Last week the insolvency administrators of Aifos, the third largest real estate developers, after Tremon and Martinsa-Fadesa, involved in insolvency proceedings, published a report that is another setback for persons already facing a desperate situation, after having invested their savings in the well-known Malaga company.
Friday, 19 February 2010: a grey, rainy day full of bad news for many desperate buyers who now realise that Aifos’ voluntary insolvency proceedings are not simply the subject matter of another press note or of more statistics issued by Mercantile Court No. 1 of Malaga, overwhelmed by thousands of documents it has received since the month of July 2009 from all parties involved in “massive” proceedings that affect not only buyers of apartments but also AIFOS suppliers and workers.
The press note issued by the company last summer in July to announce that it had filed for voluntary insolvency proceedings, assuring that this would “allow the company to restructure its debts in order to face the real estate crisis and guarantee survival of its activities, to fulfil its contracts with third parties and maintain its personnel”, now seems far away.
Dozens of law firms in the province of Malaga and in other parts of Spain are currently trying to now to safeguard the interests of individuals who invested in Aifos. Miguel Díaz Puche, a Malaga lawyer specialised in insolvency proceedings, Director of Díaz Puche Abogados and legal counsel for affected buyers in the Aifos proceedings, stated that publication of the report of the insolvency administrators of Aifos Arquitectura y Promociones Inmobiliarias S.A. has revealed that buyers who had paid sums of money on account for their apartments have been adversely affected in respect to creditor acknowledgement and classification. He insisted that said classification could lead, like in other cases, to a loss of rights and amounts paid, since it seems unlikely that an agreement would be reached amongst all creditors. If the company is wound up, which is most probable, the rights of secured creditors will be attended to in detriment of those of non-secured individual buyers, whose rights have been devalued and who seem to have been left to their fate by the insolvency administrators.
Miguel Díaz Puche added that “our mission is to warn all affected persons who may not be aware of what the insolvency administrators have done and of the disastrous consequences that may have for them.”
The developments that Aifos had underway in Andalusia are the following:
AIFOS TERRAZA TORREBLANCA FUENGIROLA
AIFOS TERRAZAS RENACIMIENTO JAEN
AIFOS VILLANUEVA ROSARIO
AIFOS LAS CABALLERIZAS MIJAS
AIFOS HACIENDA CASARES
AIFOS BALCONES DE TORROX
AIFOS CALA DEL SOL SAN FERNANDO
AIFOS PUERTO SOL ROQUETAS DE MAR
AIFOS LAS BRISAS BENALMADENA
In the next few days, the Mercantile Court No. 1 will once again receive numerous visits of lawyers and urgent submissions in what may be the last desperate attempt on the part of individuals who once dreamed of “an apartment in Southern Spain”, and which is now their worst nightmare.
Legal Department Díaz Puche Abogados
Contact for affected buyers: