Martinsa-Fadesa bankrupt 2,531 homes on the Costa del Sol at risk

01:52 El NACHO 0 Comments

The filing for bankruptcy protection of the constructor Martinsa-Fadesa, the largest in Spanish history, leaves the construction of 2,531 homes on the Costa del Sol in the air. The company, chaired by Fernando Martín had developments planned in Manilva, faces having to pay compensation to Marbella Town Hall for the irregular construction of 1,386 homes in the town, and also owns land in Antequera for industrial and commercial use in the business park.Manilva I.U. left wing Mayor, Antonia Muñoz, told the Diario Sur newspaper that the development there was likely to be revised in any case, with the land earmarked possibly being reclassified.
Martinsa has already built a dozen developments in Guadalmina Alta in Marbella, amounting to a commercial centre and 1,386 homes in agreements signed during the GIL administration and not recognised by the Junta de Andalucía.84 apartments have also just been completed in the Nueva Calahonda urbanisation in Mijas, where 20% of the properties have been sold and the keys handed over.The collapse of the Martinsa-Fedesa company, which has filed for bankruptcy protection in the face of massive debts, has left an estimated 12,500 families fearing that their new homes will not be completed. The Government though has said that it will ensure that the company meets its obligations in such cases.
The suspension of payments in Martinsa, which now has reported total debts of more than 7 billion €, led to large falls among other builders and also banks on the Spanish stock market yesterday.
Caja Madrid, which lent the company 1 billion € said yesterday that the debt was guaranteed given the assets of the firm, where the only problem was one of liquidity.
Unions calculate that as many as 4,000 jobs are under threat. 234 workers in the firm are the first to lose their employment.
There are also press reports this morning that the Martinsa company may try and back out of the purchase of Fadesa it carried out nearly two years ago. Under the Ley Concursal, if there is a subsequent bankruptcy, the purchase can be rescinded over a following two year period, and in this case there is still two months to go.
Such a scenario would be a serious one for the founder of Fadesa, Manuel Jove, because ff the courts do decide to annul the operation, he would have to pay back the same amount of money.
Many of the Martinsa problems stem from the interest being charged on the 5 billion € loan the company took out to carry out the purchase of Fadesa 22 months ago.