Another Spanish Developer Goes Bust

Aifos, holiday home developer based in Marbella, has been forced into receivership by one of its creditors. One does wonder how they managed to avoid this for so long, and it was the action of a single creditor that forced the issue. Considering the company has studiously managed to avoid handing over any finished properties for years, it comes as no great surprise. Aifos’s many disappointed customers, some of whom made payments as much as 7 years ago and still have no home to show for their payments, will need to act sharply if they wish to avoid losing all hope of recovering their money.

Aifos is one of the biggest developers in Andalucia, and has been headed for this since 2006, after being caught in Operation Malaya, a police operation against municipal corruption. Jesús Ruiz Casado, the owner of Aifos, and Jenaro

Jesús Ruiz Casado, President of Aifos, was arrested in 2006

Briales, the then Managing Director, were arrested on the suspicion of paying bribes. Aifos is also accused of unethical conduct by many of its customers, and has serious, unresolved problems at many of its developments, some of which have been illegally built.

The company is reported to have 850 million Euros of debt, which would make it one of the biggest developers to date to go into administration, after Martinsa-Fadesa and Tremon. Its biggest creditor is Banco Popular, which it reportedly owes E200 million, followed by Banco Pastor, which it owes E150 million, though Banco Pastor claims its exposure to Aifos is only around E30 million.

Gestión de Obras y Reformas Ltd, one of Aifos’s suppliers and creditors, started bankruptcy proceedings against Aifos last week in a court in Malaga. Press reports speculate that the failure of the Spanish developer Tremon might have prompted the bankruptcy proceedings against Aifos.