POLARIS WORLD - BANKRUPTCY PROCEEDINGS DISSOLVED

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Polaris World. Judge officially ends bankruptcy proceedings

Polaris World news, Olagolf issue formal statement

Posted 7.37pm, Weds 28th
The Judge in commercial  court number 2 in Murcia, has today declared that the process of insolvency against 15 companies owned by the Polaris World developer has now been dissolved.
The Tribunal Superior de Justicia de Murcia made the announcement this afternoon, now that the legal processes have been completed to end the insolvency process.
The Judge confirmed that the company had presented a written request within the specified time limit stating that it had reached agreement with its ‘ creditors and arranged re-financing which would enable it to move forward with its' business activities.
The Polaris World website statement indicated that an agreement has been reached with the four main banks, Banco Popular, Banco de Valencia, Bancaja, CAMbank and a press release came out from Polaris as follows last week after the announcement of the  agreement:
Polaris World website

23 April 2010: After several months of negotiation Polaris World has today finalised a deal with its creditors (a consortium of four banks) for the clearance of its outstanding debt. The refinancing allows the company to move forward with prospective plans for further development at Terrazas de la Torre resort and Condado de Alhama. Polaris is one of the few major Spanish developers to have survived the credit crisis which started in 2007. With the increase in buyer confidence and property sales seen on the resorts in 2010, largely driven by a return of UK buyers, the news is a further positive sign for owners on the resorts.

These 2 statements would appear to indicate that the re-financing has been arranged with only these four parties, and no further releases have been issued which give details of any assets which have been sold  to clear off debts with other creditors.

Rumours have been abounding all week that the Hotel and Golf Properties had been sold to Olagolf, but a statement issued from the company today confirmed that they have taken over the management and maintenance of the three Golf Courses on behalf of the IRM Group.

IRM group , Iniciativa Resort Mediterraneo, ( Sociedad Inversiones en resorts Mediterraneos, S.L) comprises CAMbank, Cajamurcia, Cajamadrid, Banco popular and Banco de Valencia and already owns much of the land destined for the construction of Condado de Alhama 2, plus a healthy portfolio of other Polaris properties which were "purchased" by them in the re-financing deal which kept the company solvent last year and resulted in the transfer of nearly a billion euros worth of assets to IRM then.

It would now appear that the same group have "purchased" another 83 million euros worth of assets and that these courses have not in fact been sold to an outside buyer, but taken over by the IRM Group. It appears that the hotels and courses have been sold to the IRM group, but that the golf copurses are being managed by Olagolf on their behalf.

No official statement has been forthcoming from Polaris, but Olagolfs' release reads as follows

Olagolf statement

Olagolf assume the maintenance and management of golf in Murcia with an agreement made last week with the Investment Company Mediterranean Resorts, Inc. (IMR).

The golf courses to be managed by Olagolf, are the combination of Condado de Alhama, Mar Menor and Terrazas de la Torre, all located in the towns of Torre Pacheco and Alhama de Murcia. With this new agreement Olagolf is committed to providing services to develop, look after and maintain the courses  to the highest standard to create a considerable challenge and the best possible experience for players. The condition of the courses is the most important factor to ensure a good game, plus  respect for the philosophy of the  designer when creating the course. A design endorsed by the most successful golfer of all time, Nicklaus Golf Trail offers a variety of unique gameplay and the quality seal of Nicklaus Design in each of the holes.

This would appear to confirm that the management is on behalf of the IRM group, and not on behalf of any other party.

My conclusion is that no "outside" parties have come forward to buy out Polaris World assets as many people had hoped might happen as it might provide a level of competition to remaining PW facilities which might drive down the cost of PW services which in many cases are unrealistically high.

The fact that Olagolf are merely managing things on behalf of the Banks will undoubtedly mean those courses will be well maintained. I hope that they may still create a competitive environment in respect of green fees. Time will tell.

The best result from this prolonged negotiation is that the future of Terrazas looks a lot more secure as PW have survived in a form that allows Terrazas to develop. Hopefully it will quickly become a hive of activity and complete within a reasonable timeframe. 

