The Spanish developer Nozar has been forced into administration proceedings by a creditor, reports the Spanish press. This is a step in Spanish commercial law that can lead to administration and bankruptcy.
A commercial court in Madrid today accepted a request, made by one of the company’s creditors (Avalatransa) in November, to start administration proceedings against Nozar.
The judge said that documents produced by Avalatransa show there is evidence of possible insolvency at Nozar.
Nozar now has 5 days to prove that it is not insolvent and can pay its creditors. In a press release the court has stressed that the decision to accept the administration request by Avalatransa does not mean that Nozar has been declared insolvent.
This is the second time that the company Avalatransa has tried to force Nozar into administration for not paying its debts. A previous request, in March last year, was rejected by the courts.
As one of Spain’s largest developers, Nozar has promotions in regions popular with foreign holiday-home buyers, such as Andalucia, Catalonia, and The Valencian Community. Nozar developments include ‘El Mirador del Mediterráneo’, comprised of 180 apartments with sea views in Benidorm, and 500 flats and penthouses close to the beach in Alicante.
Nozar, controlled by the Nozaleda family, is reported to have debts of around 4 billion Euros, which would make it the second largest bankruptcy in Spanish history, after fellow developer Martinsa-Fadesa.
The Nozaleda family have released a statement saying they have not received any official notification of the decision to start bankruptcy proceedings against their company, reports El Pais.