Alanda Homes is the latest victim of the property crash in Spain. Alanda Homes, which promotes and sells apartments around Marbella, has requested to enter a voluntary process of creditors in a Marbella court.
The drastic move comes as the Irish group MnInerney, owners of Alanda Homes, stopped funding the subsidiary as a result of negative prospects of recovery in the Spanish property market.
“The group has taken the decision not to invest more funds in its Spanish subsidiary of Alanda Homes apartment development,” McInerney said in a statement to stock exchanges in London and Dublin, where listed. “Therefore, Alanda Homes has requested the appointment of an administrator through the Spanish courts.”
If the judge accepts the request, Alanda Homes may stop payments to creditors until an agreement on debt restructuring is reached.
According to the latest data deposited with the Commercial Registry, Alanda Homes incurred losses of 9.6 million euros in 2008. At the end of the year, the company had a debt of EUR 13 million credit.
McInerney says that the net assets in its balance of Alanda Homes amounted to 4.5 billion euros. The Irish company has other subsidiaries in Spain, “which are not affected by the decision.” One is Alanda Club Marbella, which operates a resort, and another owns land in Sotogrande.