Polaris World requests more time to negotiate debts

The Polaris World property developer has made an application to the courts for a further three months to continue to negotiate its debts with its creditors. The request was made on Monday of last week, and if the court should agree to, it would mean that none of the company’s creditors could apply for court intervention during that period of time. Spanish newspaper La Opinión de Murcia, report that the final decision will lie with Murcia’s No.2 Mercantile Court.

Once the three months time has lapsed the company would be obliged to declare a suspension of payments if by that time they have failed to reach an amicable settlement with their creditors.

Polaris World announced in June 2009 that it was in talks to reduce its debt to the banks by handing over some of its assets in exchange.

The newspaper reported that this would essentially mean that the banks would then own a percentage of Polaris World’s six residential complexes in the Murcia Region, while the company itself would retain responsibility for the marketing and management of its apartments and hotel complexes.