Credit comunication

All creditors represented by ley 57 have comunicated their credits on time.

Insonvency administrators will do The provisional report and The provisional list of assests and debts.

We will check all credits are clasified according with The insonvency Law.

Another Verdict from the Supreme Court on favour of the buyer

4.7.13 Today we recieved another verdict from the Supreme Court. In this case First Instance and appeal´s verdicts were on favour to the buyer, and now the Supreme Court confirms the previous decisions.

F.A.Q. about Bankruptcy

How much they owe me? In general terms, whatever monies you paid on account of the property which has never been delivered, plus interests to the date of the issuing of the competitive bidding process plus the legal costs should these been ordered. The Court would calculate any legal costs if it orders the settlement and usually these amounts are higher than the monies paid. Will I get paid? It is not possible to know it at the moment. It will depend on whether sufficient assets are found during the ongoing proceedings, either current or future (as may be any tax refund pending or it may happen that any issue either increases or decreases the company’s passive assets). In order to know this, we can only carry out a follow-up of the process and to communicate the available credit. How long does the process last? It is not possible to foresee at the moment. It depends on whether there are many issues regarding the competitive bidding process. Usually it will take between 1 year and 3. Which are my options and how much it will cost me? There are three possible courses of action. 1) Not doing anything and wait for the company to formally acknowledge the amount owed. This is a very risky option since you will not be informed whether your credit has been acknowledged and you will not be aware of any emerging news concerning the proceedings. It is not likely somebody will knock on your door and hand you over the money you are owed. 2) To communicate your credit without further ado. In this way only the credit will be advised and you will receive an initial report stating that your debt has been acknowledged by the administrator of the competitive bidding process. However, if your debt were not listed or a stating a wrong amount you would have to claim it by means of “incidente concursal” assisted by a lawyer and a Court attorney. 3) To communicate your credit and be represented in the proceedings. In this way, you will form part of the proceedings and will be informed about any emerging news as well as receive an annual report concerning the progress of the competitive bidding process and any emerging news, if any, by means of electronic updates.

General information about the Insolvecy Process

As informed in our previous post , the Official Gazette has published the bankruptcy situation (insolvency process) concerning Los Lagos de Santa María and Green Hills. You need to communicate your credit within one month, which consists of the money paid on account, plus interests and legal costs calculated in accordance with the rates of the Bar Association of Málaga. There are some basic concepts you should understand in relation to this proceeding. 1) Concerning the handling of the Bankruptcy process. a) The publishing in the Official Gazette (BOE) has initiated the period of one month in order to advice your credit. The aim is to inform the Bankruptcy administrator about the money owed, the exact figure of the credit (you can see this concept below). b) After the deadline, the bankruptcy administrator will produce a provisional report listing the creditors and the complete company's assets. c) This report can be challenged by the creditors (also by the company in bankruptcy situation) by filing an petition within ten days after the report has been communicated. This procedure is called “incidente concursal”. d) The bankruptcy administrator must check all of the operations that the company has carried out over the last years, up to four years backwards. Creditors are entitled to claim any issues concerning the insolvency process should there be any interest for them that needs to be claimed. e) Once all of the claims have been settled, a definitive report on the list of creditors and the company's assets will be produced. 2) Regarding the kind of credits, All of the debts that the creditors may have prior to the competitive bidding process will be categorized as follows: a) Privileged (either general or special): Debts with Government, Social Security, workers or mortgages. b) Ordinary: Supplier debts, debts concerning customer reimbursements and others not categorized as privileged or subordinated. c) Subordinated: Interests, fines, surcharges and any debt with company related personnel, its administrators, company hubs, etc. There will be equity for each debt within the same category. And will be settled according to the aforementioned order. (That is, first go privileged and then ordinary and finally subordinated). Other debt category is called “contra la masa” which refers to the debts declared after the competitive bidding process has been announced and are paid in first place. (Including the fees of the insolvency process administrators). Debts pending to be set (because either the judicial proceedings had been initiated or a judicial procedure is pending, so the debt is not defined yet), which are called “contingentes" and once they are confirmed will be part of the ordinary, privileged or subordinated. 3) As to the outcome of the Bankruptcy process. The could end if: a) There is an agreement with the creditors that may entail a reduction of the outstanding debt and a grace period. b) Liquidation. All of the company’s assets are sold in order to pay the creditors in accordance with their categories. 4) As to the assignment of the Bankruptcy process. If there is liquidation, debt reduction or the grace period surpassed the legal limits, the Bankruptcy can be declared: a) Guilty; the administrator of the competitive bidding process points out, amongst other causes, negligence affecting solvency and being caused by the administrators. b) Fortuitous. Whenever the administrator appreciates the market circumstances which led to the bankruptcy situation. The Bankruptcy process ends when debts or all of the assets are settled.

