Bankruptcy of Building Company

[debbieb]

I wonder if you could offer me (and 12 other English investors) some advice?

We have been informed that the Company that we brought property from has been made bankrupt (see *below). We brought apartments near Bodrum. Completion is now 2 1/2 years late. We owe the final 20% on completion, but our contract also had a clause for late completion penalties - 1% of the purchase price for each month it was late - therefore they currently owe us 29%

This bankruptcy notice was only spotted by a contact living in Turkey, so we brought it to the attention of our lawyer. But I am concerned there may also be a conflict of interest:Her firm paid the developer our final 20%s when we refused, so that he would complete, they then failed to get estimates, schedules, proper receipts, check work before paying and the money has been spent, with little progress made. She also previously has refused to chase the penalty payments, or offset them against the 20% and last week suggesting that her time is better spent chasing the Tapus, not bankruptcy, therefore I need impartial advice as we only have 20 days.

I was wondering if registering ourselves as creditors of the developer was a relatively simple matter ie me/a lawyer writing a letter to the court, saying I am owed x.  Or if there needed to be more paperwork issued with this claim at this time?

Also, we do not yet have our Tapus, they are still with the Landowner. Are they safe or are they affected?

I would be grateful for your advice. Many thanks D Burgess (UK)
----------------------------------------------------------------------------
* according to an article published in Sözcü newspaper on the 15th of November 2009 Yapi had applied for bankruptcy at Kadiköy Bankruptcy Court and its application has been accepted. All creditors are being asked to apply to this court with all relevant documents within the next 30 days.

[stopbanks]

I agree with you that we do not yet have our Tapus, they are still with the Landowner. Are they safe or are they affected....