- This topic has 9 replies, 4 voices, and was last updated 11 years, 9 months ago by
.
-
Posts
-
-
Interesting article today about who a spanish property developer (Martinsa Fadesa) modified some ledger account postings in order to show profits in 2007 instead of the real loses.
For example a land valued at 336.000 euros was posted at a false value of 65 million euro. A 19.000 % increase!
-
-
This is creative accountancy. The oldest book in the trade. It was the responsibility of the Auditors to have queried the valuations of the land the work in progress, finished units etc.
If this happens to be the case the shareholders & creditors should be suing the Auditors for negligence or fraud if the auditors were in cahoots.
-
-
Katy: For what its worth over/under valuation does not affect the buyer.
Generally speaking the valuation is done for the Banks for lending or for the audited accounts in order that a fair view of the company assets could be ascertained.In, my experience when a company goes down. Its for reason that they are insolvent & cannot meet their day to day financial commitment.
The, only exception that I have come across was in the 80s with the Liquidation of a bank called BCCI, where everybody was paid in addition to lawyers & Liquidators creaming off, ten of millions of Pounds.
This was a political decision and no relevance to solvency.
-
-
Katy:
If the banks have any assets the first charge holder normally the Bank will get their hands on it first i.e. they would be secured creditors. So if the bank has lent £100 on asset that was valued as £200. Than it turned out that the value was say £75, the bank as secured lender will lose out due to under valuation.When I & you buy & put down our 30%, we don’t ask for banks asset valuation & even though these valuations are historic & we are not secured creditors.
-
-
-
😳 I am involved with the martinsa fadesa case and am trying to get the el pais newspaper you quoted up in english but i am not having any luck opening it in english my spanish is very limited any advice please. we have just returned from spain lawyer says put it in the back of your head and get on with life it will take years to solve if ever. bank gaurentee useless in martinsa fadesa’s case . i am certain we english would not get away with the way the spanish treat us i thought it was a level playing field now we were in all eu. i was alarmed by the things the lawyer said about the possible outcome of this case . and i think it is wrong that the case will be heard in la carona fadesa’s local area and not in madrid were we might have got a better outcome. 🙄
-
- The forum ‘Real Estate Topics, News & Discussion’ is closed to new topics and replies.
