New Nordic: Pattaya developer begins voluntary rehabilitation procedure with Bankruptcy Court

[Jonathan Fairfield]

A key player in Pattaya’s real estate market has announced it has initiated a voluntary rehabilitation procedure under Thailand’s Bankruptcy Act.

New Nordic Development Co., Ltd, which offers 'condotel' style investments, owns dozens of properties throughout Pattaya.

According to its website, the company announced on 16 February that it filed for rehabilitation with the Central Bankruptcy Court on 28 January.

Another statement from the company reads:

The COVID-19 pandemic has delivered an unprecedented impact on the global economy and the tourism industry. More than ever, this has called for the ability to swiftly adapt to the needs of travelers, vacationers, and other stakeholders amid these uncertain times. New Nordic Development Co., Ltd is committed to taking the necessary steps to secure our future by using the mechanisms afforded by Thailand’s Bankruptcy Act to become stronger and more resilient to unforeseen changes while placing significant emphasis on the well-being of our customers, employees, and stakeholders.

An update posted last Friday (12 March) to clients who have purchased units from the company advises them to vote for the vote for the rehabilitation plan.

“Regrettably, the alternative may be a liquidation of NND and the loss of most remaining value as all assets are sold to pay creditors”, the company warns in its update. 

 

Image shows New Nordic's properties in Pattaya

According to the company’s website most of the properties affected by the voluntary rehabilitation procedure are located in Pattaya:

• New Nordic Atrium
• New Nordic Castle 1
• New Nordic Castle 2
• New Nordic Club 1 – 3
• New Nordic Marcus 2
• New Nordic Marcus 3
• New Nordic VIP Suites 2 – 6
• New Nordic Trend 1 – 7
• New Nordic VIP 1 – 6
• Phetchaburi Park

Anyone affected is advised to visit https://nng-restructuring.com/ for more information.

 

[Ron jeremy]

That’s why you rent! Period!

[tomazbodner]

1 hour ago, Ron jeremy said:

That’s why you rent! Period!

If you buy your own place to live in it, what's that got to do with the swindled investors mentioned above?

[Golden Triangle]

1 hour ago, Ron jeremy said:

That’s why you rent! Period!

I said more or less the same in the original post, didn't make any friends there either ????

[Golden Triangle]

14 minutes ago, tomazbodner said:

If you buy your own place to live in it, what's that got to do with the swindled investors mentioned above?

As has been seen time & time again in this fair city, all is not what it seems unfortunately. 

[NCC1701A]

does this mean the swimming pool is closed? 

[Destiny1990]

Bummer, so their guaranteed rental return of 10% for ten years wasn’t guaranteed ????????. Now these unit owners should just be happy if they may keep their overpriced mostly leasehold units. 

[scubascuba3]

People have been talking about these guaranteed rent schemes for years, no one should fall for that, plus buying off plan, only fools do that

[jacko45k]

1 hour ago, scubascuba3 said:

People have been talking about these guaranteed rent schemes for years, no one should fall for that, plus buying off plan, only fools do that

Isn't that a fact.... when these 10% return, GUARANTEED marketing adverts were first touted there was a great cynicism....and yet. I think the days of buying off plan are suspended for a while. A pity, that is the common business model. 

Maybe invest in a bar or bar owners group?

[Jeffr2]

8 hours ago, Ron jeremy said:

That’s why you rent! Period!

I decided not to rent.  12 years later, what I would have paid for in rent has almost paid for the property.  Not a bad way to go.

But yes, here in Thailand, renting is a great way to go.  But not for all of us.

[Jeffr2]

2 hours ago, scubascuba3 said:

People have been talking about these guaranteed rent schemes for years, no one should fall for that, plus buying off plan, only fools do that

Years ago, we visited a site offering 8% returns guaranteed.  There was a downturn in the market and units weren't selling.  I asked about the guarantee?  Answer.  Yes, guaranteed...but not this year. LOL.

[jacko45k]

11 minutes ago, Jeffr2 said:

I decided not to rent.  12 years later, what I would have paid for in rent has almost paid for the property.  Not a bad way to go.

But yes, here in Thailand, renting is a great way to go.  But not for all of us.

You make a point for a different view too with those numbers..... 

1. Twelve years later and still not covered the cost of the condo. An older person arriving in Thailand may want to consider that fact.

2. Got a condo, what to do with it before one dies or needs to move on, unless it can be readily sold, hopefully with  profit , a white elephant.

