Polaris World avoids bankruptcy

April 23, 2010 - PRLog -- After four months of negotiation with creditors, Polaris World yesterday evening signed an agreement with four banks for the sale of company assets in order to obtain the necessary liquidity for the company to trade through the crisis in the Spanish real estate sector.

The banks involved are CAM, Bancaja, Banco Popular and Banco de Valencia and the debt amounted to approximately 83 million euros. In return, Polaris has handed over assets including houses, golf courses, land and hotels. With these funds, the property development company hopes to be able to continue with the development of its projects and the ordinary activity (paying suppliers and employees) until there is a recovery in the real estate market.

Four months of negotiation between Polaris and the financiers have been a struggle in which the company has tried to retain as many assets as possible while allowing it to avoid bankruptcy proceedings. The valuation of company assets has been the most complex point of the negotiation and the cause of the delays in signing an agreement up to the last moment. Negotiations have gone on well into the night on occasion.

The banks CAM, Cajamurcia, Bancaja, CajaMadrid, Banco Popular and Banco de Valencia now own around 6 million square metres of land at Condado de Alhama, where Polaris World were planning to build the second phase of the Condado de Alhama. This area has now been proposed as a suitable site for a ‘Paramount Pictures’ Theme Park. The banks also now own the Intercontinental Hotels, golf courses and the majority of remaining properties previously owned by the company.

In the meantime Polaris World have been continuing with work to the central building at Hacienda Riquelme Golf Resort in an effort to complete this popular resort, along with developing El Boulevard – a parade of shops, restaurants and bars situated just outside the Mar Menor Golf Resort.

The majority or residents on the resorts are pleased that this agreement has taken place because it could allow independent operators into the resorts to run the restaurants and bars, along with the hotels and golf courses. A little competition should mean better service, better value and more choice. The resorts themselves are already managed by the respective Residents Associations.

For further information regarding the latest news and property offers do not hesitate to visit http://www.murciagolfproperties.co.uk

# # #

Murcia Golf Properties are the leading real estate agent specialising in selling resales and bank repossession properties on the golf resorts of Murcia.
Polaris World specialists with the largest portfolio of properties of any agent, inclduing many exclusive deals and offers.
Murcia Golf Properties also offer exclusive deals and discounts at resorts such as Peraleja Golf Resort, Roda Golf & Beach Resort & Corvera Country Club.
http://www.MurciaGolfProperties.co.uk