Martin - Abolex hosted a meeting in Jumilla at our house.
Below are the points from the meeting as David and I understood them.
Roysrellies (James) also attended with Linda, his wife.
Martin and James if any of this is not correct please comment. I wont be offended.
This information only refers to Herrada del Tollo. San Jose Inversiones is being heard in a different court, albeit next door.
Some will have some of this info already as the meeting was last week but I hope it helps some to have a clearer view.
1.
Bank Guarantees
If you have a bank guarantee you have no need to take part in any of this administration process. Your lawyer can exercise that bank guarantee. The bank may delay but they have to pay you when your contract date expires. They then become a creditor and claim back the money from Herrada del Tollo through the administration process.
2.
Administration
The judge has granted Administration in the case of H del T. There is not therefore a case for litigation.
3.
Creditors List
H del T have placed all there creditors on the list as far as Martin could see. Those that were not there would possibly appear on the creditors list for San Jose Inversiones. The judge had not, at the time of our meeting, instructed H del T. In the papers issued by the court it states that all British creditors should be notified in English by letter, email or whatever means H del T had of communication. They should explain in this communication, the process and what information needs to be supplied to the Administrators that will be appointed by the court. Once this is done you have 30 days to register your documents with the Administrators.
Please note that some of the addresses are incorrect: In a separate email I asked Martin the question:
1. who do they contact in the first instance to make sure SJ have the correct address if they have moved.
“I would recommend people to fax / email San Jose informing them of their address.”
The creditors list will be published on the web in due course. In the same email I asked the question:
2. www.publicidadconcursal.es. One needs a password and one needs to know where to look so is this site for officials and legal people mainly?
“I don't need any password, as this is a public page.
Press "Deudores Concursados"
On the drop down menu, press on "Concurso"
Then type in "Herrada"
It’s not there yet, anyway.”
This site is in Spanish but you should be able to find your name when it is published.
The purpose of the creditors list, (as buyers we are creditors when H del T hold our deposits on a property) and the administration process is to pay all creditors back. Cash flow problems mean no build can go ahead unless something changes.
i.e a company buys the development at some future date or a cash injection.
Martin felt the creditors list would grow but as it stood at the moment it appeared H de T had enough in assets to pay their creditors but had no idea of time frame. The company will have to be audited.
We discussed this generally. It is possible that as the site has taken too long to get of the ground and with the increase in labour, material costs, licence costs etc., and the number of properties sold, due to the current market conditions, it would not be cost effective to continue at current prices. That could be a reason for H del T placing all creditors on the creditors list. This however, was purely speculative.
4.
Lawyers
It is not necessary by law to instruct a solicitor in this case because H del T have named you as a creditor. However, if you do not have representation and things change or if there is a vote on any subject your interests will not be represented and therefore will not be notified.
i.e if there was a vote required in regard to the number of creditors wishing to continue with the build. or if money was being paid out you would not have any way of being notified.
Power of Attorney is not the same as it is in the UK. It does not have the same powers but is necessary for a lawyer to act on your behalf.
The originals of your contract are required by the lawyer or administrator. You can send copies if they are notarised by a notary. I am not sure what the equivalent is in the UK.
As far as I can remember these were the main points discussed.
With regard to lawyers fees. I have had many emails asking about fees. For the record following the meeting with Martin and having discounted Antonio for logistical reasons, below is copied from an email I sent the day after the meeting. We put down Approx. 30,000 Euros. I have not asked any further questions about what this includes in the future, “should things change” because as he says there is no need rush yet. He had with him a document listing the scale of minimum fees as laid down by the Spanish Law, if I understood that correctly.
“Regarding your situation, our fees would be 1.183 to be paid in two stages: 50% when we start, 50% on completion of the administration process. This does not include Procurador (330 euros), Notary fees for the POA (in Spain, around 60 euros), which I would organize for you to sign at your desired Notary.
In any case, a said yesterday, there is no reason to rush yet.
I hope this gets things in perspective a little for all.