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Today we can read that Polaris has admited a lack of cash liquidity so they admit that they will have a 3 month period in order to save the company:
Finally the moment seems to have arrived to Polaris but I am surprised that they have survived for so long.
If they file for bankruptcy them this would be a shock for the Murcia economy.
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No, last year they renegotiated loans and used assets to reduce their debts. Apparently they even improved their sales last year up to 530 million from 400odd million the year before- but this is well below the anticipated 800 millions they planned for.
Think they have held up far better than many other developers- but now their developments wont be completed as expected. Unless of course they renegotiate and hold off bankruptcy. At Condado de Alhama they have finished everything in the present phases except the Golf Club house. They have however used one of the units in the Al Kasar town centre to house a smart golf pro shop with some changing rooms and that’s adjacent to the Clover bar and also the new restaurant. So whilst its not the plush club house that was expected its not a temporary prefab either- and it adds a bit more life to the Al Kasar which needs these units taken to add a bit of zing to a large space. It explains their push to get the resort up and running- its a viable development for another developer to buy into. Or there’s the prospect of it being broken into sections, sports zone, shops, golf all with different companies over seeing them- it’ll be interesting to see what transpires.
There’s going to be gaps in their other developments too- if they cant sort their finances. I dare say builds will be put on hold and I’d be looking to transfer to property that’s already built because getting deposits back ain’t going to happen. But there could be plenty of bargains to be had although would be purchasers will no doubt be put off in the first instance-especially as its less likely that the other two golf courses will actually happen- at least in the short term, or the Oasis shopping mall. But in some respects that’s the deal with off plan purchasing anyway- no true guarentee on how a resort will look in the end and who knew what effect this recession would have?
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I thought this was one of those companies that have been caught out mis-selling properties on various occasions, and if so then they deserve to go bankrupt!
Using Jack Niclaus as their ‘face’ of advertising they were selling mass new development that is probably worth a lot less now than when bought.
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Most of the CdA ‘services’ are franchised out, Adminstration, gardening, rubbish collection, maintenance- they are not PW. The supermarket is UPPERs but has PW’s name on it. The Al Kasar shopping centre is PW’s so yes they need to be bought out but truly the whole place is up and running no half built, incomplete properties- not one. The sports facilities have apparently have Intercontinental at the helm and they are supposed to be building the golf clubhouse and a hotel (we’ll see how that pans out) not PW. The apartments unsold are all key ready and there are no skeletons of buildings on the horizon. Its actually a cracking resort and the golf course (which is only green where it has to be, the rest is desert design) and since 22nd or 23rd Dec has been used constantly- no commercial adverts yet either, just word of mouth.
PW seem to have pulled out all the stops to get this resort to a point where its viable and therefore has appeal to purchasers. PW have a lot of retail influence and local reliance so we hope they pull out of this as its important for the region.
The sorrow will be for the other resorts if people have just paid deposits on off plan properties and they are not built – thats where PW could be failing their customers.
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@peterparra wrote:
Who will buy now a property from Polaris knowing that they are on the cliff? The property would stay there for ever but who will take care of the services and community if Polaris goes bankrupt.
WELL IM ONE WHO WILL BUY, IF THEY DISCOUNT THE VILLA,S ON THE NEW MAR MENOR 2 GOLF RESORT, TO ABOUT 140K BRING IT ON.
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@skippy wrote:
@peterparra wrote:
Who will buy now a property from Polaris knowing that they are on the cliff? The property would stay there for ever but who will take care of the services and community if Polaris goes bankrupt.
WELL IM ONE WHO WILL BUY, IF THEY DISCOUNT THE VILLA,S ON THE NEW MAR MENOR 2 GOLF RESORT, TO ABOUT 140K BRING IT ON.
Offer them that figure now and they might accept.
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The 3 month period has ended.
http://www.laverdad.es/murcia/v/20100323/region/polaris-world-solicita-prorroga-20100323.html
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Polaris has 10 days left.
This is getting even more interesting day by day.
