Saturday, February 27, 2010

Association for the Affected of Trampolin Hills

You will find the presentation in English of the Association for the Affected of Trampolin Hills in the new web site:
Please take time to join the Association!




I.- The Company “Trampolin Hills Golf Resort, S.A.” has been declared in necessary bankruptcy proceedings.

II.- We have partial knowledge of the Decree of Bankruptcy Proceedings through transfer of copies and verbal information of the situation of reclassification of the land.


1.- Trampolin Hills has had inscribed in their name various plots of land, which are part of the total building land, which are not mortgaged, but with various embargoes for a total of over 2.000.000 €.

2.- There are other plots which are located within the boundaries of the Project, acquired by means of private contracts, the amounts due to be paid by Trampolin Hills being unknown.

3.- There are between 1400 and 1700 off plan sales contracts to buyers, for which some (an unknown number) have applied for the rescission of their contracts.

4.- The definite reclassification of the land is awaiting final approval by the Town Hall of Campos del Rio.



In the case that all or a majority of the buyers of properties apply for a rescission of their contracts because of breach of contracts, there is no doubt that they would obtain a favourable resolution by the Courts, although we must examine the consequences.

It seems that the sums received by Trampolin Hills for the planned construction amounts to the quantity of some 50.000.000 €.

This option implies the loss of rights to allotments of property and to the obligations of construction of the home.

The quantities paid would constitute ordinary credit in the bankruptcy, or even subordinated for those who have not communicated their credit to the Courts within the legal time limits.

In the case of a massive application for rescission of contracts by the buyers, we believe that the Bankruptcy Administration (trustees in insolvency) would not take any steps towards paying and acquiring the plots bought through private contracts, because, probably, they would need to spend money that Trampolin Hills does not have.

The final approval of the reclassification would need to be applied for by Trampolin Hills, now directed by the Bankruptcy Administrators (trustees in insolvency), with no certain knowledge that these would present the petition, as ownership of all the plots included in the Project is still not at their disposal.

According to evaluations presented by Trampolin Hills, the value of the land without reclassification amounts to 6.091.195,11 €, and with reclassification, to 85.939.990 €, although one should take these evaluations with reservations, as they have been presented by the insolvent company.

If there is not a possibility for an agreement with the insolvent company, one would proceed to an ordained settlement of assets, and in the case that this is not possible, to publicly auction off the property. In the current property market situation, we think that the land, even if reclassified and sold ordinarily, would not cover the debts. No need to say the same if sold by public auction.

Of the obtained sum, the privileged credits would be paid first, followed by the ordinary and subordinated in legal proportions.

All this will take its time, the uncertainty of the sums which might be obtained, with the certainty that, if the land is not reclassified, the ordinary and subordinated creditors would practically not obtain anything.

We advise against the strategy of massive application for rescission of the contracts.


The preliminary steps are that the Bankruptcy Administration (trustees in insolvency) acquire the plots which have not yet been inscribed, which are located within the boundaries, and the subsequent final approval of reclassification, which presents the difficulties described in the previous point A.

A condition without exception would be that the mentioned application of allotment is presented by a sufficient number of buyers who, communally, could carry out a significant part of the Project. This would require a substantial number of buyers.

The allotment would be asymmetrical, because there are buyers who have paid sums of less value than their theoretical plot, and others who have paid quantities much larger than that value, which would mean a complex elaboration, which could only be done and decided by the Bankruptcy Administrators (trustees in insolvency) and approved by the Bankruptcy Courts.

If allotment were obtained, the buyers would have to form a Co-Ownership, to build, or a Cooperative, compensate the financial unbalances amongst each other, act themselves as developers of the project to be carried out, having to find the financing, contract engineers and builders, with a new project and new budgets for building.

We advise against the strategy of applying for allotments of coefficients of building plots, because of its complexity and improbable success.


For this it is necessary to have the approval of creditors which represent more than half of the total credit; that is some 25.000.000 €.

The agreement would need to include the following conditions:

1.- Definite commitment on behalf of a financial entity, subject to the condition of approval of an agreement, to grant a sufficient credit to Trampolin Hills for starting the construction.

2.- Acquirement of the plots still awaiting deeds.

3.- Final approval of the reclassification of the land.

