betris

I dont see why you are all panicing.the lecci will be on and proberly the banks will take over the admin of MF.I have seen this before maney years ago the firm went bust and the bank took over and nothing changed exept the banks controled there investments.I do hope this will be the case for you.dont forget you arnt talking a few hundred grand.you are talking near a few hundred million so I cant see any one writing that amount off

Yorkshire Scratcher

Going....going....not quite gonehttp://in.reuters.com/article/rbssFi...48990720080714

Fortaleza

If a company owes so much money - and €5.1bn is quite a bit - surely going into administration is a logical step. Interest payments alone are crippling.

MF has assets worth in excess of what they owe. You will all be absolutely fine.

The real victims will be the staff (and the banks who will undoubtedly not get everything back)

EsuriJohn

The panic is because of the unknowns!

In a perfect world every buyer would have in their file a Bank Guarantee and the deposit money would have been paid into an escrow account only to be expended against the costs of their particular house. I never saw any of this! In their statement Fades do not mention the poor bloody punter no he is just lumped in with the "creditors" probably at the bottom of the list.

"Filing for voluntary administration is the best way to avoid aggravating a crisis situation that could become irreversible and have serious repercussions on creditors and all shareholders' interests," the company said in a regulatory filing.

The company added in a statement that it would focus on selling assets to repay creditors, which include Caja Madrid, La Caixa, Ahorro Corporacion and Morgan Stanley.

"The company, along its administrators, will from now on focus in revenue-generating -- through the sale of assets and land management -- and restructuring the company so the project can be revived."

Now will the company focus on selling completed assets to those who have already paid 50% or will it ditch them and go for a new customer to bring in extra monies. Any way this statement probably does not refer to the individual houses but whole projects or parts of its land bank.

With new owners who knows what the plan will be, it may be better dealing with the devil we know than the unknown that we don't.

This scale of things has not been seen in Spain before it is a €5000 million disaster coming on top of the worlds most rapidly developing credit crunch and the price of oil spiralling ever upwards.

Dantill

No we didnt as we hadnt instructed a builder. We have been waiting for over 2 years for electricity.

CAROL ELIZABETH

Not sure those of us with apartments have a bank guarantee either! Tried phoning Moron Pendas this morning and the line appears to be dead. Anyone locally know what is happening?

Fortaleza

Not dead - incredibly busy with panickers

Brizey

WARSAW, July 15 (Reuters) - Polish builder Polnord PNOR.WA may buy out ailing Spanish property group Martinsa Fadesa (MFAD.MC: Quote, Profile, Research) from a Polish venture, estimating the value of its 51 percent stake at up to $112.8 million, a newspaper reported on Tuesday.

Trade in Martinsa stock was suspended on Monday at a historic low after the group said it would file for administration after failing to raise funds and meet debt payments, adding it would sell assets to repay creditors.

"The company (Polnord) has big money resources; of course there is no possibility of a share issue for such a cause," Chief Executive Wojciech Ciuzynski told the Parkiet daily.

"Let me stress once more, we are very interested in buying out the stake from the Spanish partner."

Polnord holds the remaining 49-percent stake in the construction joint venture. (Reporting by Adrian Krajewski; Editing by Louise Ireland)

FURTHER NEWS - relates to joint venture only
Polnord prepares to buy out of troubled Fadesa15th July 2008
Property developer Polnord is waiting for an offer from its troubled Spanish partner Fadesa for the purchase of a 51 percent stake in Polish constructing residential projects in Warsaw


Property developer Polnord is waiting for an offer from its troubled Spanish partner Fadesa for the purchase of a 51 percent stake in the Polish joint-venture constructing residential projects in Warsaw. "Fadesa's problems will not influence Polnord," said Wojciech Ciurzyński, president of the Polish developer, which holds 49 percent of shares in the venture.

Fadesa has euro 4 billion of debts and on Friday it was refused a euro 150 million loan, while the Spanish press speculates that it might soon commence bankruptcy proceedings and thus might start disposing of its assets.

The partnership agreement gives Polnord the pre-emptive right to purchase Fadesa's stake. "If Fadesa decides to dispose of its stake we will be interested in buying it," said Ciurzyński. He went on to say that his company would not have problems with raising necessary funds to carry out the purchase and estimates that the Polnord-Fadesa venture is worth zł.200-250 million.

EsuriJohn

I have just heard that the situation in Spain is somewhat different from UK.

When the administrator is appointed he will advertise the fact in the newspapers and ask all those who have put down their deposits to complete within 28 days. For most of those people the only outstanding items will be LFO's and mains electricity supplies.

On the first item it would appear that the Ayuntamiento are prepared to issue "provisional" LFO's since they are happy that the plot/house is complete and that the electricity supply is definitely in the hands of Endesa and that Fadesa are no longer involved and are not the cause of the hold up. I don't know but if Spain is similar to UK as the monopoly supplier Endesa may have a statutory duty to supply electricity and it is just a case of when.

In the whole of this bog-up Endesa have a lot to answer for if you think that there are thousands of plots and houses where completion has not taken place because the leccy was not there hence no LFO.

If the average outstanding balance was only €50,000 and there are say 2000 units (1000/plots and 1000/houses/apartments) then that would have been €100 million towards the €150 million shortfall that has caused this disaster. It seems to me Fadesa could not organise a p**s up in a brewery if they could not have worked out that electricity was the critical path and driven Endesa hard from day one to make sure supply kept up with their completion schedule.

Fortaleza

And so it begins.....

The builders and snagging lads have now been laid off and the after sales are just waiting to be told what is happening to them.

Dantill

Yes we have been trying since Friday and not successful. A statement via email would have been reassuring.

Fortaleza

Just spoke to them - they are absolutely mobbed with panickers.

The basic gist of things is there's really nothing to be worried about. You will have electric, you will not lose your money - in fact things will carry on as normal and you probably won't even notice the difference.

EsuriJohn

Hi Dantill,

Just so you know all development in Spain has by Law to be covered by Bank Guarantees and all private contract payments should be made into an escrow account.

We were told by our solicitor that a BG would be put on our plot within 3 months of signing the PC but of course I did not know the Law or the importance of that. I never saw it nor do I know if it existed. That time is now passed for me but I still wait for Endesa to get their digits out.

You are better placed than me there are lots of villas being developed on your road and it would seem financial sense for Endesa to make you all live just for the income they would get.

Me I am lone and solitary not even close enough to have an overhead supply like the bloke on the corner took from the mess tent. I am at the mercy of Endesa.

Regards,

John.

GerryW

Agreed - I think we mentioned this fact many moons ago. Bad management - and water under the bridge. Now its down to salavaging what we can.

http://www.iht.com/articles/ap/2008/...eal-Estate.php

Fortaleza

I have spoken to a contact in Fadesa in Madrid and here's a summary:

When it became clear that the government were not going to step in and help (a la Northern Rock; FreddieMac etc...) they took the business decision to go into VOLUNTARY administration.

The Centro Comercial is full steam ahead - deposits paid are not even held by Fadesa, they are held by the Junta.

Properties yet to complete - ACCORDING TO THIS CONTACT, AND MAYBE NOT THE OFFICIAL LINE (because that is not their department) - will not lose their deposits at all. Esuri is an asset and they do not want it devalued in any way hence it will be completed. Should point out as well that as far as I'm aware, Fadesa have completed pretty much what they had to. There are sections which were sold en bloc to other developers - and that, for me, would be a worry, because if said developer were to go under, I doubt they would have the resources to salvage the situation.

In short, according to the contact, the suspension de pagos voluntario is a way to restructure without the crippling debt dragging them down.

BTW spare a thought for this contact as they do not know whether they have a job to come back to tomorrow.