POLARIS WORLD (LA VERDAD)

Polaris World avoids the precipice 04/23/1910 - 01:12 - J. Gizzard | MURCIA.
The company closed last night the sale of assets amounting to more than 80 million euros which will provide the necessary liquidity to weather the crisis The estate reached an agreement with banks and allowing you to avoid bankruptcy BASIC FACTS Beginnings. Established in 2001 by Pedro Garcia Meroño and Facundo Armero. Armero sold its stake in 2006. Today Meroño Garcia is the largest shareholder and its president Jose Luis Hernandez. 'Resorts'. The company has seven residential complexes: Mar Menor Golf Resort, La Torre Golf Resort, El Valle Golf Resort, Hacienda Riquelme, Condado de Alhama Golf Resort La Loma and Las Terrazas. Billing. The real estate company, hard hit by the stoppage of the sector has not provided data since the beginning of the crisis, but in his best years came to exceed 800 million euros. Template. Polaris World currently has about 700 workers, but reached over 2,000 five years ago. Subsidiaries of the group. The Polaris World group comprises thirty companies, of which fifteen are included in the declaration of insolvency: El Valle Golf Resort, Polaris World Sports Centre, Polaris Development, Hacienda Riquelme, Polaris World Development, Polaris World Industrial Machinery Hire , Concrete Polaris World, Polaris World Real Estate, Hacienda Verde, Nicklaus Golf Trail, Mar Menor Golf Hotel, La Torre Polaris Hotel, Centro Comercial El Oasis de Alhama, Polaris Oasis City and Alhama Golf Resort. The promoter and the entities signed late yesterday the sale documents It is the second time in less than a year that the developer resolve their financial problems After four months peering over the precipice of bankruptcy, Polaris World last night closed an agreement with four banks and to sell assets with which the leader in residential tourism expects to obtain the necessary liquidity to weather the deep crisis in real estate. The entities involved are CAM, Bancaja, Banco Popular and Banco de Valencia and the operation is around 83 million euros. In return, Polaris has been in the hands of those entities part of the assets it owns in homes, golf courses, land and hotels. With these funds, the developer hopes to continue with the development of their projects and regular activity (payments to suppliers and employees) until such time as the housing market recovery. Late last night both sides were signing the sale documents, but was complete and sign the agreement, the official communication is expected to take place throughout the day, according to knowledgeable sources said the operation. The four months of negotiations between Polaris and financial institutions have been an endurance test in which the company has tried, until the last second to save the largest number of assets to enable it to overcome the current housing slowdown and the best possible deal next economic recovery being faster in the UK and Germany, major overseas markets of Polaris. A complex process Because of the stagnant housing market and the consequent fall in revenues, the company headed by Jose Luis Hernandez has been forced to offer banks and liquidity for part of the assets it owns in homes, hotels and golf spread over its seven golf 'resort' located in Torre Pacheco, Murcia, Alhama. The economic valuation of these assets by both parties has been the most complex negotiation and the cause has been dilated to the last minute. In fact, last Wednesday, a day after the deadline to finalize the law granting the negotiators, representatives of Polaris and financial institutions did not rise from the table until eleven o'clock at night, according to sources close to the negotiation . The hard road that ended in agreement last night began last December 22 when Polaris introduced a notice in the Commercial Court number two in Murcia declaring insolvency fifteen of his corporations, and requesting the opening of a preconcursal process. It is a formula prior to the insolvency law allows, and which was to shield the real estate to denounce any of the defaults and creditors could force the competition. From the outset, and with the concern shown by the regional government and the opposition, the officers of the company expressed its willingness to maintain jobs. Polaris World currently has about 700 employees, a figure far removed from the roughly 2,000 that came to count on the flourishing years of boom housing. Since the declaration of insolvency and the openness of the process preconcursal, the developer, based in Torre Pacheco, opened negotiations with financial institutions to try to get the slightly more than 80 million euros to their needs ascend treasury. Four months of tug of war The law gives them three months to reach an agreement, but Polaris requested in late March to extend for another month because of the difficulty to close the deal with all entities involved. Yesterday, finally, all parties, agreed to a common document. Other companies before Polaris preconcursal also resorted to the process, but with varying success. Companies like Nozar and Ploder requested and addressed this same formula, but ended up filing bankruptcy. In the case of Polaris, insolvency affecting four of the estates of the firm (including, El Valle, Hacienda Riquelme Alhama), two hotels (Mar Menor Golf and La Torre), department store El Oasis de Alhama and the group's development division, among other businesses. The group companies included in the declaration of insolvency El Valle Golf Resort, Polaris World Sports Centre, Polaris Development, Hacienda Riquelme, Polaris World Development, Polaris World Industrial Machinery Hire, Polaris World Concrete, Polaris World Real Estate, Hacienda Verde Nicklaus Golf Trail, Mar Menor Golf Hotel, La Torre Polaris Hotel, Centro Comercial El Oasis de Alhama, Polaris Oasis City and Alhama Golf Resort. It is the second time in less than a year that the property successfully resolved its financial problems. In the autumn of last year, Polaris and wiped the bulk of its debt to banks and commitments exceeding EUR 900 million in exchange for a significant portion of its assets, mainly land. The result of this first agreement, CAM, Cajamurcia, Bancaja, CajaMadrid, Banco Popular and Banco de Valencia received 6 million square meters in Alhama, where the promoter thought to build the second phase of the Condado de Alhama. Polaris World elude el precipicio