4.- Starting again the construction on behalf of Trampolin Hills, subject to the following conditions:

a.- Subscription to an Insurance Policy which guarantees the devolution of the quantities already paid and to be paid by the buyers, as established in the First Additional Resolution to the Construction and Development Act.

b.- Contracting, in charge of Trampolin Hills, of a Technical Office for construction control, without whose approval bills could not be paid or certificates of construction issued, neither by charging bank credit nor by charging quantities paid by buyers.

c.- Establish a control of disposal of funds on behalf of the Administrators of Trampolin Hills.

Because the mercantile legislation impedes the limiting of the functions of the Administrators of companies, it would be convenient to introduce in the agreement a prolongation of the intervention of the Bankruptcy Administrators, whose signatures would be needed for any act of disposal by the company.

The inconvenience of this solution is that we would have to continue dealing with the responsible members of Trampolin Hills, but the advantages would be that they would be totally controlled and that the conditions of price established in the contracts would be respected and, in the case of a new failure, the quantities paid would be covered by an Insurance Contract, with certainty of recovery independent of a new insolvency situation or of breach of contracts on behalf of Trampolin Hills.


The possibility has been commented of another developer willing to buy the credit from the buyers, offering as exchange the sale of another home in another urbanization. This possibility should not be rejected blankly, although the new developer should respect the following conditions:

1.- Respect the final price of each home.

2.- That the urbanization is situated in an acceptable location for the buyers.

3.- That the types and qualities of construction should be equal or similar to those of Trampolin Hills.

4.- That there is an offer of insurance which guarantees the devolution of the quantities already paid, or to be paid, in case of breach of the contract.

And to thus inform, we release this report upon petition of and in the interests of the Association for the Affected of Trampolin Hills, while awaiting other better documented.

Barcelona for Murcia, 18th of February, 2010

Jaime Olaortua Ugalde Emili Moragas Freixa.


Friday, February 26, 2010

Buyers on TV

Representatives from the newly formed Association for the Affected of Trampolin Hills and from the group Buyers for the Building of Trampolin Hills met the media at the Trampolin Hills site in Campos del Rio yesterday. They explained our problems to a reporter from an English newspaper based in the Torrevieja area and to two reporter teams filming for the main local TV channel and for Spanish national TV. Whereas the national program will focus on golf resorts as a means of attracting tourism, the main theme for the local program will be different cases of swindling, Both programs will appear in about three weeks and both teams promised to make known the new web site of the Association so that affected who have not yet been aware of the Association, and others, can find more information on internet.

At the site we found that the doors to the show homes, which had been closed with bricks after the complaints in December have since then been reopened. The houses are now robbed of all windows, electric switches, bathroom and kitchen fittings. We will send in new complaints to the bankruptcy administrators, asking them to report the robberies, notify the insurance company and have the doors and windows closed again. At the office building the glass in the windows had been broken. We feel that this is a sad and meaningless waste of resources.

We now need that a majority of the buyers join the Association so as to put pressure on all parties to cancel the bankruptcy and have the building started as soon as possible. We have heard that the Judge who sentenced the bankruptcy on behalf of a company which the Trampolin company owed 30 000 € (a sum which even seems to have been paid in the last minute) has since then admitted that the decision was rushed. The bankruptcy seems to have been easily avoidable and is now affecting approximately 1500 buyers. All estimates point to major losses for these buyers if the bankruptcy is maintained. The more responsible approach would have been to help getting the project approved and started and this is what the Association now will ask the authorities to do.

Wednesday, February 17, 2010

The presentation of the Association for the Affected of Trampolin Hills in the new web site

You will find the presentation in English of the Association for the Affected of Trampolin Hills in the new web site:
Please take time to join the Association!

Friday, February 12, 2010

Association for the Affected of Trampolin Hills

This is the new form for those who wish to join the Association for the Affected of Trampolin Hills. It must be printed out, filled in, signed and sent by regular email. As a member you will be updated with all important news by email directly from the Association so you do not need to follow any forums if you do not have time. The more members, the better our chances for a beneficial solution for all. Please join.
Thank you.

Thursday, February 11, 2010

Summary of the meeting in Campos del Rio

An estimated 200 people attended the meeting which was initially meant only for members of the Association, but which permitted access to the media and to all those who wished to express an opinion, even those who are not within the group of affected, such as lawyers and representatives of other building companies, interested in business agreements. The founders of the Association had also invited two specialists in bankruptcy cases who had traveled from Barcelona and were well informed of our situation so as to be able to answer any questions from the participants. These two solicitors outlined three main solutions to our situation.

