Adelaide Development

Discussion in 'Romania property' started by atul, Jan 18, 2010.

  1. Nicola BSN

    Nicola BSN New Member

    We'll have to beg to differ as I don't believe you. My last post relayed our lawyers explanation of the insolvency procedure and I'll side with them on this one as they are actually in negotiations with South Pacific right now.

    As for your snipe about Legal Independence - the way in which we operate is about as far away from L.I. as it's possible to get!

    You seem to have found lawyers of your own, now, and I have clients to attend to, so best of luck with your case.
     
  2. pash

    pash New Member

    Does any one know the name of the insolvency company dealing with Adelaide?

    My thinking is why should i pay out more legal fees £ 2,000 euros plus VAT by the lawyer ive been dealing withy since day 1 (THROUGH MRI)


    Any comments welcome....
     
  3. adelaidebucharest

    adelaidebucharest New Member

    800 including VAT is the best I have found with a British Lawyer in Bucharest. I and one other will be using him. PM me for details. The more people the better purchasing power we have,

    Cheers
     
  4. steve01

    steve01 New Member

    Hi Nicola

    Could you elaborate more on this please I thought it was just Adelaide that was in insolvency? What does this mean by SP taking an active role in the insolvency?
     
  5. Nicola BSN

    Nicola BSN New Member

    Hi Steve

    Adelaide and Melbourne are in insolvency. This case is unusual in that South Pacific are actively trying to reduce creditors, by negotiation, whilst the insolvency proceeds - probably to reduce the impact of the final debt.
    Would you mind if I comment on this further tomorrow? We have a duty of care to our clients and, although the lawyers have emailed all those affected already today, we don't want clients reading information here before having a chance to read and digest their emails.
    If I haven't posted by lunchtime it means I'm really busy so give me a nudge!
     
  6. steve01

    steve01 New Member

    Thanks Nicola

    Your information is much appreciated.
     
  7. Shape

    Shape New Member

    Curiosity

    Out of curiosity would you happen to be the same Nicola - also resident in Spain -who signed the contracts under a power of attorney organised via MRI?
     
  8. Shape

    Shape New Member

    It is difficult to see that your lawyers are "in negotiations" with the developer - the developer has no basis to negotiate as it has no cashflow having not built Adelaide and any payment made would be subject to challenge by the liquidator and will need the approval of the court, as a refund of a deposit would not be a payment in the ordinary course of the business.

    The purpose of the voluntary insolvency proceedings in Romania is like Chapter 11 proceedings in the US - to take a breather from creditors and those who do not file in time will be left out of account. After the final table of creditors is ready, the developer and any creditor holding 20% of the debt can put forward a reorganisation plan for approval by the creditors meeting. This will probably be the intended objective of Adelaide Residence as South Pacific Adelaide is now called.

    Quite a number of companies have used voluntary insolvency especially where they have foreign creditors who will not generally be aware of the proceedings - because the creditors are not notified by the court or the liquidator. In order to file a claim in the insolvency proceedings, an application has to be made to the court - in Romanian with supporting documents in Romanian and a tax paid to the court.

    I agree with other postings that South Pacific were/ are a reasonable developer and have tried more than most developers (Planorama was appalling since 2007) to find solutions but banks in Romania are still "pretend"-lenders and their parent banks are keen to reduce rather than increase exposure in the residential property sector. South Pacific also, allegedly, paid a big commission to a certain agent, based on the full value of the property, so a big chunk of the deposit funds went to the agent and the agent was knowingly selling the properties at next year's prices. As a result it is no wonder that the developers went into a tailspin with the financial crisis from October 2009 onwards.
     
  9. Nicola BSN

    Nicola BSN New Member

    Shape

    Your first post - yes of course it's me. I'm the only Nicola living in Spain - didn't you know that?

    As for the second post - wrong again! As I said, our lawyers are in negotiations with South Pacific and I'll post more later when I have a bit more time.
     
  10. paulausta

    paulausta New Member

    Insolvency Procedure - South Pacific

    Hello,

    I am struggling to decide if i should invest more money and be part of the list of creditors. Lawyers from Romania, recommended many years ago by MRI, want 2500 euros for the case. I was wandering if someone could contact me and advise on the cheaper lawyer they've taken?I believe the same cases with the same layer make it easier for both sides...

    Thanks in advance
     
  11. pash

    pash New Member


    For some reason i cant pm you.....

    Maybe if you could send one to me it will let me reply...

    Cheers

    Pash
     
  12. pash

    pash New Member

    adelaidebucharest


    Wont let me pm you....

    Maybe if you send me one i can reply to that....
     
  13. paulausta

    paulausta New Member

    I'm a new member so you can't PM me yet:( can i give out e-mail address on this forum?
     
  14. Veronica

    Veronica Administrator

    We do not recommed giving email addresses as spam bots trawl forums such as this for email addresses which they then send tons of spam mail to.
     
  15. Shape

    Shape New Member

    Ana Danielescu at South Pacific indicated today that there is no transfer offer in relation to Avalon, as they do not yet have permits for the site, which are not expected until August -September 2011. Even then, their strategy will be to find new buyers for Avalon in the first instance and only offer "rollover" investment deals if they cannot find new buyers.

    The only "rollover" offer was an offer for Adelaide buyers to rollover into Sydney which was made to buyers at the end of 2010.
     
  16. paulausta

    paulausta New Member

    Thanks Pippin! You're right I would be flooded by spams if I'd post my e-mail! I better write 5 posts:)
     
  17. paulausta

    paulausta New Member


    I never received an offer to 'rollover' from Adelaide to Sydney! Was it SP who contacted you regarding this? It's such a shame but it's too late now...
     
  18. Shape

    Shape New Member

    We contacted South Pacific to verify the information posted by Nicola. South Pacific did not say whether a transfer to Sydney is still possible, but, if it is (and it is not excluded as the development company retained the right to administer the company for the time being), the question would be whether you are in a position to complete the purchase and what the price would be.
     
  19. paulausta

    paulausta New Member

    Yes thanks Shape. After contacting SP I know the rollover is still possible but the cheapest apartment is a double price what I originally wanted. I will be joining the creditors list.
     
  20. tomas

    tomas New Member

    It's really interesting to read the comments from the people here on the forum.
    I do have some experience with South Pacific and know some about the situation of their developments.

    We have brought South Pacific in front of the court related to an investment. Yes, we won in court. The insolvency of the SP development gave us however some new challenges.

    I read on this forum that SP might restart construction of some developments even if they are in a insolvency process. This will not happen. From a legal point of view, even if South Pacific may intend to resume construction works, at the present time there is no possibility for South Pacific or anyone else to propose such an action. The law stipulates that the steps in the insolvency proceedings have to be carried in a certain order, so SP can't do anything when the insolvency proceedings have started.

    I do have some free advices for you all, and I would like to say that I don't care whether any of you believe in what I am writing:

    1. Don't listen to anyone that have had relations to MRI. MRI and their representatives are incompetent. If you have done transactions with them you might get problems with romanian tax authorities. We have had our share of problems, so I know from our experience.
    I understand Nicola is a former MRI-connection, so my advice, is to not listen and trust what she say.

    2. Don't choose lawyer because he or she is cheapest. If you should have any hope for a good solutions on your problems, you need a good lawyer. My advice is to go for a reputable local lawyer. I know, because we have used a bigger law firm with very good lawyers, and they have won all their disputes with SP in front of the court.

    3. Don't believe South Pacific in all they say. Our experience is that they show no respect for a written agreement unless it's in their interest. I don't consider South Pacific to be reputable and serious company / group, and I would think twice before making investments with them again.
     
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