LATEST NEWS ON POLARIS WORLD

THE LATEST FROM "SIMPLY NETWORKING" :

2010-04-23

Update Friday evening.
Astonishingly there have been no further press releases giving details of the deal, which is most unexpected. Given all the recent media coverage it would have been a good idea to allay the gossip and speculation which has been doing the rounds and confirm the details of the re-structuring deal. It's a most unexpected situation.
Interestingly, the regional sales manager for Polaris was emailing local agents with the excellent news about the company, sending links to the spanish press which said in headlines that Polaris had managed to escape bankruptcy. The links ran virtually the same text, summarising the history of the proceedings, and all had exactly the same information we have, which is virtually nothing, only that an agreement had been reached. Quite how it could be wonderful news when nobody knows what the news is, is not clear, but he did add a note geeing up the agents to keep pushing for sales.
It could perhaps be a case that the banks agreed to guarantee the funds to prevent bankruptcy proceedings and that negotiations are not yet concluded.
Or perhaps they have been concluded in an unexpected fashion and the news will be stealthily released once all the fuss has died down.
In the meantime, all we can do is wait.

Polaris World avoid bankruptcy, but at what cost?

Polaris World- Late night deal raises 80 million in cash to avoid bankruptcy

2010-04-23
We've been told that Polaris World has managed to survive in some form without being forced to declare bankruptcy in a deal which was signed late last night.
Two nights of fierce negotiations took place both on Wednesday and Thursday evenings, to try and come to an accord over the value of the assets in question, with pressure intense to conclude a deal by last night as the bankruptcy deadline expired.
Apparently the group have managed to raise the cash to stay liquid, have sold off assets to cover the debts of 80 million euros, and the official announcements will be made today about who has got what.
 Reports last night from residents on the Mar Menor development told of furniture being removed from the sports facilities, the door to the main enetrance locked, and large quantities of fixtures and fittings being carted out of the resort, including the potted plants and reception desk. Whether this was Polaris removing items for sale, or those who are owed money recovering whatever they could is still unclear, but residents spoke of the rsort being"raped".
In total, 15 of the companies' businesses were lodged as insolvent, including the El Valle Resort, Polaris World sports Centre,Polaris development, , Polaris World Industruial machinery rentals, Polaris World concrete, Polaris World Real Estate, Hacienda Verde, Nicklaus Golf Trail, Mar Menor Golf Hotel, La Torre Polaris Hotel,Centro Commercial El Oasis de Alhama, Oasis Polaris Ciudad and  Alhama Golf Resort.
During today press announcements are to be made as to which assets have been sold off and we'll keep you posted as the story comes in

POLARIS WORLD - THINGS LOOKING BLEAK - ANNOUNCEMENT FRIDAY.

I have just received the following from Simply Networking which confirms earlier reports of asset stripping at Mar Menor. It is all looking a bit sad and we appear to be facing a very uncertain future. We can only hope that whoever has bought the various resorts have a better idea of running them than our dear friends at PW.

Polaris World - Anything saleable has been carted away.

2010-04-22
Well, it looks as though the unthinkable has happened.
Silence from Polaris world on the last day of bankruptcy protection.
The promised announcement didn't come, and no details have emerged from anywhere about what's happened.
Everything has been kept behind closed doors.
Several reports have come in today that the Community Centre and Town Centre on the Mar Menor Resort have been stripped of anything which can be moved, including desks, Gym equipment, catering equipment and even the potted plants, anything that may have even a residual value has been removed.
An unusually large number of suited people have been in evidence around the hotel on the resort, fuelling expectations that the golf courses which have hotels have been sold off as had previously been anticipated.
A meeting for residents is being held at 10am in the Irish Bar, by the company who have been running the gym and paddle courts,  although whether the premises is large enough to accommodate all those who will no doubt be wanting to attend is unlikely.