1) Bankruptcy.
According to their estimates, the worst of the three possible solutions would be completing the bankruptcy procedure, which would lead most probably to an auctioning off of the land at a very low price considering its present state as rustic, non-urban land. They claimed that although the town hall has promised the approval of the final building permissions, they are obliged to consider the situation of their municipality as a whole and particularly the current regulations which set limits to the extensions of urban land provided for. It would therefore be very likely that the town hall might be reluctant to approve a large increase of urban land in a specific area, unless they have a certain guarantee that building will actually take place. A local lawyer who represents some of the affected in a criminal case, as well as in the bankruptcy case, argued over this, claiming that the town hall has promised to approve the building permissions, with or without guarantees, so that by the time the land would be on auction it would already be urban. However, all the solicitors as well as the affected seemed to agree that an auctioning of the land as a result of the bankruptcy would in any case be the worst possible solution for all the affected. The estimates as to how much of our money would be returned to us in this case went as low as 1%.

2) Alternative projects.
The two main alternatives to the bankruptcy would both be based on agreements with the bankruptcy administrators so as to cancel the bankruptcy. Negotiations have already been initiated, and the Association has been legally formed, mainly so that our representatives can take part in the negotiations of any such agreements. Several options for building on the land based on alternative projects were also discussed at the meeting. A building company, who had previously approached the bankruptcy administrators, offered the affected new contracts, with discounts based on the sums already paid, in a planned urbanization in the nearby village of Fortuna. Brochures were handed out to some of the participants but the solicitors commented that any such offer would have to be thoroughly considered after being set forth in detail. Another idea on similar lines, which was discussed briefly at the meeting, was the allotting of individual parcels of land to each affected buyer according to the sum paid. The abovementioned local lawyer seemed to support this idea, but the solicitors specialized in bankruptcy matters warned that the outcome of such an initiative would be uncertain, as it might end in failure after very long and complicated negotiations involving each of the 1600 contracts presented to the bankruptcy administrators. An attempted solution along such lines would then only benefit the lawyers involved.

3) Trampolin Hills.
The solution which, according to the two solicitors advising those who attended the meeting, would be most beneficial to all affected, would also be the simplest to negotiate with the bankruptcy administrators and the town hall. This solution; building based on the current project, inevitably involves the Trampolin Group, which are still negotiating the financing of the project. The only major obstacle to such an agreement seems to be distrust, partially due to the abovementioned criminal case and strongly expressed by some of the buyers, leading to reluctance to sign a new contract with the same company. However, the Association would consider such an agreement, because it is clearly the most beneficial for all affected, on conditions which aim to give the buyers all the guarantees they should have been provided with from the start and now need more than ever. In this event the Association would hopefully be able to coordinate our demands to reach a best possible agreement. However, the final approval and signing of the agreement would be up to each individual buyer.

Whichever of these three main solutions we end up with; unifying our voices by means of an Association will greatly improve our chances of getting heard. The meeting held showed clearly the democratic and open spirit of the founders of the Association. As for legal advice, which will be of utmost importance for the Association, the abovementioned local lawyer who is already involved in the criminal case against the company, offered his legal advice free of charge by the end of the meeting. Although this advice was not rejected by the founders of the Association, there will most certainly be additional advice from independent specialists on bankruptcy cases.
A local newspaper, reporting on the meeting, quoted extensively one of the most critical voices among the participants, an affected who is also an estate agent, apparently having sold some 80 properties for the Trampolin Group. He claimed that the founders of the Association are trying to profit from the situation and that the affected were opposed to being asked to pay an admission fee of 24 €. We feel that the admission fee is a very small charge considering it may lead to our achieving the best possible solution for everyone on the best possible terms. We therefore urge all affected to join the Association and keep up our hopes of a good outcome despite the major problems we are facing.

Thursday, February 4, 2010

Directions to the meeting of the association

Please see the new link for directions to the meeting on Sunday 07/02/2010, which will start at 12.30 in the "Sala de Usos Multiples" next to the "Colegio San Juan Bautista" school in Calle de las Escuelas, Campos del Rio. We hope as many buyers as possible can attend. This meeting will be open to members and those who wish to become members only. You should bring contracts and any other relevant documents.