros, followed by Banco Pastor with 33 million Euros. Another 96 companies form part of the creditors list to which Aifos has been owing funds for the last 2 years.

Aifos has currently employed 2,000 workers.

Source: Cotizalia (http://www NULL.cotizalia NULL.html)

(http://www NULL.cotizalia NULL.html)

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Aifos’ Creditor Petition for Administration Procedure Turned Down

December 12th, 2008

El Economista reports today (http://www NULL.eleconomista NULL.html) that Gestión de Obras y Reformas S.L., the creditor which initiated before Malaga’s Mercantile judge a petition for a forced administration procedure on developer Aifos has been turned down by the judge.

As we were trying to explain during the past days (forum thread (http://www NULL.marbella-lawyers NULL.php?t=96), blog post (http://www NULL.marbella-lawyers and newsletter) this forced administration procedure did not mean that Aifos had filed for bankruptcy as it was mistakenly being reported at large.

The judge’s ruling on the creditor’s petition puts an end to this forced administration procedure.

What consequence does the above have? None. As stated, Aifos will continue trading as normal building and selling properties. The announcement of the forced administration procedure did not mean that Aifos had stopped trading and that it will now resume it. Aifos at no time had stopped trading all along this process.

Those who were buying properties will continue to do so and those who were litigating will also continue as well. Nothing has changed. This of course doesn’t rule out the possibility that some other creditor may in the future choose to follow the same path…

Litigation , , , , , , ,

Aifos Faces a Forced Administration Procedure

November 24th, 2008

Gestión de Obras y Reformas, S.L., one of the numerous creditors of Spanish developer Aifos, has initiated before Málaga’s Mercantile Court number one a forced administration procedure as result of the money it is owed. In Spain companies undergoing a difficult financial situation can either initiate voluntarily an administration procedure or else one of their creditors may force it. The latter has been the case.

Aifos owes 850 million Euros (718 million GBP). It’s largest creditors are Banco Popular with 200 million Euros, followed by Banco Pastor with 33 million Euros. Another 96 companies form part of the creditors list to which AIFOS has been owing funds for the last 2 years.

AIFOS has currently employed 2,000 workers.

IMPORTANT: all our AIFOS clients have been sent a newsletter on this issue on Tuesday 25th of November. If you haven’t received yours or are unable to open the attachment please contact us. (http://www NULL.marbella-lawyers

Source: El Economista Financial Newspaper (http://www NULL.eleconomista NULL.html)

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