One year after!!!

AIFOS´s REPORT (general part for all the Ley 57´clients)


BEFORE BANKRUPTCY

From many years ago Ley 57´s Lawyers are fighting against AIFOS to recover buyer´s money.

Before July 23rd 2009, (date for bankrupcy declaration) we had different situations in our claims against AIFOS.

100% of our clients, in the last 8 years, got a verdict to obligate AIFOS to refund the money invested. Many of the clients got the money back (until end 2007). Many other cases started then, but the economical situation of the company was poor, and, today, several clients are pending to get their money back.
Aifos is currently in administration and faces some 900 legal claims for properties.

The owner Jesús Ruiz Casado and three directors also face charges in the Malaya corruption case.

Depending on each case, the way to proceed has been different, but, all cases had in common the fact that, if there not exists any Court resolution breaking the contract, the buyer is not a proper creditor.

If the contract was still running with AIFOS, the buyer was obligated to continue the payments, and, maybe, to take a mortgage over the original amount agreed with AIFOS or to wait and uncertain period to receive the apartment. Sometimes AIFOS tried to sign the deeds even without first occupation license. (In other cases they never started to build).

According to the Spanish Bankrupcy law, any credit pending to get a Verdict from any Court is considerated as “contingente”. This means the credit is being discussed.




BANKRUPCY DECLARATION. EFFECTS.

Today we have two Court for Company matters in all Málaga Province. Unfortunatly the second one was created after AIFOS Bankruptcy started, so, the Court (nr.1) was collapsed, and still is. This means any case in Court nr. 1 is going extremely slowly. (We cannot do anything regarding this matter). Today Court nr. 1 has two different Judges, but still going slowly.

Last year, (July 23rd) Commercial Court Nr. 1 declared AIFOS in Bankruptcy. This order had effect not only in the running contracts but also in the running Court claims.

Originally the Court condiser the Bankruptcy as “Voluntary”. This means AIFOS is still on bussines and they keep the same administration with some limits.

The Court named three administrators for supervising AIFOS´s Activity.

We (Ley 57) don´t agree with this decision but the law does not allow any appeal. We consider AIFOS cannot be managed by this way. We consider the Bankruptcy is “guilty” so we did an application to change AIFOS´s administration system. We try to take the current administrators away, so the Judge should name three other administrators on their places.

This aplication has not been answered yet.



ABOUT THE COURT ADMINISTRATION

Last year, 1 lawyer and one economist from Price Waterhous Coopers were named as Court Administration. This firma had previous economical relation with AIFOS and The law does not allow this.

Unfortunatly, the appeal against this decision was decided just a few months ago. The Judge recognized the mistake, but he considered to take them apart could have bad consecuences to the company as many time had passed and to name anothers administrations could delay the case much more.


Court adminisntrator´s fees were fixed in more than four million euros.

Even this fees could be agreed according to the law, we consider that amount as excessive. This matter is also pending to be decided in the corresponding apeal.

Court Administrators and AIFOS´s Administrator represents (together) the company.

The main obligation for the Court Administrator is to do a report with the general Aifos´s situation.







ABOUT THE COURT ADMINISTRATION´S REPORT (C.A.R)

C.A.R was done in Febrary 2nd 2010.

We consider this C.A.R. does not include the real AIFOS situation, as the report had several mistakes, and empty spaces, so we did a general complaint against the report on all our clients behalf, and also an individual complaint to move the individual credits to the best possible position in the creditor´s list (depending on each particular case).

In the general complaint we denounced to the AIFOS Court administration the 19 mill. Euros payment that AIFOS did to ZIUR just one year before the bankruptcy. Also we denounced the “empty spaces” in the report and the wrong information regarding AIFOS situation.

In the individual complaints we reported to the Court Administrators the real individual credit and the individual position in the creditor´s list.

No one of this complaints has been decided by the Judge, who have around 900 complaints pending to be solved.

We also requested from the Judge the declaration of this case as “guilty” in order to transfer the responsibilities to AIFOS´s owners. AIFOS´s owners have also the responsibility to refund your money

This is also still pending to be decided.




Apart from these complaints, Ley 57´s Lawyers took several iniciatives in order to protect all the creditor´s interest.

These Iniciatives are:

1) The Bankruptcy should be considered as “guilty”.
2) Return of the moneys paid to ZIUR from AIFOS.
3) Representation in ZIUR´s Bankruptcy.
4) Meetings with Court Administrator.
5) Trial against Mr. And Mss. Ruiz Casado.


1) The Bankruptcy should be considered as “guilty”.

When a Bankruptcy is considered “guity”, the company´s administration could be obligated to refund the money to the creditors.
We consider AIFOS case is one of the most evident cases to get this grade.
As we cannot do it alone, we asked to the Court Administrators to apply for this calification.

2) Return of the moneys paid to ZIUR.

During 2008 AIFOS paid to ZIUR 19 mill. Euros to cancel “debts”.
We consider this payment is a fraud, so we started a criminal case against Mr. ruiz Casado and wife.
Court nr. 3 in Fuengirola considered this was not a criminal matter, but we appealed this decision.




Nevertheless, we also started the civil way to get this money again into AIFOS´s patrimony.

3) Representation into ZIUR´s Bankruptcy case.

ZIUR (company of AIFOS´s group) has been recently declared also in Bankruptcy.
Ley 57´s Lawyers are now involved in that case, to defend ZIUR and AIFOS´s creditors.

4) Meeting with Court Administrators

We try to get first hands news regarding all the case, so we maintain flude relation with th Court administrations. We had several meetings with them .

Before end 2009, even before the Court Report, we went to see them. Then we discovered a lot of difficulties they had to do the report, due the non-cooperation from Aifos owners.

Also we met them in May in a conference they did together with Carlos Cómitre about Bankruptcies. We had the chance to speak about the case and to propose them some inciciatives, now pending to be decided by the Judge.

Last July we met them again to discuss individual cases. They are now studying the alternatives we proposed. We hope to maintain another meeting really soon to get an answer to our petitions.


5) Other criminal cases against AIFOS.

Also in July, there was a trial where Mr. Ruis Casado was involved. After 7 years from first denounce for swundeling.

Judge considered there was not a criminal case for this matter, as AIFOS demonstrated the intention to build all the apartments.

After this decision, we presented a new petition for “embargo” against the Ruiz Casado´s Assest, as a gatantee for Aifos´s creditors.

This petition is pending to be studied by the Judge.