Bankruptcy published in the Official Press (BOE)

24.6.13 Today the Bankruptcy´s decision has been published in official way. From now there is a month to comunicate the credit as refered in previous posts. Ley 57´s affected clients will recieve a mail with the options they have from now.

The Supreme Court fails again on favour of the Green Hills´s buyer

The Supreme Court has notified today a Verdict on favour of one buyer in Green Hills.(Unfortunatly 6 years later). They rectify the previous verdicts done by the Court Nr. 3 in Marbella and by the High Court (6th. section). Those verdicts against the buyers have been declared null, as MVG should have provided an apartment with the First Ocupation License in time. Now, the verdict will be comunicated to the Bankruptcy´s Administrators, to include this new debt and interests.

What will we claim for you??

If you got a Verdict on your favour, the Developer ows you: 1)The invested amount. 2) Legal Interest from the moment you paid. 3) Legal Interest + 2 points from the Verdict. 4) Legal fees if they where ordered to pay. This will increase the total money they ow you, to be recogniced into the Bankruptcy Process.

If you never got a Bank garantee...

The 57/1968 Act, (The Law that rules the money invested off-plan) says that the Bank will ask for hte Bank Garantee under his responsability. In the past this item in the Law made possible to recover the money from the Bank even with no Bank Garantee. Málaga´s High Court never decided on favour of the buyer in cases like this. Only a minority of Judges did it. Unfortunatly, the Supreme Court, ruled that this responsability only affects to the Developer, not to the Bank, so this makes this way very risky to lose the case and pay legal fees. (Verdict 25/2013 Supreme Court, Febrary 5th 2013): "Not applicable condemns the Bank..., as the obligation ordered in Law 57/1968 is to put the money into an special account (item 1.2), but the Law does not obligate them to care about if the Developer gives the Bank Garantee (to the clients)" Several lawyers in internet are searching for new cases to go against the Bank without Bank Garantee. Before starting this way please be sure to considerate the risk of losing the case and increasing your lost with Legal Fees.

If you had a Bank Garantee...

If you had a Bank Garantee you probably have recovered your money, or your are in the way to do it. Claims against Bank Garantee for the invested money are not in relation with the Bankruptcy process. If you got your money you should not be worry about this new situation. Maybe you will recieve any letter from the COurt´s administrators, because the Developer maybe did not change his records. If you recieve anything don´t hesitate to send it to us by mail.

Options after the credit is presented to the Court´s Administrators

1. Being part of the process. This option will provide us with the potential to remain on top of new procedures or changes within the process, implement future actions, to vote for an agreement and the possibility to regain part of the invested money from the bankruptcy or the administrators’ personal assets and liabilities. In all probability, this option will lead to a time consuming and at times desperate process. However, this is the only option that could lead to recuperation of the money. 2. Withdraw from the process. This option represents giving up and leads without a doubt to losing the invested money. In case of withdrawal from the process there would not be any possibility whatsoever of participating in the procedures of bankruptcy. This means that we would lose the right to defend your credit in any of the future phases of process. At the same time, we are aware of the present overall economic status and the fact that this concrete issue might complicate the situation. This is exactly the reason why we have established equal fees which in any case are reduced to a minimum. In addition, these fees do not only include the procedures we undertake within this bankruptcy case but also those of other areas such as penalty law.

Marbella Vista Golf and Lagos de Santa María. Bankruptcy process

We inform you that the Mercantile Court of Granada number 1 ordered (by means of Auto) the bankruptcy situation of the company MARBELLA VISTA GOLF, S.L and LOS LAGOS DE SANTA MARÍA S.L. on the 10th of May of 2013 in relation to the competitive bidding process with reference number 204/13 which has been initiated and its administrators assigned as follows: - LOPEZ Y GARCÍA DE LA SERRANA ABOGADOS, S.L.P. which in turn has designated Mr. Javier López y García de la Serrana. - José María Muñoz Jiménez. Once the position has been accepted by both of them and the appropriate procedures in accordance to Law have been initiated, we are writing you herewith in order to inform you that within one month as from the issuing of this present process (bankruptcy situation proceedings) in the Official Gazette (BOE), ley 57´s Lawyers will communicate directly with its Administration, as established by the Court order concerning the declaration of the bankruptcy situation and we will inform them about your creditor’s position, the owed amount (the credit), its concept, dates of acquisition of the credit and payment due date as well as any other particular and its qualification that we will intend to pursue. The Official Gazette (BOE) has not published the Bankruptcy. In this blog you will se all relevant news from now. Most of the questions will be answered here. If you want to contact by email do it preferably to the following email address: carlos@ley57.com We remind you that you are not allowed to inform directly the Court about your credit as this would not be in accordance with the Insolvency Act (Ley Concursal). You can see here to read the Auto wiht the Bankruptcy declaration.