Bank Guarantees

Has anyone else from the Medina Golf complex received a letter from Senor Lino with regards to Nadasol and Bank Guarantees? Apart from the complex being delayed until September now (1 year after the contractual deadline), the letter states the following:

"Nadasol have also stated that they will be in touch with all clients again shortly in order to renew or extend the bank guarantees on the monies you have already deposited with them. According to the list of Nadalsols' creditors (which has just bee released), they owe a substantial sum of money to the insurance company that issued the bank guarantees, this makes us doubt very much that this company will be willing to renew or extend the original bank guarantees"

Have I understood this correctly - our deposits are potentially at risk if the bank (Zurich) decides not to renew or extend the BGs?

As far as I understand the bank guarantees do not need to be extended as the current ones are valid until completion of the property. I have both read this on other forums and legal advise websites, plus Peninusla issued a letter in September 2008 stating: " We would like to remind clients that their bank guarantees cover all amounts that they have paid to the developer so far and will do so right up until completion, so at no point are their funds at risk". - This seems to contradict the latest letter above.

Have I misunderstood something, or is this a nonsense letter? Does Nadasols' situation mean our deposits are truly at risk, or are they trying to scare us into not lawfully calming our deposits back? 

Yours,

Very

annoyed_in_spain

We have contracted to purchase a development called Granada Greens.

The developer has so far not produced a guarantee for our deposit and wants us to change to a development that does have a guarantee in place

They refuse to give us our deposit back on the basis that they will build Granada Greens at some time in the future.

I think they have no intention of doing so.

Peninsula are a load of rogues in my opinion if they had any credibility at all they would refund depositors who are clearly not going to get the development they chose over 2 years ago.

Bill