BYE BYE FADESA

[hello]

As was stated 2 years ago - this was only a matter of time with such poor management and a company that could only survive in a rising market. According to bloomberg:

Martinsa Shares Are Suspended After Bankruptcy Report (Update2)

By Sharon Smyth

July 14 (Bloomberg) -- Martinsa-Fadesa SA was suspended from trading in Madrid after the newspaper Expansion reported that the developer's creditors expect the company to seek bankruptcy protection this week.

Before the suspension, Martinsa fell as much as 29 percent to the lowest since the shares first traded last year. The Madrid-based company's market value has fallen to 680 million euros ($1.1 billion), less than half of a peak reached in March.

``A weak real-estate market, along with the problems developers are having with refinancing their massive debts, increase the possibility that companies seeking protection end up suspending payments,'' said Francisco Salvador, a director at Venture Finanzas SA, a Madrid-based broker.

Spanish real estate companies are struggling with higher financing costs after a residential housing slump coincided with more than $400 billion in mortgage-related writedowns and losses at financial firms. The five largest developers in Spain have lost 6 billion euros in market value so far this year. Eleven developers including Grupo Llanera, Seop, Labaro, Jale, Prasi and Cosmani have sought protection from creditors since October.

On July 11, Martinsa asked the banks that refinanced the company's debt for more time to secure a 150 million-euro loan. Martinsa asked to borrow the money from the Institute of Official Credit, a state-run credit agency, and will hold a board meeting at 4:30 p.m., a spokesman said.

Assets Decline

Martinsa has 5.2 billion euros of debt. Its assets are valued at 9.7 billion euros, down from 13 billion euros in June 2007, according to regulatory filings.

The company was formed from the merger of Grupo Martinsa and Fadesa Inmobiliaria SA, which was bought by Grupo Martinsa for 4 billion euros last year. Chairman Fernando Martin is the largest shareholder with a 60 percent stake.

Martinsa owns houses, holiday resorts and shopping malls and golf courses in Spain, Morocco, Poland, Mexico and Portugal.

La Caja de Ahorros y Pensiones de Barcelona and Caja Madrid, Spain's two largest savings banks, have loaned more than 1 billion euros to Martinsa, while Banco Popular Espanol SA, Spain's third-biggest bank, has loaned 400 million euros, Expansion said.

Eloy Ecija, a spokesman for Banco Popular, and spokeswomen for La Caixa and Caja Madrid declined to comment on the newspaper report.

The number of Spanish companies seeking protection from creditors more than doubled to 1,010 in the first half. A slump in the country's residential-property industry has increased the indebtedness of many construction companies and developers.
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Glass pipes

[Pepe Le Pew]

Martinsa Fadesa has gone into voluntary adminstration a few hours ago.

I just feel sorry for the many clients (and agents) who have placed their confidence in the Fadesa outlay in the UK and Spain and that have been robbed of their hard earned cash that will take a miracle to recover.

Forget speaking to senior management in both places as they will hide and not show their faces.

Put in down to experience. Much more was lost during the war.

[1frenchy]

this is bad news
how about alkudiasmir development ???

[Pepe Le Pew]

this is bad news
how about alkudiasmir development ???

Don't forget that 50% of old Fadesa Maroc is now held by Addoha (the Moroccan Company) who also have the management. This is at least so in Saïdia so I take it it will be the same at Alkudia Smir.

In theory work will continue in the sites. As far as Martinsa Fadesa is concerned they have probably issued Deposit Guarantees so it will be worth your while looking at this possibility at the same time with your lawyers. If only as an exercise to be prepared for the worse.

Radio reports this morning (Tuesday) have stated that Martinsa Fadesa will continue operating despite announced cutbacks. Let's hope that all will be OK and that people get what they have paid for or their money back quickly.

I just wonder sometimes the wisdom of somebody that buys a perfectly healthy company (Fadesa) on credit and at the start of a building recession. This is the same guy who tried it with Real Madrid a few years back. There is no doubt that Mr Martin's quest for fame overpowers any business common sense.

Pepe

[hello]

Fadesa Maroc in my opinion will be bought for nothing by Adohha and they will take over the construction. They already own 50% of all of their sites including ALcudia and Saidia. The only problem that could occur is switching contracts to work with Adohha and whether or not they complete on time and to the same standard (Social housing background) but they do without doubt have large sums of ready cash.

