GRUPO SANCHEZ is filing for bankruptcy

[Golfingworld]

I have no reason to defend Grupo Sanchez but in fairness to them all that has happened is inevitable when people or business try and buck the system by attempting to distortpure economics...i.e supply and demand. The very sort of "overseas offplan" property schemes have been vulnerable to crash for some time now as they are or can be false markets created by false price increases in an attempt to give the impression of boom and quick profit. It is sad if people lose money in these schemes but in reality it is inevitable...Brazil has demonstrated signs of high risk for ages and no real consumer demand for these high priced (off plan resorts) falsely talked up by parties keen to sell deposits to finance these schemes.

Awful painful lesson for some but hopefully a lesson learned by others.....there aint no quick route to riches and certainly not via offplan overseas very speculative flaseley priced property schemes! Simple as that.

[wolfgang]

I would be surprised if anyone loses money directly as a result of Sanchez's overly ambitious plans-deposits were covered by Barclays Bank SA Madrid.The main price to be paid in my view will be the opportunity cost for those who have waited 12 months to have to go back to square one (minus)

What it does illustrate of course is that there is absolutely no corrolation between size and security in these volatile times and that very often the "safest" investment is more dependent upon the strength of the proposition itself and its market appeal.

[ady1231]

Originally Posted by wolfgang

I would be surprised if anyone loses money directly as a result of Sanchez's overly ambitious plans-deposits were covered by Barclays Bank SA Madrid.The main price to be paid in my view will be the opportunity cost for those who have waited 12 months to have to go back to square one (minus)

What it does illustrate of course is that there is absolutely no corrolation between size and security in these volatile times and that very often the "safest" investment is more dependent upon the strength of the proposition itself and its market appeal.

So are they officially bankrupt now? Golf Natal will not take place?

[JMBroad]

Originally Posted by ady1231

So are they officially bankrupt now? Golf Natal will not take place?

They were/are promoters for GNG not developers per se. Whether it will still go through or not depends on the owners of the land and the holders of the licenses which is an unrelated Brazilian entity.

The company (Grupo Sanchez Spain) has filed for administration meaning the assets of the company will be managed by an independent third party who will do what they deem necessary to turn the situation around and try to get out of the financial problems they are in. This third party will be a court representative (judge normally).

It's not a good sign for the Spanish company but the people who will probably be more concerned about this is the staff that work for Sanchez, not necessarily the investors who have made reservations on the development.

For the investors I agree with Wolfgang. Their main concern is "opportunity lost" - how much money they could have made by investing the reservation deposit into another investment vehicle and how much they "failed to earn" on that capital.

[marcia]

Hello and sorry for my english (I'm from Spain). Some investors who put deposits and me have created a list os people affected for Grupo Sanchez (bankruptcy or so on) .If you have bougth like me and my partners you can join to us in order to negociate with Grupo Sanchez, or chance information.
Our email: marguelles10@yahoo.es

[SCAFF]

Well people believe me you all had a lucky escape. I Owen a property in Elegance Denia and have done for three years now and for the three years the community has been chasing Sanchez not only for community fees for unsold properties with in the urbanization but also to try to get them to fix the many serious faults within the building. We as a community where in the process of setting up some meeting to take them to court. I cant speak for their other developments but within ours at Denia it is the equivalent of the builders from hell. I'm not surprised they have gone under as their reputation for building was taking a battering, indeed so bad that they could not sell any more of the units with in Elegance at Denia. Trust me when i say you all got off very lightly. Hope everything works out for you all and with any luck a decent builder will come in and Finnish your project.
Good luck.

[surfingbrazil]

Originally Posted by wolfgang

I would be surprised if anyone loses money directly as a result of Sanchez's overly ambitious plans-deposits were covered by Barclays Bank SA Madrid.The main price to be paid in my view will be the opportunity cost for those who have waited 12 months to have to go back to square one (minus)

.

Wolfang & JM

Again , agents minimizing trouble !
Unless the buyer has a separate bank guarantee from a bank, which is not the case for the ones seeking legal help ( they would had collected the funds from Barclays and will not address this forum ), the money is lost.

Bankruptcy comes in two steps, according to Spanish law.

First: # CONCURSO DE ACREEDORES#, with a judge in command.

Second: # DECLARACION DE QUIEBRA#, when this judge realizes that there is no money to everyone claiming debts.

When the first is accepted only a miracle may avoid the final step…and miracles belong to another world.

It is only a matter of time and legal proceedings.

JM, what should these people do?
Invest in one of yours off-plan places?

??????????????????????

[Golfingworld]

Surfing, as usual I entirely agree with you...what we see here is the exposure of this crazy "world off plan market" as a ludicrous situation which has finally caught up with investors and sellers alike. I think the comments on here from the paople in Denia says a great deal about this alleged mega company. Any one wishing to invest now should get on a plane, look at what is actually constructed and make an offer on what they see with their own eyes......future investors please learn from this situation and stop believing hype and propaganda put out by these Agents and Developers....there are bargains to be had in Brazil for sure but do it yourself and work with people actually there locally...do not deal with Agents in Spain or other places as they just cannot justify their expertise being so far away.

[JMBroad]

Originally Posted by surfingbrazil

Wolfang & JM

Again , agents minimizing trouble !
Unless the buyer has a separate bank guarantee from a bank, which is not the case for the ones seeking legal help ( they would had collected the funds from Barclays and will not address this forum ), the money is lost.

Bankruptcy comes in two steps, according to Spanish law.

First: # CONCURSO DE ACREEDORES#, with a judge in command.

Second: # DECLARACION DE QUIEBRA#, when this judge realizes that there is no money to everyone claiming debts.

When the first is accepted only a miracle may avoid the final step…and miracles belong to another world.

It is only a matter of time and legal proceedings.

JM, what should these people do?
Invest in one of yours off-plan places?

??????????????????????

For a start, as far as I know Wolfgang isn't an agent but I may be wrong.

Second, if they had invested in one of the projects I'd contracted, they wouldn't have this issue.

Third, as long as the investors were using competent legal representation their money would never have been sent to Sanchez until the private purchase contract was signed, as I understand it none ever were, so the money never got to Sanchez. Should still be with the investors lawyers.

So once again as I've always said time and time again. Make sure that what you are investing in is a safe investment. Do your due diligence. If you have the knowledge to do that yourself, then good for you and best of luck. If you don't, then I'd recommend you work with an agent who does.

[wolfgang]

"Unless the buyer has a separate bank guarantee from a bank, which is not the case for the ones seeking legal help ( they would had collected the funds from Barclays and will not address this forum ), the money is lost."( previous posting by another member)

It IS a seperate guarantee from a bank (and it is too early for financial redress to call in the funds).There is no truth in the rumour that the rather small and inconsequential financial institution known as BARCLAYS is a subsidiary of Grupo Sanchez!