Bad news for Novo Banco, good news for him Richard Gere’s father-in-law. At least for now. The auction called by the Court of First Instance Number 31 of Madrid to try to find one or several buyers for five rustic farms property of Ignacio Silva Boots has been completely deserted.
None of the five lots in which the auction was structured has received a single bid, which is bad news for Novo Banco, an entity born in 2014 on the ashes of Banco Espirito Santo (BES), since with said auction it intended pay off a debt of almost 24 million of euros with businessman.
Ignacio Silva owes Novo Banco almost 24 million and the farms are valued at just over 50
Ignacio Silva Boots, economic vice president of Real Madrid during the presidency of Lorenzo Sanz between 1995 and 2000 and father-in-law of American actor Richard Gere, who married his daughter, Alejandra Silva, in April 2018, is not going through a good economic time. As El Confidencial advanced, in mid-June, the Court of First Instance Number 31 of Madrid resumed the auction that was suspended in September of last year in the framework of a foreclosure procedure urged by Novo Banco.
As various sources explained to El Confidencial at the time, an auction can be cancel if the debtor pays the debt or for exceptional reasons, such as errors of form in its publication or, for example, a state of alarm. On this occasion, the failure of the auction was due to the lack of interested parties in keeping any of these properties, five rustic farms Totally valued at 51.34 million euros.
The properties are located in various enclaves in the province of Toledo —Villarejo de Montalbán and Carpio de Tajo— and are registered in the name of one of Ignacio Silva Botas’s companies, Agropecuaria Madrigal, dedicated to agricultural and livestock production. Each of them went up for auction in separate lots.
Lots 1 and 3 were two farms of 687 hectares each, both called Madrigal de Abajo, in the municipality of Carpio de Tajo and Villarejo de Montalbán —in them, the family farm could be found. They went up for auction for 13.4 million euros. Lots 2 and 4 were two dehesas called Madrigal Arriba Alto, in the terms of Villarejo de Montalbán and Carpio de Tajo, with 581 hectares each. They went up for auction for 10.7 million. A last lot, number 5, was a farm baptized El Quintillo, of 177 hectares, and it was auctioned for little more than three million euros. In total, 51.34 million, an amount with which Novo Banco would have been able to recover all the money loaned to the businessman.
However, as the auction has been deserted, according to art. 671 of the Civil Procedure Law, if there is no bidder in the auction, “the creditor may, in the within twenty days following the auction closing, request the award of the property. If it is not the debtor’s habitual residence, the creditor may request the award for 50% of the value for which the good had gone up for auction or for the amount that is owed to him for all concepts “.
Bids for your three homes in Madrid
But, what is the origin of this debt? The businessman requested a loan from Banco Espirito Santo amounting to 27 million euros and signed a guarantee or guarantee provision policy for a maximum of 7.5 million euros, with an indefinite maturity. The entity granted him this loan “with the character of a mortgage market hedging operation”, while Ignacio Silva offered to complete “his personal joint and several and unlimited liability” with the mortgage guarantee of several properties, among them, several farms owned by Agropecuaria Madrigal, in addition to three houses located on Velázquez and José Abascal streets in Madrid and a chalet in Pozuelo de Alarcón.
These last three properties they did go up for auction last March, and, unlike the Toledo farms, the auction went ahead and bids were received for all of them: in total, about three million euros, compared to the almost 10 million that he hoped to achieve, according to the price set in the auction for each of these properties.
The businessman has already lost three homes in Madrid in a previous auction
However, it was not with these homes (Velázquez, José Abascal and Pozuelo) with which Novo Banco could obtain higher income with which to pay off the entire debt, but with the rustic farm auction. An auction that has been deserted.
Ignacio Silva Boots had a loan signed with Banco Espirito Santo, now Novo Banco, which required the businessman to return 34.5 million euros as principal of the credit granted and two million agreed for costs and expenses. That loan, which has motivated the auction of several of Ignacio Silva’s properties, also obliged him to “have the farms insured against damage or fire“, as well as carry out “the necessary works and repairs so that its value does not diminish. ”
The auction of these farms was suspended in September of last year. In March 2021, the same court called for the auction of other properties of the businessman. That auction did go ahead and bids were received. It is a Attic house located at 43 Calle Velázquez, which went up for auction with a minimum bid price of 1.245.450,46 euros. The only bid for this property was just over one million euros. This house was acquired in March 2007 by Ignacio Silva and has a surface area of almost 120 meters and the exclusive use of a terrace.
This house was mortgaged in favor, precisely, of Banco Espirito Santo and on this property there were, in addition, several preventive annotations of seizure. One in favor of a lawyer, Javier Guisasola Arnaiz, who claims 30,000 euros, plus 9,000 in costs, and another for almost 150,000 euros in favor of the community of owners of José Abascal 55 where, precisely, another of the assets under consideration was located however. Specific, a 200-meter flat located on the eighth floor of this building, at auction for almost 2.7 million euros and for which it was also presented a single bid of 1.45 million.
The judge also urged the auction of another 1,500-meter single-family home, in the Madrid municipality of Pozuelo de Alarcón, with an auction value of 6.45 million euros. This property received a bid for a much lower amount: just 645,700 euros. Now it remains to be seen if the bid of the farms of Toledo It finally comes out, 10 months later, and if bids are received for them that allow the employer’s debts to be paid.
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not a bid for the estates of Richard Gere’s father-in-law