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You can read the same news in English here:
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There are conflicting stories here. Most or all of Polaris World so called asset base is already leveraged or repossessed. To sell them off now would require a market upturn. That unlikely event would benefit the banks not PW. Its hard to see the company surviving. The original marketing concept of PW belongs in another pre-recession age.
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Polaris has 3 days left. The next thursday we will see finally what happens:
http://murciaconfidencial.blogspot.com/2010/04/polaris-world-tiene-hasta-el-jueves.html
I think the volcanic ash this week should have helped a bit to the final destination of Polaris World.
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Tomorrow is the Polaris Day,
This is better that the Milan-Barcelona as the result is unknown, the last I know is that the banks are pressing Polaris World at the most we wont know until the last minute if Polaris World files for bankruptcy protection or “suspensión de pagos”.
So tomorrow everybody looking at http://www.laverdad.es (leader regional newspaper of murcia) to see what happens ❓
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@peterparra wrote:
Tomorrow is the Polaris Day
So tomorrow everybody looking at http://www.laverdad.es (leader regional newspaper of murcia) to see what happens ❓
No Peter you’re wrong. Tomorrow is the semi-finals of Britain’s Got Politics with Davey, Nicky and Nerdy all competing for a place in the final. With almost a sadistic form of voyeurism, I wouldn’t miss it for the world. But do keep us informed what happens with PW. 😀
Out of interest, can I ask what is your obvious interest in this development? Do you have a property there?
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Hi Peter
Unfortunately if PW does go to the wall, the ‘fallout’ can affect all the purchasers – one of the tragedies of this corruption-epidemic in Spain.
Whatever happens, let’s hope at least the infrastructure of this development continues to be well-maintained and not allowed to sink into neglect. -
My best guess will be another fudge and mudge giving PW yet more time to stutter on with other peoples money racking up bigger debts. Pulling the plug creates more local unemployment and the politicians with more and more awkward and embarrassing questions to answer. Like how come PW could build massive urban complex’s on rural land in the middle of intensive agriculture regions without existing infrastructure for habitation. 😕 Mmm. If that happened anywhere else but Spain searching questions would be asked and a few collars felt.
Where else can you buy huge chunks of agricultural land at agricultural values and then miraculously build an urbanisation in the middle of a rural zone and flog off property at inflated values. Nice work if you can get it.Here is some up to date news from PW forums. 4pm 22 April.
Today is D-Day for Polaris World To resolve their problems with the banks. Reports are coming in what is happening at the community centre on Mar Menor, the town centre is today being stripped of everything and anything that can be removed,this includes all catering equipment from the restaurant and bar,all gym equipment and potted plants, even the reception desk has been removed! The company that was running the paddle courts and gym will be holding a meeting tomorrow at 10:00 in the Irish bar. Anyone can attend.
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“Apparently the group have managed to raise the cash to stay liquid, have sold off assets to cover the debts of 80 million euros and the official announcements will be made today about who has got what”.
(see second item)
http://davebangor.blogspot.com/2010_04_01_archive.html -
I have written about this news in the blog
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The banking creditors are lead by local cajas (under political control). I don’t think local politicians like Valcárcel, the PP president of Murcia, want to see PW go under.
The top navigation bar with links to the main sections like the blog should be back in place early next week (I have serious problems with this upgrade taking so long).
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@katy wrote:
Just read the blog. The banks must be crazy, or it’s a political decision.
I agree. It has nothing to do with market economics and everything to do with paternalism and cronyism between banks, politicians and developers. That dear friends is how Spain is run. 🙁
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peterparra “My interest is that I feel happy when a company related to corrupt polictics goes to the cliff. I hope that some people have learned from this crisis that money isnt easy and you have to work hard and honestly to achieve your dreams”
Peter, Peter, they learn from the crisis alright. What they learn is to place the company into liquidation let suppliers, customers i.e. non secured creditor’s go down the shoot etc. They than set up another business and with the same contacts and the people who had benefits from their past activities. Star filing their pockets again.
This problem can only be solved to bring very strict laws & much stricter enforcement of the law. Honest hard working men is unfortunately is the sucker in all this. This is a disease that is destroying the Country and turning young people to leave Spain.
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