Polaris World in talks with creditors

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This topic contains 7 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 7 years, 5 months ago.

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  • #55048
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    for those interested in polaris world:

    The large property developer wants to exchange debt for some of its assets

    The Murcia newspaper, La Verdad, reports today that the Polaris World property developer based in the region, is in talks to reduce its debt by handing over some of its property assets to the banks it is in debt to.

    The company is reported to have taken on loans totalling nearly 900 million € over recent years and is reported to now be offering both land and housing to the banks.

    The newspaper reports that if the talks are successful the company could clear its debt to leave it in a good position for the future. The main banks concerned are Bancaja, CAM, Banco Popular, Banco de Valencia and Cajamurcia.

    Given the collapse in the British market for homes in the region, Polaris World has recently concentrated its promotions on the Spanish market.

    article: http://www.typicallyspanish.com/news/publish/article_21733.shtml

  • #92558
    Profile photo of Anonymous
    Anonymous
    Participant

    If Polaris World owes the bank nearly a billion euros, then its the bank thats in trouble, not Polaris World!!!

  • #92560
    Profile photo of Anonymous
    Anonymous
    Participant

    jvmills

    yes, I would have thought so. At current REAL property values, heaven knows how many properties PW would have to hand over to clear that size debt?

  • #92561
    Profile photo of Anonymous
    Anonymous
    Participant

    Well a rough calculation

    Say they owe 900 Million and (big leap..) the avg property value is 200k (and thats what the bank would give them)

    900 Million divide by 200,000 = 4,500 units

    Ha ha mad numbers eh?

  • #92562
    Profile photo of Anonymous
    Anonymous
    Participant

    quite. Doesn’t add up does it? I very much doubt PW would even own assets outright that could be handed over to pay that debt off, so probably a stalemate situation? Aifos probably in similar situation?

  • #92563
    Profile photo of Anonymous
    Anonymous
    Participant

    ooh you said the A word

  • #92564
    Profile photo of Anonymous
    Anonymous
    Participant

    …….more a C word or an F word I think!

  • #92598
    Profile photo of Anonymous
    Anonymous
    Participant

    @jvmills wrote:

    Well a rough calculation

    Say they owe 900 Million and (big leap..) the avg property value is 200k (and thats what the bank would give them)

    900 Million divide by 200,000 = 4,500 units

    Ha ha mad numbers eh?

    I think you are missing the point slightly, obviously Polaris are in a great deal of trouble and been allowed to continue far too long, its not just about units of property, its about land and other assets, eg golf courses etc. Obviously they are imparred assets now since land values etc have often taken a knock (look at La Manga club which is struggling to be valued at 100m by its auditors based on circa 5m of losses last year), that said to sum it in terms of units is overstating the number of units Polaris needs to shift.

    In terms of ‘the bank’ being in trouble, its obvious the structuring of the debts is amongst many banks and a certain amount of the debt will be cleared or swapped for assets.

    That said I cannot see how Polaris can continue, of course it could never continue as it ‘was’, the end had to come one day unless it diversified or wound down slowely.

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