Hi,
I have just received the below reply from the Judicial Administrators and as you can see we have still a long way to go, the outstanding lawsuites are going to take until approx. 2013 ??
She then goes on to describe the two alternatives, so we may be talking about 2014...2015....who knows ??
The Spanish Act on Insolvency (LeyConcursal ) allows that a company which has been declared bankrupthas two alternatives (generally speaking): if the company is feasible,a convenio de acreedores (agreement with creditors) may be presented,in such terms that the debt is paid within a maximum period of 5 yearsfrom the aproval of the agreement and with a maximum reduction of the 50%of each ordinary credit.
Acceptance of the agreement by a majorityof creditors and its ratification by the court will allow the terminationof the judicial administration and that the debts are paid according tothe terms of said agreement.
On the other hand, if no proposal ofagreement with creditors is presented, or the one presented is not acceptedby a sufficient number of creditors, the judicial administrators wouldbecome liquidators of the company.
In any case, a convenio de acreedorescannot be initiated until the common phase of the procedure is finished.In this moment, however, this phase is far from being terminated. Althoughwe cannot determine at this stage when this will happen, it may be delayeduntil 2013, as the court must resolve every lawsuit presented against theprovisional report of the judicial administators, and this may take upto approx. 2 years.
Looking back to 2004, when we paid our money and decided to buy our retirement home in Spain, we never realized what a catastrophe it would turn out to be.
This message was last edited by belucky358 on 27/07/2011.