As for the other Martinsa Fadesa sites around the world, especially in Spain, then unfortunately people who have not completed will probably lose their deposits and those who have completed will be stuck on a half built resort similar to the scenarios seen back in the early 90's.

As for talking to management in Martinsa, clients have little hope as they had little or no control before, once the creditors get into the company the management will become obsolete.

I feel sorry for people who have bought from this company, the bank guarantees that were offered in many cases only ran for 2 years and knowing how incompetent Fadesa was Im sure most weren't even registered.

Everyone who bought in Alcudia Smir will at least have an asset to sit back on once Adohha finish them but as for the rest, forget about it.
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WHOLESALE VAPORIZERS

[Pepe Le Pew]

Fadesa Maroc in my opinion will be bought for nothing by Adohha and they will take over the construction. They already own 50% of all of their sites including ALcudia and Saidia. The only problem that could occur is switching contracts to work with Adohha and whether or not they complete on time and to the same standard (Social housing background) but they do without doubt have large sums of ready cash.

As for the other Martinsa Fadesa sites around the world, especially in Spain, then unfortunately people who have not completed will probably lose their deposits and those who have completed will be stuck on a half built resort similar to the scenarios seen back in the early 90's.

As for talking to management in Martinsa, clients have little hope as they had little or no control before, once the creditors get into the company the management will become obsolete.

I feel sorry for people who have bought from this company, the bank guarantees that were offered in many cases only ran for 2 years and knowing how incompetent Fadesa was Im sure most weren't even registered.

Everyone who bought in Alcudia Smir will at least have an asset to sit back on once Adohha finish them but as for the rest, forget about it.

Hello Hello,

I agree that Fadesa Maroc will be bought for peanuts by Addoha, which is fine, I mean, you couldn't do a worse job (Fadesa Maroc) even if you tried. Addoha's sole mission here is to clear up the mess (and what a mess) but they have already admitted thay don't have the capability to finish off such gigantic projects. In fact I live around these parts and know them well so I'm afraid I have to agree with that. Doesn't look good for buyers who are now stuck in a doorway and it seem they will stuck for sometime to come.

I also know Martinsa Fadesa well and from experience it's on the cards that clients will lose their deposits and not get a finished product. What you say about Bank guarantees is true, Fadesa has never been the best managed company in the world at local, national or international level and the chances are the Bank Gurantees hasn't even been regsitered.

I feel sorry for the employees of Martinsa Fadesa but feel even more sorry for the clients and even the agents. My experience of the UK is of a mature and knowledgeable market where confidence is given the benefit of the doubt. Unfourtunately such good faith have not been corresponded by an arrogant, ill-prepared and irresponsible management (at all levels).

We better all treat this experience as an unsuccesful visit to the Casino.

Pepe

[1frenchy]

«Fadesa Maroc possède ses propres patrimoine et actifs. Le financement des projets en cours s’effectue sur les fonds propres, les bénéfices réinvestis ainsi qu’à travers des prêts bancaires. Aucun centime n’est emprunté à l’étranger», insiste-t-on chez Addoha.

source;www.leconomiste.com

[1frenchy]

" Fadesa Maroc possesses his(her,its) own heritage(holdings) and assets(active persons). The financing of the current projects is made on stockholders' equity, profits were reinvested as well as through bank loans. No centime is borrowed(taken) abroad ", as it is insisted at Addoha.

[riaz]

Fadesa maroc is not part of Fadesa. However as it is a new company, don't we need to have new contracts woth fadesa moroc aldoha?

I think Aldoha will do a good job.

Riaz

[shak]

You guys were warned.

[mcneilee]

You guys were warned.

yeh from the one with the axe to grind

http://uk.reuters.com/article/hedgeFund ... 1220080716

[Pepe Le Pew]

Fadesa maroc is not part of Fadesa. However as it is a new company, don't we need to have new contracts woth fadesa moroc aldoha?

I think Aldoha will do a good job.

Riaz

Fadesa Maroc is in turmoil around this parts. They have now come to a complete standstill at least as far Mediterrania-Saïdia is concerned. The flagship hotel *****GL Barceló (There are now only two hotels out of nine)has said it's farewell and big Continental European Investors are pulling out on a daily basis. The Marina and Commercial Centres are being gradually abandoned.

