The notorious Spanish developer Aifos has been forced to seek protection from its creditors, the Spanish press reports today. This is the first step of proceedings that often lead to bankruptcy and liquidation.
With debts of around 1 billion Euros and 2,000 creditors, Aifos has gone into voluntary administration with some 5,000 requests for payment hanging over it, reports the Spanish news website eleconomista.es.
Aifos claims it has taken this step to “guarantee the construction of 3,000 homes committed to clients and delivery in the shortest time possible.” Companies like Aifos usually say something along these lines at this stage, but it is just waffle.
“Court administration will enable the group to restructure its debt to cope with the real estate crisis, as well as guarantee the continued activity of the company, the honouring of contracts with others, and safeguarding the jobs of its workers,” goes the Aifos statement. No doubt this pious statement made the Aifos management good about themselves. Aifos’s owners and top management have been implicated in corruption scandals and are infamous for their business practices.