Following the ruling that condemned the City Council to pay Cieza Golf SA the amount of 600,000 Euros plus interest and costs of the second instance, an out-of-court agreement was reached whereby the company "reduced" 201% of the principal and waived the interest and costs, in addition a part of the amount to be paid would be offset with other debts that the company had with the council.
According to a statement from the Finance Department, the agreement has been approved by the Commercial Court of Murcia, as the company's bankruptcy proceedings required the creditors' consent and the corresponding judicial authorization. Therefore, once the payment is made in the coming days, this legal episode, which was a major setback for the City Council, will be concluded, though its impact has been considerably mitigated.
Antonio Martínez-Real, the Finance Councillor, recalled that this conflict originated during the period when the previous Popular Party administration was busy signing urban development agreements, committing to deliver what it didn't have, partly because it wasn't even under the jurisdiction of the local government. This was a development model that time has proven unsustainable and which has only led to one failure after another. In contrast to this development model based on speculation, the current administration prefers to focus on a productive economy, attracting businesses, strengthening the industrial sector, supporting shopkeepers and restaurateurs, boosting tourism, showcasing our heritage, and continuing to work for agriculture by developing the Protected Geographical Indication (PGI) and improving infrastructure.
This ruling adds to the many others that this Government has had to face, such as the V6 case of 5 million euros, which in this case has been resolved better than the ruling initially reflected.
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