Spanish Law Tribune » aifos promociones

Aifos Avoids Second Forced Administration Procedure

raymundo — Fri, 27 Feb 2009 00:33:17 +0000

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 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.

Aifos’ Second Forced Administration Procedure Accepted

raymundo — Wed, 21 Jan 2009 10:23:11 +0000

Mercantile Judge number one of Málaga has accepted the second proposal for a forced administration procedure for the developer Aifos, as stated by Diario Sur.

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.

Aifos Faces Its Second Forced Administration Procedure

raymundo — Thu, 15 Jan 2009 21:33:50 +0000

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 was last November, but the Mercantile judge turned down 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

Aifos’ Creditor Petition for Administration Procedure Turned Down

lawbird — Fri, 12 Dec 2008 15:24:09 +0000

El Economista reports today 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, blog post 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…

Aifos Faces a Forced Administration Procedure

lawbird — Mon, 24 Nov 2008 08:48:55 +0000

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.

Source: El Economista Financial Newspaper