Developers who bought land from Fadesa and specially those who relied on them to construct are being left stranded.

The plots have not been segregated for individual registration (should have been done five years ago - gross negligence?) so all and sundry are stuck in the waiting room.

I will not even now go into technical details about sanitation, water supply, electricity, etc, because I dont want to come across has a pain in the posterior (there are beleive it or not, still quite a few die hard Fadesa fans out there - Karma?)

My Question: What have Fadesa Maroc done all this time?

THE ONLY HOPE (At least for Saïdia) is the King's commitment to his very personal project. But here is a problem, I don't think ADDOHA has the capability (has been addmited to me straight from the horse's mouth) to finish in such a scale.

The sooner that Fadesa Maroc (or anything to do with the ex-Galician giants) are out of the way the better because they are simply contaminating the way forward. This is number one, number two is that the King is iluminated by the almighty prophet and we see the light.

Ishallah.

Pepe

[Pepe Le Pew]

Fadesa maroc is not part of Fadesa.



Riaz

Yes it is.

You will see why soon...

Pepe

[mcneilee]

got this in an email

Morocco is in effect a separate entity; funded differently and 50% owned by us

so who owns the other 50 Addoha or some other company


Press Release
Martinsa-Fadesa goes into voluntary
administration to guarantee the continuity of
its company
This process only affects Martinsa-Fadesa, S.A., in Spain, and not the international
branches of the company in the other countries that we are present, which will continue
to operate with normality.
Madrid 16th July 2008.-Martinsa-Fadesa’s board of directors took the decision to go
into voluntary administration with the ultimate objective of guaranteeing continuity and
proceeding with the financial reorganisation of the company.
This decision has been taken in light of the financial difficulties we have been
experiencing as a result of not obtaining 150 million euros credit, which was included in
the business plan, and it was necessary to obtain liquidity and to continue developing
our projects as expected.
Martinsa-Fadesa’s board of directors have initiated these proceedings as soon as they
had certainty of this credit not being granted, to thus avoid any future damage to the
employees, creditors, clients and shareholders.
As such, the Chairman of Martinsa –Fadesa and the members of the board of directors
will continue to lead the company.
It is important to note that the measures we are adopting in this process will allow us to
solve the problems of liquidity and clear our debts in the shortest time possible.
Martinsa-Fadesa, under the above mentioned administrators supervision, will focus all
its efforts, from now, on activities such as generating income through selling assets, land
management and those which will allow the company to re-structure and adapt to
current market needs, which will enable the company to relaunch its projects as soon as
this process is over.
Martinsa-Fadesa is aware of the impact that a measure like this will have on its clients,
providers and small shareholders as well as the Spanish property sector in particular
and the Spanish economy in general. This is why the company, responsibly, assumes
the commitment of working intensely to overcome this situation as soon as possible and
asks for the support of financial institutions and understanding from clients, providers
and shareholders.

Note to the editor
Martinsa-Fadesa is one of the major European Real Estate companies specialised in
development of first and second real estate projects and with assets in hotel projects and
commercial centres linked to the residential activities. Martinsa-Fadesa has a portfolio of more
than 173,000 houses and owns land of approximately 27.5 million Sq.m of buildable land.
Martinsa-Fadesa is one the main European companies with international presence in Spain,
Portugal, France, Morocco, Mexico, Dominican Republic, Romania, Hungary, Poland, Bulgaria,
Czech Republic and Slovakia as well as commercial offices in the UK, Ireland and Germany
For more informartion

[Pepe Le Pew]

got this in an email

Morocco is in effect a separate entity; funded differently and 50% owned by us

so who owns the other 50 Addoha or some other company

Hi McNeilee,

I am now in the middle of the Mediaterrania-Saïdia complex sitting in my car with my laptop and reporting on it to various people:

Since I have been accused as a gloom and doom merchant (a la Shak) we can choose on two different perperctives:

One) Is that we take the spirit on the above mentioned e-mail and we all switch off our computers safe in the knowledge that Fadesa Maroc is ...in effect a separate entity; funded differently (lol - this is mine) and 50% owned by us"

Two) Is that you take it from me that the project (as at today 18/7) has been abandoned and there is not a soul in sight.

Take your pick.

I would recommend that you take anything that comes from MF ar any of their overseas mandarins with a local council frosty road type sack of salt.

Pepe Le Killjoy