Balchik Golf Heights – another struggling development?

Varna region is one of the last one standing against property developer’s bankruptcy. However more and more of them are having financial difficulties and thus causing failure on development deadlines and breaching buyers contracts. Balchik Golf Heights seems to have been affected by the financial difficulties too.

Buyers have been purchasing and legally guided by a big Spanish law firm. Normally it doesn’t make sense Spanish law firm to deal with Bulgarian laws. This has negative consequences to the buyer, namely preliminary purchase off plan agreements that have bad clauses for the buyers. Buyers were not provided with proper information and regular update on the development. There is huge lack of communication between the parties. Now the credit crunch have been suffocating the Balchik Golf Heights developers, buyers are thinking of fighting for their right fore refund. The deadline is way back the scheduled completion of the buildings.

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Balchik Golf Heights woes

Since the developer of Balchik Golf Heights was forced to insolvency procedure, the developer continues to struggle. It turns out that even the sole owner of the capital of Varna Estates Ltd. – KMB Best of Bulgaria Properties and Services Ltd. (company No 131280900) – has also entered bankruptcy procedure. This makes collection of any creditor’s money difficult since the court fees for the bankruptcy administrator for both companies has to be paid by its creditors. Both procedures have been stalled because neither the insolvent companies, nor the creditors are able to pay the court and administrator fees. The proceedings will be stalled for 1 year. If they are not renewed accordingly, the companies will be dissolved automatically by the court and nobody will get refund. Unfortunately this is just the beginning of mass bankruptcy wave of property developers that will follow.