After spending years in administration unable to cope with its debts, the Spanish developer Martinsa-Fadesa is finally being wound up by its creditors. Many foreign investors might have lost a chunk of their savings along the way.
Martinsa-Fadesa’s main bank creditors – Sareb, Caixabank, Popular and Abanca, have decided to reject the latest last-ditch proposal by the Martinsa-Fadesa management to keep the company afloat.
The proposal offered the creditors debt cancellation in return for the company’s least attractive assets, such as land with almost no value. Instead the creditors have decided to liquidate the company and get their hands on assets worth around €980 million.
“It has been a great blow after our long fight to avoid liquidation,” a company source told the Spanish financial daily Cinco Dias.
The local press reports that the Martinsa Fadesa liquidation process will be largest ever in Spanish history.
Spanish developer Martinsa, lead by Fernando Martín, bought Fadesa from Manuel Jové at the peak of the boom in 2007 for just over €4 billion, largely using borrowed money. When the property market froze up it didn’t take long for Martinsa-Fadesa to hit the ropes, seeking protection from its creditors in 2008.
Fadesa had numerous developments underway on the Spanish coast, such as Costa Esuri in Ayamonte, meaning that hundreds of off-plan investors from the UK and other European countries were dragged into this mess. Many of them have probably never have seen anything in return for their off-plan payments.
SteveG says:
So, for those ordinary creditors who, ( in good faith on the understanding that their money was protected) paid deposits on properties, where is the consumer protection that should now kick in automatically? Nowhere!
Shame on Martinsa Fadesa, shame on the banks who took the deposits without issuing guarantees and the central bank for not enforcing the regulations, shame on the third world legal system that is Spanish law, shame on Spain and its government.
It,’s like the wild west, but without anyone having any of the moral compass that existed, even then.
Ollie says:
Hi StevieG
Did you yourself invest in one of these off plan developments by Martinsa Fadesa. If you lost out there may be hope for some investors to try to claim some of their deposits back. I myself lost out to another Spanish developer in Estepona. I live in N.Ireland and a financial adviser encouraged me to remortgage my home to buy a property in Spain. The company in the Uk who were selling the development was called Ocean view properties. I was able to make a claim using a company called The Mortgage claims bureau from Littlehampton in West Sussex and 9 Months after submitting my evidence in Jan 14, that I had received bad financial advise to buy – I got a 70k payout from the FSCS ( Financial services compensation scheme) . Since that many other OVP investors have had compensation and it look like there may be a chance for those who used savings to invest or loans or pensions to claim as well . I’m sure there are many Martinsa Fadesa investors out there who don’t even realise they could make a claim too. You should go to the Mortgage Claims bureau website and you ll see for yourself- http://www.themortgageclaimsbureau.co.uk . Let me know if you want any more info as I know what it’s like to have been conned out of my hard earned money.
Phillip says:
Ollie you are spamming. No one has had their money back. Go get a proper job.
Ollie says:
Hi Philip
Sorry, but i am certainly not spamming as you put it. If you want proof that i along with a number of othe people have got money back through the FSCS , ring the Mortgage Claims Bureau yourself.
If you received bad financial advice by a regulated body in the UK in buying your foreign property even if it was built then you may have a chance to get some or all of your original deposit back.
At the end of the day its up to yourself. Its no win no fee , so costs you nothing up front – i myself after so many disappointments was very sceptical at the start but its worked out so im only spreading my good news to others who may be in the same position as me.
Its up to everyone to decide for themselves what they want to do.
Maybe in your next post youll be thanking me rather than dismissing me. I totally undestand your scepticism though!
Regards
Ollie
DAVID O SHEA says:
Hi
can anyone help<'
i am trying to sell an apartment with incredible sea views – this is because the plot opposite is empty.
is there a law that states Nobody can construct a buillding 300 metres from the sea?
shak says:
There maybe a law buit it is meaning less in Spain.
shak says:
There maybe a law but it is meaning less in Spain.