Out of interest when a developer leaves the country and his debts behind why can't his local sponsor/partner (who owns a majority holding in the company) be persued by the debtors?
Nope as they don't own the liability. But investors can takeover the project if that helps.
Not residential as far as I know but it's happened on hotels."But investors can takeover the project if that helps".
I have heard this before, but cannot really imagine how it would work in practice.
Apart from getting 100% of the investors together (which surely would be required),to sign up etc, from every part of the world, how then does it work with required certification from government.
A group of investors don't hold permits to build, or what I would imagine, to be 100's of other specialized documents, necessary by law for building a tower block.
I mean, I'm not disputing the possibility in theory, but is it really feasible?, has it ever happened yet?
My hunch is that if the local sponsor is the 'Sleeping Partner' of the company ,then as Propguy said ,there is usually a written document signed stating that he is not responsible for the Company's Liabilities .