Why are banks not paying out ?

My lawyer has just informed me that Grupo Location have filed for bankruptcy. I was buying in Enix from them but have only lost a €3000 deposit. The news is not so good for many others I fear

 

Scampi.

The Company that we are suing is NEW MEDINA VILLA S.L. This is the developer that is/was responsible for building our Villa on Phase 1 at Los Llanos Del Peral and whose name is on our contract - not Grupo Location.

(Perhaps Grupo location was just the agent for the project!)

Our Spanish Lawyer has just confirmed that our Court case is against the developer and is still being processed through the Courts. He has no news of our developer going into bankruptcy.  However, I am not suggesting that this may be his "get out" later.  We will just have to wait and see and keep our fingers crossed.

Good Luck.

JPP

I am ignorant on the details but if you google NEW MEDINA VILLA S.L you get the Grupo location web-site.

Hi

Grupo Location is the promoter for the development, New Medina Villa is the builder/developer.
Grupo Location and NMV are the same company.
So far, NMV has submitted a request to the Courts for a suspension of all Contracts - this will avoid the late completion payments, reduction in final stage payment etc,.
It also means that if NMV repays our deposits, it will be without interest and unlikely to be the full amount.
NMV have not, as far as I can find out, filed for bankruptcy at this time.
NMV will probably file for bankruptcy in the near future.

The decision regarding the legality of the development is not due to be heard for around another 15 months.
The documents we received regarding our villa show that everything was in order. The court has to decide if the licences etc were obtained or issued legally.

Jason

This message was last edited by jason2007 on 10/4/2007.

Hi

My brother has spoken to Simon Lambert (Parador).
Lambert does not have any further information yet as he is sunning himself in Majorca.
A meeting between Parador and NMV has been scheduled for next week.
At the moment he believes the builder is applying for suspension of contracts only, and will not seek bankruptcy.
He believes that NMV intend to finish the Villas.

This is of course speculation on Lamberts part. Whatever the outcome of this meeting next week I doubt we will be told the truth.

I for one am not convinced that Aldea would represent  us properly in Litigation. They have protected NMV from the start.
I will post further information when it is available.

Jason