Bankruptcy Order For Developer of In Tempo Tower

17/12/2014 – 20 Minutos

The Mercantile Court nº1 in Alicante has made a bankruptcy order for developer Olga Urbana S.L., responsible for construction of the In Tempo building in Benidorm (Alicante). Spain’s bad bank, Sareb, filed for the lawsuit in November.

According to Wednesday update of the Official Gazette (Boletín Oficial del Estado, BOE), the indictment, dated December 1st, suspends the debtors’ rights for administration and decision-making, and assigns lawyer Antonia Magdaleno to the Official Receiver role. Moreover, it gives a month for creditors to submit their credit statements.

As of 31st December 2012, by court order, Sareb acquired debt of Olga Urbana from NCG Banco. The credit was granted for construction of the skyscraper, at that time 93% completed and set to be finished in March-April 2013.

Olga Urbana owes around 100 million euros to the bad bank. Seeing serious financial troubles of the developer, Sareb decided to bankrupt the firm.

As the bad bank justified, the step was taken to ensure orderly valuation of the real estate of the company, as well as its viability, and above all the viability of the In Tempo project itself.

In the view of Sareb, only making a bankruptcy order will allow better income and expense control and protection of the rights of creditors, homebuyers and providers.


Original story: 20 Minutos

Translation: AURA REE