Bulgaria Dreams Destroyed for Large Number of Irish Property Investors

Business | February 12, 2009, Thursday // 00:00| Views: | Comments: 6
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A large number of Bulgaria property investors from Ireland have been hit by the news that the UK-based agent specialising in Bulgarian properties, Bulgarian Dreams, has gone bankrupt, apparently due to the affects of the global financial crisis, the Irish Times reported Thursday.

Bulgarian Dreams, which once claimed nearly 30 per cent of its customers came from Ireland, has ceased trading, shortly after it featured in a critical BBC documentary.

The company has blamed "extraordinarily difficult economic conditions" for its demise.

In January 2008, the Association of International Property Professionals said it expelled the company for breaching the association's code of conduct. At the time, Bulgarian Dreams claimed it had not been expelled but had resigned some time earlier.

Exactly how many Irish customers of Bulgarian Dreams are affected is not clear, but Sofia-based lawyer Milen Hristov, who is filing claims on behalf of aggrieved customers, said he had received inquiries from a number of Irish purchasers.

Bulgarian Dreams marketed a number of its developments in Bansko, Pomporovo and other Bulgarian locations at property exhibitions in Ireland in recent years. Bulgarian apartments were popular with investors seeking low-price entry into the overseas property market and fast growth rates.

Earlier this week, the company featured on BBC's Watchdog programme, which said it was aware of 80 customers whose apartments remained uncompleted.
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» To the forumComments (6)
#6
resipsaloquitur - 25 Feb 2009 // 01:24:15

Hello Dutch,

You should NOT be so pesimistic...plenty of complexes were built on the Blac
k Sea Coast and in the Bulgarian mountains.


Two years ago I had had a case of Irish purchasers of flats in Sunny Beach.

The complex MIRAMARE was completed...the problem was that the developer

did not deposit the promissed "rents" on the account of the flat owners.

Either he was NOT able to rent them out during the summer months or he could

not collect €8000,. as he was expecting.

Anyway,such cases of REIT(Real Estate Investment Trusts) when the investors

deposited initial payments but the company was not able to complete the

buildings,happen NOT just in Bulgaria.

Many yeras ago we had a case of German developer(Baufirma),who collected

funds from German investors but was NOT able to finish the hotels in

Punta del Hidalgo,Canary Islands.

Not because he embaselled the funds but because he miscalculated the costs for construction materials and the rapid increase of the

labor costs in Spain.

#5
Dutch - 24 Feb 2009 // 12:13:39

"they deserve it"

Partly they indeed deserve it, although I also feel quite sorry for many people who thought they were investing in a nice summer/retirement residence.

I know many of the scam artists who called themselves "real estate specialists" and I have never met a slicker bunch than them. I would not trust them with 1 single stotinka of my money. I have witnessed with my own eyes and ears how unknowing people were talked, in a very obvious slick way, into buying something. I have tried to warn some people, but angry reactions were my share time after time. So I quit doing it as I came to understand there's no sense in warning naieve people hunting a fabulous beautiful picture drawn by scavengers, while in reality the picture is nothing but just one big bubble with stinky air inside.

What I totally don't feel sorry about is that many of the self proclaimed real estate specialists went down (and hard) as well and now are jobless, whether here in Bulgaria or in the UK. The way many of these real estate a'ho's settled within BG society is below anything.....for starters the majority not being able to speak Bulgarian and behaving very arrogant in many other ways. For those....I'm happy they are already gone or leaving.....Bulgaria is better of without them.

#4
resipsaloquitur - 24 Feb 2009 // 01:05:37

Dear Mark,

OF COURSE the attorneys want you to spread the word so that they can get more

clients and MORE clients means higher fees.


What the solisitors did not tell you is that if a company files for

bankruptcyprotection

(American law) or INSOLVENCY(British term) the creditors can not sue it for the

poeriod the Bankruptcy Court issued the protection order.

What does it mean "associated " Bulgarian developers?

Is the BULGARIAN DREAMS a daughter company of the BG Developers?


In case Bulgarian Dreams files for desolution(winding up of a company),
the creditors will be satisfyed from the remaining assets if there are some.

Keep in mind there is a PRIORITY Principle and the BANKS get as first their loans.

Anyway,in my opinion it will NOT bring anything to start a long,timeconsuming and

COSTLY trial...YOU WILL JUST MAKE THE SOLICITORS RICH.

My advice is to collect additional funds and convince the LENDERS(BANKS) that

the complex MUST be finished.

This is ALSO in their interest as they will receive morgage payments +interest.


I do not know the details of your case but usually in Insolvency the creditors go

EMPTYHANDED!

The solicitors do NOT want to rescue the company...they want to disolve it ,so that their clients get their deposits back.


Regrettably WHERE IS NOTHING THERE IS ALSO NOTHING TO GET!

That is how it works in US and in GERMAN Insolvency Courts.

#3
avro - 23 Feb 2009 // 20:17:23

Is it that you do not like the Irish, or you don't like investments in Bulgaria?

avro

#2
Livy - 23 Feb 2009 // 17:57:20

Hi

I feel it is important to give people some feedback to a Seminar I attended on 21/2/09 with 23 other Bulgarian Dreams purchasers and The International Law Partnership LLP Solicitors.

This was following information posted on the BBC Watchdog website and advice given by the AIPP.

Just to make things clear this post is advice only. I am a purchaser in Phase 3 of The Orchard, Bansko who is at a loss as to what to do next following Bulgarian Dreams collapse. I am not an agent/promoter or legal representative but just an individual that has invested a large sum of money that seemingly has been lost or so I thought.

I found this seminar both enlightening and concerning but ultimately has given me some hope that I may be able to persue legal proceedings against either the now defunct Bulgarian Dreams or their associated Building Developers.

There was a turnout of 23 people plus a further 13 that couldn't attend all of which have invested in Bulgarian Dreams Developments throughout Bulgaria including The Orchard myself.

Mr John Howell (Senior Partner) and Ms Lyubov Jones (Bulgarian Solicitor) held this seminar at their offices in London and are going to act on our behalf as a collective in the first instance and then as individual groups following their initial findings in 6 weeks time.

They have asked each person attending to post on as many relevant websites/forums that we use to get other owners in a similar situation to contact them and to instruct them to act on their behalf.

There is a fee but this will be reduced the more people that instruct them.

If you are in a similar situation as we are whether it be Phase 1 full payment made, awaiting Act 15 or initial deposit on an apartment in Phase 3 there is still hope and options but you must act quickly.

There is too much to explain from the meeting to put in this post surfice to say the longer we sit on our hands and hope for the best the worse it will get.

I hope this helps in some way.

Good Luck

Mark

The International Law Partnership LLP contact emails are

Mr John Howell pe@lawoverseas.com
Ms Lyubov Jones lmj@lawoverseas.com
Hanneri Swanepoel hsw@lawoverseas.com

Website www.lawoverseas.com

#1
pk - 12 Feb 2009 // 19:58:21

Thats the best news Ive heard all day-they deserve it!

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