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Aifos Refused Covenant & Sentenced to Liquidation

3/11/2014 – Cinco Días

Once reigning in Andalusia, Aifos has not come to an agreement with lenders and as a result the bankruptcy process it has been undergoing since 2009 will end up with liquidation.

According to the group’s president Jesus Ruiz-Casado, the sentence has arrived too soon as reports and business valuation had not been finished yet. Among the creditors one may find Aifos’s homes owners, banks, Treasury and Sareb.

The businessman tried to pull his company out of insolvency with help of Emilio Noseda, who was ready to take Aifos over and inject necessary equity if the lenders agreed for another covenant.

Founded in 1994, the firm went bankrupt with €1 billion in liabilities. It built 18.000 houses in total, employed 2.600 workers, had 53 branches in four countries and a 4.700 network of real estate agencies all over Europe. In 2005, Aifos was at the brink of going public but an affair with its executives in the main role shattered the plans. Three years later, the company joined other insolvent property managers like Tremon, Sacresa, Nozar or Llanera.

 

Original article: Cinco Días (by Alberto Ortín Ramón)

Translation: AURA REE