The solvency of Polaris World gives an advantage to buyers who want to terminate their contract and recover their money.

The Polaris World residential complex is not going through its best moment. After recognizing the insolvency of 15 of its subsidiaries, approximately half of the subsidiaries that belong to the group, the firm has managed to dodge Murcia bankruptcy at the last minute. Through an agreement in extremis, Polaris has transferred assets worth more than EUR 80 million to satisfy debts with its major creditor banks.

In this situation, buyers of homes that have not been delivered by a notary deed, have begun to abandon their compromise to purchase homes by terminating the purchase contract and by demanding repayment of the amounts paid to date plus statutory interest. The termination of the contract can be successfully demanded in the following cases:

1 - delays in the delivery of the property with regard to the date specified in the purchase contract;
2 - delays in the commencement of the construction. Read article.

The termination of the purchase contract can be either if you have a bank guarantee or insurance policy or not.

According to legal sources, this situation favors those who wish to terminate their contract with the firm as Polaris has to pay to purchasers who wish to terminate their contract, but only during this period of compliance with the agreement that has been reached with its main creditors.

"If Polaris World had entered into an insolvency procedure, this would mean that purchasers wouldn’t have received 100% of the amounts due. Now that Polaris has recovered solvency, during this period creditors/purchasers can recover 100% of their credit as the company is required to pay all of its debts”.  Otherwise, we might be talking about a new insolvency for non-regular payment of their debts thus incurring a possible new arrangement with its creditors.

In 2007 the number of Polaris World homes amounted to 5,500 (65% for British citizens). In the same year Polaris World started a project to build 17,000 homes, mostly in a town of Murcia (Alhama) of only 18,000 inhabitants.

Foro Concurso Acreedores and Lexland Solicitors will help you with the entire process. Contact us to protect your interests:

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