This week Polaris World returned to court with their creditors with the debt now owed to the Bank of Valencia by the Murcian constructor estimated to be around 62-million euros and around 100-million euros owed overall. According to the economic newspaper Cinco Días, the principle creditors are Caja Mediterráneo, Bancaja Group y Banco Popular.
Polaris World accepted that 15 of its companies, are in a ‘state of insolvencia’ and thus the group is seeking to initiate a period of negotiation with their creditors before entering suspension of payments. The insolvency affects four of the urbanizations, two hotels and El Oasis de Alhama commercial centre among others. The debt of the company, that also accounts for some 700 employees, approaches 100 million Euros.
In particular, the court has registered a condition of ‘bankruptcy’ for Polaris World Sports Centre, Polaris Development, Polaris World Development, Polaris World Industrial Machinery Rental, Polaris World Concrete, Polaris World Real Estate, Nicklaus Trail Golf, Valley Resort Golf, Green Property, Riquelme Property, Polaris Tower Hotel, El Oasis de Alhama Commercial Centre, Polaris Oasis City and Alhama Resort Golf. These companies have until 22nd March 2010, to negotiate new terms with their creditors.
It’s still business as usual at Polaris World; the Murcian Government have voiced their support for the complex with the owners and directors are hopeful that new terms can be negotiated to avoid further action and court appearances. Polaris World is known throughout Europe for its golf, football complex, residences and quality hotels and all that can be done shall be, according to the directors and management.