Mar 11 - Government Hit with Fresh Legal Proceedings
The Government has been served with further proceedings relating to a GSD housing development, following another set of claims last week.
The claim, seeking liquidated damages in the sum of twenty seven million six hundred and eighty eight thousand pounds (£27,688,000.00), and further unliquidated amounts, is in relation to the development of the Waterport Terraces housing estate by the former GSD administration. The claimant is the liquidator of a subsidiary of Bruesa SA, the first construction company that the GSD administration contracted to build that estate as well as the Mid-Harbours Estate.
The subsidiary of Bruesa, named "Gibralcon 2004 SA" (which had originally been named "Brues y Fernandez Gibraltar SA"), appears to have been created as a special purpose vehicle for the Gibraltar projects that were being undertaken by Bruesa.
The claim has been issued in Madrid in the Spanish "Juzgado de lo Mercantil No 5". The defendant is the Government affordable property development company, GRP, who will ‘be vigorously defending the action and is contesting that the Court in Spain has no jurisdiction in respect of the alleged claim,’ a Government spokesman commented.
The Chief Minister further added, ‘this is the third case which is a hangover from the previous administration that we are left to deal with, but that will not distract us from continuing to deliver on our own manifesto commitments.’
