Quote:
Originally Posted by Dotty
So when a company goes into the 1st stage of bankrupcy what happens to the peoples deposits because the news does not look very good according to Marben International?Also they are now clearly losing all responsibility of the construction if they are already trying to sell off the project and land and the 1,400 investors???
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Dotty
In the case of GNG. The reservation deposits are guaranteed by Barclays bank. The buyers will get their money back eventually but it is a long process in order to recover the monies under a bank guarantee.
Firstly for the bank guarantees to kick in, GS have to breach the reservation contract. (ie not get the license before the contract expiry date which is 12 months exactly from the date on the contract). They then have to be unable or unwilling to refund the money. Once this happens then the buyers have 30 days only to submit their refund request to Barclays under the guarantee and in time they will get their money back.
This is not ideal we know, but at least there are some assurances of getting the monies back if GS breach the contract. The problems really start if GS DO get the license before 22nd May, becuase if this happens buyers either HAVE to proceed to contract by paying monies over to a company in voluntary administration or lose their deposit (upto 12,000€ per unit) all together. Not a good situation!!!
Hope this clarifies the situation once again.
Thanks