MF H1 accounts were finally filed after the Markets closed on Friday.

Some Key Facts and Figures:


Net Loss of 174.8 million for first 6 months of 2008
Banks owed 5,771 million as at 30th June 2008.

Accounts are incomplete and do not meet the Spanish Regulations

Ernst and Young, the Auditors refuse to endorse the accounts

The notes disclose, for the first time publically, that on the 4th of July 2008 just days before MF filed for protection they were notified by the Spanish Tax Authorities that they were opening a full investigation into their affairs for the fiscal years 2003 to 2006. ( It is not clear from the wording but is presumed to mean both Martinsa and Fadesa)

I am afraid to say that this COULD mean the position of MF turns out to be far worse than previously thought and ALMOST certainly means that EITHER MF will soon be declared Bankrupt OR those stuck in Limbo will be for far longer than previously thought as of course the Taxman comes first, the investigation announced APPEARS to be to the fullest extent Spanish Law allows for and as anyone who has ever been under a major tax investigation will know they take years not days to conclude.

That said IF the Investigation was launched mainly for political reasons it MAY be concluded quickly behind closed doors. ( There is good reason to think why it might have been given the claims of Fernando Martin ).


Anyone who wants copies PM me or go to the site of the Spanish Regulator where the bundle can be downloaded from.

Best Loco

Hi Carol,
Many thanks. The "Cork Route" does sound interesting - for all age groups, too.
There are cork forests also in the Sierra de Aracena Natural Park (north east Huelva province), and if you were to google keywords there are several walking holiday sites.
Regards,
Carol

The Bank of Spain have announced they are to investigate MF in relation to BG's.

I guess more importantly to those on this forum is that they have stated, in response to complaints from those that have claimed on their BG's only to be told they can't because MF have filed for creditor protection, the following which I paraphrase:

Absolute Nonsense. The Law is clear. If MF are in material breach such as failing to deliver on time they ( Those who issued the BG's/Security) are liable and have to pay out if you want to pull out and MF don't refund your payments made to date PDQ.

In other words those who have contracted but not completed though no fault of theirs but were due to complete months/years ago should be able to get ALL their money back UNLESS:

1. You signed a contract or made payments where one or more of the following apply:

A. The Contract is not actually with Fadesa
B. The Contract is the "Joe Public" Fedesa Contract used for CE but the completion clause is either missing or the blank space it contains just left blank.
C. The contract fails to mention the issuer of the security.
D. The payment receipts fail to mention the issuer of the security.

If the above rings true and you used XYZ Agents who took you to XYZ Bars and Cafes and recommend you to use XYZ Lawyers who in turn told you not to worry about these minor issues and you then went for it but since have found the agents have disappeared or just don't want to know and the lawyers have fobbed you off with verbals you PROBABLY are NOT covered and the Lawyers are probably now asking you over 1.5K to put your claim in that if you look carefully will end up being far more than 1.5K!

Bottom Line is those that find themselves in this position have instucted a lawyer that was either on the make/a fool/negligent.

2. You contracted to purchase a plot unless you used a honest lawyer ACTUALLY experienced in property development who made sure the contract T and C's made the purchase conditional and payments in advance were held in a ring fenced Client/Escrow account.

3. The Issuer of the security goes under.

Best

Loco the Lepero

Thank you Loco for the depressing but realistic assessment of the situation. I suspect 1b,c,d or certainly parts of them apply to us.

And still rising...

1 GBP = 1.2963 EUR

Just about to post the same details.............the fall of the Euro is about the only crumb of comfort for us in this sorry mess that the banks have got us all into.

Do not count your chickens, If Gordon the M---n cuts interest rates this month it will probably go the other way. It did the last time he cut the rates.

Think about the Japanese Banks!
The Origami Bank has folded...
The Sumo Bank has gone Belly up
The Bonsai Bank announced plans to cut some of its branches.
The Karaoke Bank is up for sale and will probably go for a song.
The shares in the Kamikaze bank have nose-dived...
The Samurai Bank is considering some sharp cutbacks...
There is somrthing fishy going on at the Sushi bank with the workers getting a raw deal... and finally 500 staff at the Karate Bank got the chop!

Brian

Last thing I'd do is count chickens but am certainly buying some Euros while the rate is favourable.

Do you realize it lowers the value of your investment though ?

Thats irrelevant unless your selling it.For those of us who have a mortgage to pay and have to trf funds its a godsend!!

Depends on what rate you bought at. Right now anything under 1.45 (remember those days) is a bonus.

Graham, My mum (Dutch) brings her disabled badge over when she´s here. We´ve had no problems/parking tickets.

re parking,

drove through Ayamonte yesterday at 1.15 and 5.30 and noticed lots of parking spaces. People were parking futher up to where we live to be exempt from charge. We did notice 2 of the euro parkers still trying to direct people to spaces though.
The disabled parking spaces are still there but not sure yet if you pay if using these spaces with your card, will have to ask as my Mother brings her card over and we have always used it ok before.

Sue

Yes Thanks Loco again for the info.

Perhaps Ive misunderstood this. What about people that HAVENT completed and took the agents original contract and had it assigned to them which as you know is common practice. You pay the profit to the agent up front between the price he contracted for at the beginning PLUS the difference in the price you agreed to buy at. You also recompensate him for the payments he has made to date, and take over any remaining completion payments. Then complete. In this case the agents profit is always lost if you pull out. A cost of the deal that is not recuperable.... but the bank guarantee is still valid (or was for us - we didnt pay anything without it up front).

Although we have completed, there may still be people out there who want to pull out and are prepared to take the loss of agents profit, just to be free from it. Probably the value drop of the property covers that loss, and of course one is freed up and also no completion costs, furnishing costs etc etc.

Im guessing that they could still go forward and go for a breach of contract - or use the bank g'tee. And take the loss of agents profit. Am I right, please? However I wonder how long it would take to get the thing sorted, I suspect a long time.

What concerns me personally (as an owner) is the investigation. If they want to re-value all MF assets, that means a firm coming around and valuing our properties formally.. that will be a real market value and not the "false" phased pricing set up by Fadesa. Seeing that on paper, in these troubled times will not be good for us, in property valuation terms (I feel).

However back to an earlier post - everything is hitting rock bottom (CAC40 yesterday had the biggest loss ever and the US relief package hasnt done any good - so far).. so losing property value is the same.... but at least we can use and enjoy it at the same time!

Regards
Jon