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The Spanish Lawyer Online

Spanish Law Tribune

Keeping up-to-date with Spanish Law


Archive for January, 2009

Fortuna Land Case Video Update

January 27th, 2009

We have today published the first of a series of video blogs on the Fortuna Land Case (http://www NULL.marbella-lawyers which we wish to alternate with written information as the case develops. We think it’s a good idea so that anyone who did not have the opportunity to be in the conference we held in Ireland could see what we look like.

Our aim with this flow of information is to help keep clients updated, the case alive and also give anyone the opportunity to comment on each appearance or publication in respect of the updates.



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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.

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The Fortuna Land Case Recommended Course of Action

January 18th, 2009

It seems that the Operacion Fuentespino, the name given by the National Police in Spain to the Fortuna Land case (http://www NULL.marbella-lawyers,  is gathering pace as a significant (although small in comparison with the real figures) number of people who invested in the scheme have decided to group to press charges against the perpetrators.

When approached for advice in respect of how to go about filing I cannot stress enough the importance of coming up with a solid, well-presented and well-argued suit so that there are few options for the defendants’ legal team to stall the proceedings in favour of a more lenient and slow civil case.

This means that a “denuncia” per se, whilst it is a way to inform the authorities that an offence has been commited, does not make the claimant part of the procedure and therefore he will not be entitled to argue the case, counter-argue, propose measures in respect of the suspects (even their freedom), their assets or those of third parties who have somehow taken ownership (for example, Finca Cazadores, now in the hands of a company and an individual), appeal Court decisions, request information from bank accounts in Spain or abroad, propose interrogations or testimony depositions etc.

Whether we like it or not, the above case by-and-large affects foreigners (perpetrators and victims), originated in a little known investment concept in Spain, the land banking business (except for property developers) and would be widely considered as a white-collar crime in most jurisdictions. This is why it is viewed in Spain as anecdotical and would not make it to the headlines, unless of course victims grouped and acted promptly because a slack response is, in my opinion, no response at all.

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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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