Residents Committee members have been told that a full statement will be made to the press tomorrow morning to disclose the details in full of what is actually happening.
It's being said that it's a fairly complex situation, hence the fact that nothing has leaked out about whatever the deal is and the Spanish press have been absolutely mute all day.
So at the moment, that's it. The press release will come out tomorrow morning and we'll have it online as quickly as we can.

Interior Pictures of Penthouse at Las Terrazas

Thanks to Augustin for the following photos which he took when visiting his apartment at Block 291 on 31st March. Augustin says he is very happy with the finish of the apartment and is looking forward to completing the purchase when the formalities have been resolved.


The main difference I have noticed between the Penthouses and the Phase 1 apartments is that the kitchen units have a darker finish although the doors and wardrobes appear to have the same colour of wood.

There are also some exterior shots with some excellent views over the golf course.

Muchas gracias Augustin por los fotos, muy bien.

Dave

Polaris World bankruptcy, just eight days until April 22nd deadline

The article below is published in this weeks newsletter from:

http://www.simplynetworking.es/index.php

 

Polaris World bankruptcy, just eight days until April 22nd deadline 

2010-04-14
There are now just 8 days to go before Polaris World is forced to make an announcement about its' future, as this is all the time it has left to negotiate a solution to it's financial problems or be forced to enter into a state of voluntary bankruptcy.
It originally went to the courts on the 22^nd December to seek 3 months protection from it's creditors to enable it to renegotiate its' debt, then was granted one further month on 22^nd March, but the law provides no further shelter and by the 22^nd April it must have the situation resolved one way or another.

There's very little firm information to be found about exactly what is going on at the moment, and surprisingly little speculative musings in the press, all that is known for definite is that Polaris is frantically letting staff go, closing offices, and trying to close deals which will sell off various parts of its empire to different parties, effectively carving up the empire into lots of little pieces.

The level of debt is still not clear. Figures were quoted in December of 110-120 million euros, owed mainly to the big four, Bancaja, CAMbank, Banco de Valencia and Banco popular, who are owed approximately three quarters of the outstanding figure, the rest to smaller creditors, Cajamurcia and Cajamadrid, although the figures being quoted at the moment are 90 million , 83 million and 88 million.
More than a billion euros worth of re-financing was arranged last autumn when property was exchanged for debts, which left the big banks holding 6 million square metres of land which had been zoned for building ready to expand into Condado de Alhama 2 and a plethora of other properties, under the name of the IRM, Iniciativa Resort Mediterranea. ( Banco de Valencia, Banco Popular, Cajamadrid, Cajamurcia, Caja Mediterraneo.)

Since this renegotiation, Polaris ran up these further debts due to the operating costs of maintaining offices, sales staff, and basic operating costs, costs which it is now desperately trying to reduce and shed.

We have been told by various sources that many of the assets and companies have been sold or that deals are on the verge of completion.
Although nothing can be officially confirmed, rumours abound that deals on the petrol station and  supermarkets have been  concluded, with others agreed on the golf courses which are completed and have a hotel already in place as well as several smaller associated businesses.

Unsold property stock, estimated at around 450 million is to be taken on by the banks, although the big sticking point on this is valuations.
Polaris optimistically announced on 23rd March that it had sold 12 properties in the few days preceding the March 22^nd deadline and that stirrings in the property market were creating a new mood of optimism in construction circles.

This optimism , however, was all based on the excitement that Paramount studios were considering Murcia as the site for a new leisure complex and theme park, a possibility which lead those with a few euros to spare into a spot of speculative purchasing, but the bubble seems to have burst as Paramount have since announced that they have no interest in building a theme park in the region, although government sources say that viability studies are still in progress for the construction of a leisure facility.

The big problem Polaris have faced this month is the valuation of their property assets. Property prices have fallen since last year, although banks and agents have wildly differing statistics for the percentage by which properties have devalued.
Some agents openly say they are selling the bargains, with canny purchasers renting until someone is desperate and snapping up properties at 35% reduction on peak values, and banks are openly offering properties at this level of discount in public auctions and in special property exhibitions throughout Spain, particularly properties at the lower end of the quality and desirability scale.
The government are still trying to maintain that pieces have  fallen by less than 10% since their peak, although say that to an estate agent and they'll raise their eyebrows and mutter something along the lines of they'd be happy to be able to sell anything at that sort of discounted price.
Polaris don't want to give it all away for nothing, although as the days count down and the deadline of the 22^nd April approaches, it's increasingly a question of how much they can sell off before being forced to settle on a figure way below their expectations for the remaining balance.

