Trampolin Hills under unsolvency procedings

Trampolin Hills under unsolvency procedings
04 November 2009 @ 07:17

The company "Trampolin Hills Golf Resort" has been declared under insolvency proceedings by a decision passed by the Commercial Court Number Two of Murcia



The Court order indicates that the debtor "has been suspended from the exercise of the powers of administration and disposition of their assets,  being these replaced by the judicial administration”.



This company was affected in their projects over a year ago when the Municipality of Campos del Río did not approve his plan, consisting on the building of 2,500 homes and other facilities in this county.

 I wonder… who was to finance the project?

Ermita de L´abellera,Prades, Tarragona (Spain) by SantiMB at Flickr.com

Hi Maria

Just what does all this actually mean?  Has the company gone bust/called in receivers/or is it just this particular site(Trampoline Hills) affected?

Regards

Trampolin Hills Golf resort partuclarly has applied for protection befere the Judge in order to ovecome a moment of unsolvency. This can drive to a bankruptcy amd liquidation or not. It depends on many factors.

This Blog was posted by the EOS Team - Spain Real Estate News - See below for my response to the article.

Trampolin Hills developer in administration
05 November 2009 @ 13:48 

 The developer behind the Trampolin Hills Golf Resort  in the Spanish province of Murcia has been forced into bankruptcy proceedings unable to pays its debts, according to reports in the local press. Administrators have been appointed to run the company, and creditors now have a month to register their claims.

Trampolin Hills, in Campos del Río, had been struggling to survive since the market downturn and was dealt a fatal blow when the town hall refused to approve its plans to build 2,500 homes and a golf course.

Investors who bought off-plan without a bank guarantee will now at the back of the creditor queue and face potentially huge losses. The bankruptcy will add further weight to the argument that developers should offer escrow facilities or bank guarantees as standard to protect consumers and help reverse the damage that cases like this do for the image of the industry.

Trampolin Hills follows in the footsteps of Nozar, Llanera, Martinsa Fadesa, Habitat, Tremón, Aifos, Constructora Pedralbes, Edisan, Obrum, DHO and Begar, amongst others.                          Source: Global Edge

You state in your blog:

"The bankruptcy will add further weight to the argument that developers should offer escrow facilities or bank guarantees as standard to protect consumers and help reverse the damage that cases like this do for the image of the industry"

There is no argument as to whether developers or banks "SHOULD" offer Bank Guarantees.........It is the law. Any developer or bank not protecting deposits for off plan purchases in a Cuenta Especial and not issuing the corresponding Bank Guarantees are breaking Spanish Law and should be punished accordingly.

Here are the relevant clauses of LEY 57 / 1968

Primera - Garantizar la devolucion de las cantidades entregadas mas el seis por ciento de interes anual, mediante contrato de seguro otorgado con Entidad aseguradora inscrita y autorizada en el Registro de la Subdireccion General de Seguros o por aval solidario prestado por Entidad inscrita en el Registro de Bancos y Banqueros, o Caja de Ahorros, para el caso de que la construccion no se inicie o no llegue a buen fin por cualquier causa en el plazo convenido.

Segunda - Percibir las cantidades anticipadas por los adquirentes a traves de una Entidad bancaria o Caja de Ahorros, en las que habran de depositarse en cuenta especial, con separacion de cualquier otra clase de fondos pertenecientes al promotor y de las que unicamente podra disponer para las atenciones derivadas de la construccion de las viviendas. Para la apertura de estas cuentas o depositos la Entidad bancaria o Caja de Ahorros, bajo su responsabilidad, exigira la garantia a que se refiere la condicion anterior.

First - To ensure the return of the payments made plus six percent annual interest, by means of Contract of Insurance granted with an Insurance Entity inscribed and authorized in the Record of the General Sub-department of Insurers or by means of a Bank Guarantee issued by an Entity inscribed in the Record of Banks and Bankers or Savings Banks, if the construction does not commence or complete for any reason by the agreed deadline.

Second - Depositing the sums advanced by purchasers through a Bank or Savings Bank, which must be deposited in Special Account, with separation from any other funds belonging to the promoter, which may only contain funds deposited for the construction of dwellings. For the opening of these accounts or deposits the Banking institution or Savings bank, under its responsibility, will demand the guarantee to which the previous condition refers.

Kind regards

Keith

May I ask a general question here please.

To your knowledge is the developer allowed to access those funds deposited in the "Special Account" to pay off the loan to the Bank during the build process, or are these monies supposed to be ring fenced until the completion of the development/property in question?

Amounts deposited in the special account need to be used for anything related to the building of the houses, according to Law 57/68. 

Thanks Maria.

So what use is this special account to the purchaser if the developer can just gain access to it during the build process?

According to the most expert Professor on this field, banks should develop control activities as any use of the money for different uses is against this Law, whose rights are imperative and for the defence of the public order.

see ongoing discussion under thread titled

"hi, anybody had any success getting deposit refunds from builder"

Please know that not all the companies of GRUPO TAMPOLIN are under unsolvency proceedings just:

TRAMPOLIN HILLS  GOLF RESORT SL , holder of  CIF B-73345746,  addressed in Camposdel Río, c/ Barril de Arriba s/n, cp 30191, Murcia.  

ANYONE WHO HAS BOUGHT IN TRAMPOLIN HILLS , HAS UNTIL THE 2ND OF DECEMBER ,TO

SEND ALL THEIR PROOF OF PURCHASE PAPERS TO MULA TOWN HALL.

CHECK OUT   ( ASOCIACION DE AFFECTADOS TRAMPOLIN )

Anyone that has to lodge paperwork should shop around for solicitors as the cost seems to vary a lot.

Pay attention to the fact that not all the GRUPO TRAMPOLIN companies are under unsolvency status but, so far: Trampolin Hills Golf Resort SL

Hi Maria. What if the developer has used the moneys from customer buying in Trampolin Hills in other areas of his business. Will the courts be able to discover this?

It seems there is also a criminal action regarding this development.

Do you think we have a good chance of getting our money returned to us or will we be at the end of the line after the banks and suppliers.

Please see this link to the online form for EU petitions. https://www.secure.europarl.europa.eu/parliament/public/petition/secured/submit.do?language=EN

Also the article linked here:

http://www.theleader.info/article/21820/trampolin-hills-denounced-in-brussels/?send=ok#comments

We advice all Trampolin Hills buyers to fill out this form and submit your petitions, asking for a full compensation and refund of our deposits with interests, in the case our homes can not be built. Thank you.

Wishing you a HAPPY NEW YEAR!

http://bftboth.blogspot.com/

JC48:

In this case, and in every case where a Bank Guarantee was not provided and you have cancellation rights out of Law 57/68 ( delay at beginning or finishing), my best advise is to use provision 1.2 of Law 57/68 for an action against the Bank where you deposited your advanced amounts.

Hola Maria

Does the same apply if the deposits were not paid into a special account  and only into a ordinary bank account held by the builder.

Thanks

Steve

It very likely does.