Jesús Ger Starts Building Homes Again in Marina d’Or

24 May 2018 – Expansión

New homes are being built again in one of the major symbols of urban development along the Spanish coast: Marina d’Or. The developer and owner of a large proportion of the popular resort town of Oropesa (Castellón), Jesús Ger, has launched his first housing development, after more than a decade of paralysis due to the real estate crisis.

The new residential block will have 11 storeys and will house 286 apartments on one of the last remaining unbuilt plots on the beachfront of the tourist complex.

Nevertheless, the return to real estate activity has not materialised through the companies traditionally linked to Marina d’Or, but instead is being carried out by Inseryal, the property developer whose sole administrator is Sandra Rodrigues, the wife of Jesús Ger.

Inseryal has already started off-plan marketing of the homes in the so-called Edificio Miramar. The apartments, all of which are going to have two bedrooms in theory, will go on sale for upwards of €129,000 plus VAT. At those asking prices, the new block should generate revenues of at least €37 million for the property developer, which expects to complete this project in June 2020.

The first development in Marina d’Or since the crisis comes at the same time as the completion of the bankruptcy proceedings of Comervi, Ger’s main real estate company, which approved its creditors’ agreement a few weeks ago. The group became one of the most famous developers of holiday homes in Spain, with turnover of €345 million in 2007. Despite the debt, Ger has withstood the lean times thanks to the other branch of his business, tourist accommodation.

Original story: Expansión (by A.C.A.)

Translation: Carmel Drake

InTempo Case: Judge Ratifies Sareb As Privileged Creditor

16 February 2017 – Diario Información

The ruling dismisses claims made by companies and individuals in the bankruptcy of Olga Urbana, by stating that the bad bank was not responsible for administering the company.

“The engagement of Suasor was justified by the circumstances of the construction work” and “there is no evidence” that that company, Abanca or Sareb acted as de facto administrators. The judge of Commercial Court number 1 in Alicante has dismissed three claims, made by companies and professionals that participated in the construction of the InTempo building in Benidorm, and has rejected the possibility of revoking Sareb’s status as a privileged creditor. This decision, which according to sources close to proceedings could still be appealed, opens the way for the so-called bad bank to end up being awarded ownership of the tallest skyscraper in the tourist city. Construction of the skyscraper is currently suspended, pending resolution of the liquidation process in which its developer, the company, Olga Urbana, is immersed.

The ruling, to which this newspaper had access yesterday, is uncompromising given that it does not reflect the claims of the minority creditors. By contrast, it attributes the exhaustive control exerted by the financial entities involved, Abanca – formerly Caixa Galicia – and Sareb – which inherited the loan due to a legal mandate to free Abanca from its toxic assets – through Suasor, to the situation in which the construction of this concrete giant found itself, which meant that engaging an external company to control and verify how the project was being managed was completely “justified”. (…).

Background

The incidental claims that the judge has now dismissed were filed by Kono Estructuras, a company that participated in the construction work and which is represented in the creditors’ bankruptcy to claim the payment of just over €1 million; the architect Robert Pérez Guerras, who also demanded the payment of a debt amounting to €133,019 for fees that he failed to receive when he left the Project Management team; and Isidro Bononat. All of them challenged the list of creditors prepared by the bankruptcy administrator, on the basis that Sareb, which is claiming the payment of just over €108 million, should not be accorded the status of privileged credit, but rather should rank as a subordinated creditor, given that it served as a de facto administrator of Olga Urbana and therefore, should assume some of the responsibility for its bankruptcy. (…).

The ruling from Commercial Court number 1 is clear. It states that the engagement of an external supervisor is “normal” in high-profile developments, such as the case of InTempo and that, in this case, Suasor limited its scope to controlling the progress of the construction work, and did not interfere the internal operations of the construction company.

Progress towards liquidation

This ruling represents another step forward in the InTempo liquidation process and, moreover, opens an important avenue in Sareb’s favour. The open auction to sell the building received just two bids: one for €47 million and the other for €52 million, which was ruled out because it arrived 20 days late. Both bids fell well below the appraisal value of the property, €90 million, and so Sareb, as a privileged creditor, submitted its own offer of €58.5 million, to be awarded the building. The claims paralysed that process but now that they have been resolved, all indications are that it may be reactivated.

Original story: Diario Information (by R. Pagés)

Translation: Carmel Drake

In Tempo: Bankruptcy Administrator Rules In Favour Of Sareb

17 January 2017 – El Mundo

The bankruptcy administrator of Olga Urbana, the property developer of the In Tempo skyscraper in Benidorm, whose future is being decided by the courts, is clear in its findings: neither Abanca (previously Caixa Galicia) nor Sareb (the bad bank) were administrators of the bankrupt company and therefore, neither of them were responsible for the management that led the company to suspend its payments after it accumulated debt amounting to €137 million.

In this way, the position of the bankruptcy administrator, Antonia Magdaleno, who has presented her conclusions about the In Tempo case before the Mercantile Court of Alicante, which is instructing the process, represents a lifeline for the interests of Olga Urbana’s major creditors, above all for Sareb, which is hoping to repossess the property and subsequently sell it to recover some of its debt, which amounts to around €107 million.

Magdaleno considers…that Sareb’s debt should be ranked as special privilege, which would place it at the front of the queue when it comes to receiving proceeds once the building is sold. By contrast, the small creditors, who initiated this bankruptcy proceeding, maintain that Abanca and Sareb did act as administrators of In Tempo’s developer, and therefore that their loans should be considered as subordinated, which would force them to the back of the queue when it comes to receiving any proceeds, whereby allowing the other creditors to recover their loans first.

Magdaleno reminded the Court that construction of In Tempo, the tallest residential skyscraper in Spain, was suspended in 2010 by which point Olga Urbana had used up the entire loan – amounting to €90 million – granted to it by Abanca, something which the small creditors deny. This group of creditors (the construction company Kono, Isidro Bononat – a shareholder of Olga Urbana – and the architect Roberto Pérez Guerras) say that Magdaleno’s investigations have not been independent. (…).

Sareb, which took over the loan that Abanca had previously granted to Olga Urbana, maintains its claim against the Attorney General’s office in which it accuses Olga Urbana of “alleged diversion of funds and company links between owners and administrators of the company and some of their own contractors and suppliers”. The entity calculates that €23 million was diverted.

Similarly, the bankruptcy administrator argues that the fact that Sareb requested the necessary bankruptcy of Olga Urbana “does not represent another example of the bad bank’s involvement in the administration of the business, but rather represents a standard option open to all creditors when a Board of Directors is not fulfilling its duties”. Magdaleno is categorical in this respect. “There is no proof whatsoever that allows us to conclude that first Abanca and subsequently Sareb, carried out any functions akin to those of a real company administrator”. The judge will have the final word.

Original story: El Mundo (by F.D.G.)

Translation: Carmel Drake