Three months after Martinsa-Fadesa, Spain’s biggest residential developer, went into court administration unable to pay its debts, thousands of its clients are still in the dark as to what will become of their money. Many of them still don’t know if their stage payments are guaranteed, despite it being required by law.
According to the Spain’s Association of Users of Banks, Savings Banks, and Insurers (Adicae), off-plan buyers who made stage payments to Martinsa-Fadesa should have been told by now how the court will deal with each and every one of them. More than 12,000 families have their savings caught up in Martinsa-Fadesa’s bankruptcy.
Adicae also complains that the court overseeing Martinsa-Fadesa’s administration has notified the company’s creditors that they have until October 1 to register their claims, whilst buyers have been left in the dark.
When Martinsa-Fadesa went into administration before the summer it promised to let all its clients know exactly where they stood, and what solutions to expect. This has not been done, say Adicae.
Noting that building work has stopped on all Martinsa-Fadesa’s developments, Adicae says it doubts that the company will ever emerge from bankruptcy as a going concern, and advises buyers to prepare to fight to reclaim their money.
Adicae, which represents the largest number of buyers affected by Martinsa-Fadesa bankruptcy proceedings, is organising meetings around Spain in September to keep them informed of news from administration courts.
There is also a problem with 2 of the 3 court-appointed administrators, with some buyers claiming irregularities in their appointment.