Canarian Legal Alliance would like to inform you, that whilst it has not been officially communicated to us, we have been informed that court no 1 of the Mercantile Court in Las Palmas will be placing Anfi Sales SL and Anfi Resorts SL into administration.
It is important that we explain the consequences of an Administration order as this is NOT the same as a bankruptcy proceeding.
Even though the company is asset rich, both these companies have liquidity problems meaning they are unable to pay their current short term debts. This is the main reason why the Judge has decided to place both companies into Administration.
During the administration process, the company will be run by an independent court-appointed person called the Administrator. The main aim of the Administrator is to keep both companies operating and establish a financial plan to return both companies to a positive cash flow. Most companies look at it as an incubation period – a period where, through careful financial management and careful financial planning, the companies will be able to pay all existing creditors and build up a positive cash flow that will then enable them to move forward as a profitable business again.
The court-appointed administrator is obliged to send all creditors notification of the situation and make an exhaustive report on its financial operation in the past years.
This will give us a good insight into Anfi. Having full access and control over the financial affairs of the companies means the administrator will be able to see if cash funds have been “redistributed” to other companies in order to avoid paying any court awarded fees thereby supporting our previous claims for frustration of the enforcements.
Important aspects to highlight are:
- Anfi as a group has NOT gone into administration, only two of its subsidiary companies,
- The Anfi Group is STILL an asset rich company with a positive Balance Sheet, meaning the credits are SECURED
- As this was not a voluntary administration (not requested by Anfi themselves) they have the right to appeal this decision which they will do if they feel they have their own financial plan in place to recover from this current situation without the need for an administrator.
We have already emailed all our clients to inform them about if and how this could affect their case. If any clients did not receive our email you can contact us through our regular contact channels.
One extremely important point to make right now is to those Anfi members who have not yet instigated viable legal actions against Anfi for illegal contracts. We advise you to see legal advice immediately.
Whilst Canarian Legal Alliance with its highly experienced team is here to assess any possible claims and represent creditors in the mercantile court it is crucial to highlight that members have a limited time to seek legal representation and secure a better ranking for the credit distribution.