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Posts Tagged ‘polaris world problems’

Polaris World Avoids Falling Into Insolvency

April 23rd, 2010

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.html)

Property, Uncategorized , , , , , , , , , ,

Is Polaris World Running Out of Time?

April 14th, 2010

Polaris World. We’ve all watched the TV ads with renowned golfer Jack Nicklaus selling us an affordable dream lifestyle under the sun surrounded by beautiful golf courses just a short drive away from the beach.

Unfortunately the dream may turn into a nightmare for many would-be off-plan buyers as Polaris World is now on the verge of filing for Insolvency within the next week. The events which have lead to this situation can be summarised as follows:

  • On the 22nd December 2009 Polaris World filed before Murcia’s Company Court number two a proposal to reach an agreement with its creditors within three months thus avoiding filing for Creditor Protection.
  • On the 22nd of March 2010 it requested an additional -and final- extension of 30 days which was granted by the court.
  • This extension ends in 8 day’s time, on the 22nd of April 2010.

If Polaris World fails to refinance its whole debt within the next week it will be forced to file for receivership in what would become one of Spain’s largest insolvency proceedings do date.

The positive note is that out of the €985 million (870 million pounds) in debt that it needed to renegotiate so as to remain afloat it has already successfully negotiated over €900 million over the last three months. Within the next 8 days Polaris World legal representatives will lead a frantic race against time to strike a deal on the last hour on the pending €85 million.

The stakes are high and the pressure must be almost unbearable for all those involved.

Taking in perspective what’s already been achieved by the negotiators, I believe the €85 million seems a feasible goal.

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

Litigation, Property , , , , , , , , , ,