8 days and counting.

 Track the story back
23rd March. Polaris negotiate 1 months grace, 23rd March
22nd March , 3 month protecion expires today, expires
Could the cross of culture raise a phoenix from the ashes of polaris
Track the story back, Polaris world talks, the unofficial version
Polaris claim settlement is imminent
And back
Rumours that Polaris World is re-negotiating debts, 10th June2009
Mayor of Alhama meets Polaris representatives,  Polaris pay Alhama 31st Dec
Company traded off 1000 million euros worth of debt, Polaris World problems 30th Dec
Polaris world crisis, what the papers are saying, Polaris World debts 30th Dec
Polaris World seeks court protection from creditors, Polaris world crisis 29th Dec

POLARIS UPDATE _ FROM MIKE PRICE'S FORUM

Just read this and thought it is worth reading:

MIKEY2009
Approaching The Pin


United Kingdom
27 Posts

Posted - 13/04/2010 :  22:45:03

Just returned from Murcia yesterday. I had two meetings with Customer Services and these are the findings. Hurray. My appartment on Phase 2 has finally started Crane Number 5 and they drove me out to see it. Brilliant but pity it is 3 years late. Polaris are cutting their staff from 3000 to 750. Polaris dont own the golf course now either. They own nothing as the banks own everything. Polaris will only receive finane from the banks as and when they sell properties and people have completed before they start the next phases. Las Islas will not be built. All finances are being directed at Terrazas De La Torre, And smiles all round as they inform me now that my appartment being built and the 18 months clock ticking. Still they are alive for this year but as was quoted to me they dont know about next year as thay need loads of sales.# Still no habitation certificates for Phase 2 even though they are still asking people to complete. DONT UNDER ANY CIRCUMSTANCES AS I HAVE VIEWED PHASE 2 AND LOADS STILL TO BE DONE. Cheers

Las Terrazas de la Torre Visit on 13th April

I made a visit to Terrazas on 13th April. I had hoped to get over there earlier in my Easter visit but things were busier than I had expected  with a couple of shopping trips for my La Torre property needed and then the arrival of some family.

My visit was on a pretty dull day which was a pity from the point of view of taking photographs as most of our time was nice and sunny but yet again I was impressed both by the progress since my last visit but also the amount of work being done on site.

The only disappointment was that there didn't appear to be any golf on offer. No flags on greens so  I am assuming the opening date has come & gone without anything happening. If anyone knows different please advise. I seem to remember that there was to be a competition in April but note that it is now slated for May.

I was able to drive in "unopposed" for a change and was able to get down to the Town Centre but no further. Then I parked at Stephie Graff & went for a walk on the golf course.

The Town Centre continues to evolve and is beginng to take on a shape with windows and doorways defined and a large part of it plastered and painted. Interestingly on the PW HQ model it was originally to be terracotta matching Las Islas apartments but is actually white.

  

There doesn't appear to have been anything done recently to the "Old House" which looks just the same as when I last saw it. There may have been something done internally but I doubt it.

The thing I saw was the work on the 4 blocks on Phase 2. I was a little disappointed that it hadn't jumped out of the ground! It didn't appear to be much more developed than in some of the February photos but there was work going on, cement being poured etc.

By far the most interesting thing I saw was that they appear to have started another 3 or 4 apartment blocks. The one below is on the Phase 1 side of the road leading in towards the Town Centre from the Phase 2 side.

These appear to be on the same side of the road.

Finally, the golf course. I had not walked on it since last August and it may have been my imagination but there seemed to be a much more mature look to it and the place really is taking shape.

See what I mean? All of those individual bushes with 8 months growth are begining to look like they have been there for years. 

It looks as if there will be plenty of trouble to be found!

I played at La Torre when I was over and there are some pretty interesting slopes on the greens but I don't think that they will come close to Terrazas in terms of some the humps and hollows.

Picture yourself putting from one level to the other on the one below - some of the slopes have secondary slopes.

I just hope when it is all up and running that the greens aren't too tricked up, we aren't all pros!


I am back over in early July, so as usual, any updates and photos from anyone there in the meantime will be gratefully received!