Following on from our recent article relating to the court battle between the two Anfi shareholders Lopesan and Santana Carzola Group, the judge reviewing this case has endorsed expert reports submitted according to which the debt of two Anfi companies being Anfi Sales SL and Anfi Resorts SL amounted to €56.6 million in 2020, with no margin for new loans or for refinancing or any feasible way to clear them.
The Commercial Court number 1 of in Gran Canaria has agreed this week the declaration of the necessary bankruptcy for both companies. Apparently Santana Carzola Group has stated they will appeal to the Provincial Court, although this will have no affect on the judgement.
Judge Alberto López Villarrubia
Judge Alberto López Villarrubia, the presiding Judge formally accepted the request made last year by the company Isla Marina SL, which is also a Lopesan subsidiary and furthermore is one of the creditors of Anfi Sales SL and Anfi Resorts SL from whom they claim they are owed around €30 million. The judgement also suspends the Santana Carzola Group powers of administration of the two companies. Administrative powers will now pass to the appointed administrators, Par Conditio SLP
In the procedure, three expert reports were provided on the situation surrounding Anfi Sales and Anfi Resorts, made by José Manuel Arias, Sergio Roque and Addvante Forense & Concursal SLP. In summary, in his order the judge agreed and endorsed the reports. The reports highlight the lack of liquidity and solvency of the two companies.
The reports also state that in 2019 the Anfi Group requested additional bank financing to refinance their debt. This request resulted in a negative response. As stated above, the aforementioned expert reports estimate that the debt amounted to €56.6 million, having been refused new bank financing there is not enough money in the “pot” to settle outstanding debts, hence we arrive to where we are today.
Whilst Santana Carzola Group cited the property assets owned by the Anfi group the judge concluded that although the company was certainly asset rich it had insufficient liquidity to service current debts, hence the judgement.
Illegal contract court judgements
Part of the financial problems surrounding Anfi have been generated by the vast number of court judgements passed against them in relation to the sale of timeshare contracts which were in direct contravention of Spanish law. As far as we can understand from major law firms representing clients, this latest development will have no bearing on awards confirmed.
Anfi have gained notoriety for their lack of action relating to settling court orders against them using every possible legal trick in the book to not pay. Leading claims firms M1 Legal and CLA have already placed contingency plans with the courts and if anything they feel the current action may well be to the benefit of claimants awaiting payment.
Can I still claim?
For now the answer is yes. If you have an illegal contract with Anfi this may be your last chance to have your case legally presented, the only difference is that claims will no longer be lodged with the Civil Courts but rather to the Mercantile Courts in Spain. Naturally when any entity is finally wound up this will preclude any further action so our message would be to act sooner rather than later.
Where does this leave Anfi timeshare owners?
It must be remembered that the two Anfi companies in question were only sales companies and not responsible for ongoing ownership. In essence, for owners, nothing has changed, for now. Subject to availability and maintenance fees being up to date you may holiday as usual, Covid restrictions permitting.
Our comment
Not before time would be our first take. Ever since the first court judgement against Anfi in 2015 the company has systematically defied bona fide court orders to settle monies rightfully owed. In the past their dirty washing was contained within the four walls of the boardroom and because of the “Golden Share” on voting rights given to Santana Carzola, even if they wanted to Lopesan could not force the issue to settle at board level as they had no effective voting rights.
This development now removes Santana Carzola from any further interference as the Administrators; Par Conditio SLP will now be reviewing all debtors and claimants.
Lopesan are a well respected hotel brand and have made no secret of the fact that interests in timeshare have never been part of their business model. They currently have 21 hotels in the group and apart from Anfi no other hotel has any timeshare owners so Anfi is a sort of square peg in a round hole. Interestingly Anfi is not included anywhere in their portfolio.
On the whole Lopesan hotels are well respected with 4 and 5 star properties and good tourist reviews. One must feel for them in as much as the Anfi situation can do nothing but tarnish a healthy reputation in the tourism industry; this must be worrying for them. Our thoughts would be that it might be a sound idea for Lopesan to engage in a hostile takeover to once and for all remove Santana Carzola, they could then do what they do best, offer the Anfi resorts as 5 star hotels and over time shut the timeshare division completely.
We are certain that this court case, instigated by Lopesan, is part of their corporate strategy to “clean up” the reputation at Anfi created for the most by the underhand business tactics of Santana Carzola. We think all would agree that it’s a very rare case where two 50% shareholders face each other in a court of law with one aggressively attacking the other.
If you are an owner at Anfi and anything contained in this article has caused concern please feel free to call us, we would be delighted to assist.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk