Warsaw, date: 15 November 2019
Fadesa Polnord Polska sp. z o.o. (FPP) Update
UPDATE ON LIQUIDATION OF SPANISH MARTINSA-FADESA S.A. The below text complements the text dated 9th March 2015 (updated on 5th October 2015) published on this web.
Questions regarding MARTINSA-FADESA S.A.
- What does the opening of the liquidation process of MARTINSA-FADESA S.A. mean?
On 6 March 2015, Court in La Coruña (Spain), Commercial Division No. 1, opened the liquidation process of MARTINSA-FADESA S.A. The company was placed in liquidation as it had been unable to repay debt to its creditors within the timeframe established under an agreement concluded with its creditors back in March 2011.
Three members of the bankruptcy Management Board, who already participated in the arrangement proceedings with the creditors from 2008 to March 2011, were appointed liquidators of MARTINSA-FADESA S.A. They are responsible for managing and disposing of the company’s assets. It is the liquidators’ task to prepare a plan of selling off the assets of MARTINSA-FADESA S.A., to be approved by the judge overseeing the company’s liquidation process.
On 29 September 2015, the plan of selling off the assets of MARTINSA-FADESA S.A. was approved by the judge overseeing the company’s liquidation process.
On December 2018, the number of liquidators was reduced from three to two.
The statutory liquidation period lasts one year. Since MARTINSA-FADESA S.A. is one of the largest companies in the real property sector in Spain, the liquidation period was initially extended till 31 December 2017. This date, 31 December 2017, was referential and further extension of the liquidation period is being granted yearly by Court in La Coruña.
- Will the liquidation of MARTINSA-FADESA S.A. affect its subsidiaries outside Spain?
The liquidation will not affect the subsidiaries of MARTINSA-FADESA S.A. organised in other countries than Spain. Each of the subsidiaries is a separate legal entity. The international subsidiaries are stand-alone entities, independent of MARTINSA-FADESA S.A., engaging in their own business operations that will not be impacted in any way by the liquidation of MARTINSA-FADESA S.A.
Questions regarding FADESA POLNORD POLSKA SP. Z O.O.
- What is the interest that MARTINSA-FADESA SA holds in FPP?
MARTINSA-FADESA SA holds 51% of shares in FPP.
- Will the liquidation of MARTINSA-FADESA S.A. affect the management and business operations of FPP?
The liquidation of MARTINSA-FADESA S.A. does not affect FPP. FPP continues to work on its construction projects and manage its resources in the same way as it had done till the moment the liquidation was opened. When MARTINSA-FADESA S.A. was subject to the arrangement proceedings from July 2008 to March 2011, at FPP it was also business as usual. Since July 2008, FPP has sold over 3200 apartments in Poland, out of which over 1300 in the project launched in the spring of 2010 in Wrocław. During that time, FPP has also acquired new land for residential development in Wrocław. The last plot has been acquired as recently as April 2018. The current projects underway in Wrocław and Warsaw, both those under construction and at the preliminary development stage, are all on schedule.
FPP is among the top performers in the property development sector in terms of financial liquidity in Poland, boasting a very low level of bank debt. For detailed information on FPP’s financial standing and the company’s financial statements visit our website at Financial data
Financing
- The construction of the INNOVA CONCEPT estate in Wroclaw is financed by GETIN NOBLE BANK S.A. since February 2019.
- The construction of the OSTOJA-WILANÓW estate in Warsaw was financed by PEKAO S.A. between 2006 and 2016.
- The construction of the OSIEDLE-MODERNO estate in Wrocław was financed by GETIN NOBLE BANK S.A. between 2013 and 2015.
- The construction of the APARTAMENTY-INNOVA estate in Wrocław was financed by GETIN NOBLE BANK S.A. between 2015 and 2018.
All FPP projects are subject by the provisions of the Act on Protection of Rights of Purchasers of Apartments and Single-Family Houses of 16 September 2011. This means that advance payments made by the customers on account of their future apartments are deposited in escrow accounts and subsequently released by the bank on completion of successive milestones of the project.
About Fadesa Polnord Polska
FPP was set up in 2005; its shareholders comprise Spanish MARTINSA-FADESA S.A. (51% interest) and Polish POLNORD S.A. (49% interest). Currently FPP has under construction the Innova Concept (www.innovaconcept.pl) estate in Wroclaw. FPP has built as well the Ostoja-Wilanów (www.ostoja-wilanow.com) estate in Warsaw and the Osiedle-Innova (www.osiedle-innova.com), Osiedle-Moderno and Apartamenty-Innova (www.osiedle-innova.com) estates in Wroclaw. In addition, FPP holds land in Poland that is sufficient to construct another 350 apartments. From its inception to 30 Septembrer 2019, FPP sold 3,236 apartments, of which 1,307 in Wrocław, and handed over keys to 3,154 apartments. In 2018, FPP sold 101 apartments, handed over keys to 96 apartments, and had revenues of PLN 47,9 million
Warsaw, date: 15 November 2019
