PL have just released this statement regarding Fadesa
As you may be aware Spanish developer Fadesa filed on Monday July 14th, an application in the Spanish courts for administration following its inability to meet its debts on time.
Its subsidiary FADESA MAROC is company incorporated under Moroccan law and its capital is currently owned at 50% by the Spanish parent company now under administration. The other 50% is owned since January 2008 by the Moroccan building company Groupe Addoha, who has also overtaken the management of all activities of the company. According to the information provided by Addoha, FADESA Maroc loans are signed only with Moroccan banks.
Hence, FADESA MAROC is a totally separated company, subject to different legislation, with no further cross-linked activities or ties with the company under administration other the normal commercial activities related to specific properties.
The “Convention” and subsequent documents signed by the State of Morocco establish that FADESA MAROC (and not FADESA Spain) is the company holding all the rights regarding the development of the Mediterranea-Saïdia resort. Resulting from the above, the Saidia development as a whole is not affected by the situation of the Spanish company.
We are aware of that the insolvency of FADESA Spain and the future news on the ruling on this matter may create confusion among our clients, but as developers of several resorts within Mediterranea-Saïdia we want to point out that the current situation of that firm does not affect any of our developments.
Furthermore, our firm and our clients have an additional guarantee since the above mentioned “Convention” includes in its clauses the guarantee by the State of Morocco of all rights of the investors in the case that the “Master Developer” was insolvent (which as we mention above is not the case). This additional guarantee was one of the main points that made us decide in favor of Mediterranea-Saïdia as the destination of the investments of our group and their marketing to our clients.
