Aifos files for bankruptcy protection in Málaga

Aifos files for bankruptcy protection in Málaga
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By m.p. - Jul 22, 2009 - 7:37 PM
The Málaga-based property developer is said to owe more than 1 billion Euro to 2,000 creditors

One of the Aifos hotels forced into administration earlier this year – Publicity shot

The Málaga-based property development company, Aifos, has chosen to file for bankruptcy protection, although the company was previously in contact with its creditors in an attempt to avoid a formal suspension of payments. Sources indicated that there are some 2,000 creditors owed more than 1 billion €. Europa Press reports that the application is being processed by Mercantile Court No. 1 in Málaga.

The company spoke of the guarantees the move brings them in a statement released on Wednesday: construction of 3,000 homes contracted with clients and fulfilling other contracts, maintaining jobs for their staff, and allowing the company itself to continue its business activities. Aifos said it will also allow them to restructure the development group’s debt in the face of the real estate crisis.

Two Marbella hotels belonging to Aifos – the Guadalpín Marbella and Guadalpín Banús - were forced into administration earlier this year, with a claim from four creditors for debts amounting to more than 1 million €. Europa Press said the Byblos Hotel is in the same situation.

Aifos is one of the companies implicated in Marbella’s Malaya corruption case, which saw the arrest of company directors and the Aifos Chairman, Jesús Ruiz Casado, who EFE reports was released from remand after paying 500,000 € bail.

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