Polaris World struggling to repay debts says local news website in Murcia

A news website in Murcia claims that Polaris World – one of Spain’s biggest developer with a focus on holiday homes – is struggling to pay some of its debts to local government.

In an article entitled ‘Critical situation at Polaris World and its companies’ Vegamediapress.com claims that Polaris World cannot get banks to guarantee millions of Euros that it owes to municipal governments in Murcia for planning agreements.

The article reports that, amongst other debts, Polaris World still owes the town council of Torre Pacheco more than 4 million Euros for a planning agreement for the Mar Menor Golf Resort – the first Polaris World development in Murcia.

According to the article, Polaris World is looking for an extension on its debt payments, with company executives blaming a temporary lack of liquidity, rather than structural problems. The company is alleged to have offered its office buildings – already mortgaged – and the golf course at Hacienda Riquelme as collateral for an extension on its debts.

The article also claims that the company has been laying off staff, and that there is an “air of crisis” at the firm.

SPI Member Comments

Thoughts on “Polaris World struggling to repay debts says local news website in Murcia

  • polaris-world says:

    This was resolved a few months ago (Summer 2009) when Polaris World agreed a deal with five banks to acquire the remaining (600 or so) properties unsold in payment for outstanding debt. Polaris are now focussed on running the six resorts yet offering resale properties on an agency basis.

    We have seen signs of progress in recent months with the completion of the town centre at Condado de Alhama in July 2009 and the first release of off-plan property for two years with the beachfront properties at La Manga. Polaris has restructured its whole business and freed itself from debt.

    Paul Williams

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