3. No recurring expenses that impact the comparison? How about annual maintenance and services charges, now we have property tax, albeit small. Not to mention the flexibility lost to being tied to a property.

4. How about guys who bought on a loan from Nordic to take advantage of that 10% return, where are they now?

(Now don't go thinking I am anti.... I am stuck with a house!)

Edited March 15, 2021 by jacko45k

[Tagged]

Cant believe anyone buy from a company that have been doing <deleted> over and over again and again and guess what, they being struck by a crisis again. 

F.... pyramid gamblers who milk the marked during wealthy times, and broke when <deleted> hits the fan. 

 

[micmichd]

24 minutes ago, Tagged said:

Cant believe anyone buy from a company that have been doing <deleted> over and over again and again and guess what, they being struck by a crisis again. 

F.... pyramid gamblers who milk the marked during wealthy times, and broke when <deleted> hits the fan. 

 

This happens in the West, too. Why shouldn't it happen in Pattaya? 

[Oldie]

Pattaya has a big warning sign - can't be overlooked. 

 

[wombat]

1 hour ago, jacko45k said:

 

4. How about guys who bought on a loan from Nordic to take advantage of that 10% return, where are they now?

 

Valid question..

[Jeffr2]

1 hour ago, jacko45k said:

You make a point for a different view too with those numbers..... 

1. Twelve years later and still not covered the cost of the condo. An older person arriving in Thailand may want to consider that fact.

2. Got a condo, what to do with it before one dies or needs to move on, unless it can be readily sold, hopefully with  profit , a white elephant.

3. No recurring expenses that impact the comparison? How about annual maintenance and services charges, now we have property tax, albeit small. Not to mention the flexibility lost to being tied to a property.

4. How about guys who bought on a loan from Nordic to take advantage of that 10% return, where are they now?

(Now don't go thinking I am anti.... I am stuck with a house!)

Well put!!!!!!!!  In my situation, I'm my own owner, don't have to ask for anything if I want to upgrade something, and now, will get a bunch of money when I sell.  As opposed to having nothing.

If something happens to me, wifey can have it.

But your points are VERY valid.  I highly recommend anyone moving to Thailand rent at first.  For at least a year.

[newnative]

3 hours ago, scubascuba3 said:

People have been talking about these guaranteed rent schemes for years, no one should fall for that, plus buying off plan, only fools do that

     You can buy off-plan but choose carefully.  My partner and I have bought off-plan about a half dozen times, always from strong, well-financed, Bangkok developers with a good track record of completed projects.  Sansiri.  Lumpini.  SC Asset.  Raimon Land.  We give the small, no-name developers a pass and we would never buy off-plan from a foreign developer.   All the projects we bought into off-plan were completed, and most were done several months early.  

[OswaldBastable]

1 hour ago, jacko45k said:

You make a point for a different view too with those numbers..... 

1. Twelve years later and still not covered the cost of the condo. An older person arriving in Thailand may want to consider that fact.

2. Got a condo, what to do with it before one dies or needs to move on, unless it can be readily sold, hopefully with  profit , a white elephant.

3. No recurring expenses that impact the comparison? How about annual maintenance and services charges, now we have property tax, albeit small. Not to mention the flexibility lost to being tied to a property.

4. How about guys who bought on a loan from Nordic to take advantage of that 10% return, where are they now?

(Now don't go thinking I am anti.... I am stuck with a house!)

If you buy a condo in a large block, and the company goes bust after only a few units are sold and occupied, who keeps the gym, swimming pool, elevators, lights, security, management and all the utilities and maintenance going?

This wouldn't be a problem in a building already full as the condo owners would be paying for all of that.

Edited March 16, 2021 by OswaldBastable

[pixelaoffy]

Hilarious! All these suckers who paid millions for condos..we warned you ! 

 

 

[jacko45k]

2 minutes ago, OswaldBastable said:

If you buy a condo in a large block, and the company goes bust after only a few units are sold and occupied, who keeps the gym, swimming pool, elevators, lights, security, management and all the utilities and maintenance going?

My thought are that in many cases, the units are already sold before they are built, if they cannot muster up enough sales to  fund the next stage, the project may flounder or pause. When a project is 'complete', isn't the upkeep transferred to another company... not sure how independent that is from the constructing group.  A completed project should self fund from maintenance and service fees. 

[pixelaoffy]

10 minutes ago, Jeffr2 said:

Well put!!!!!!!!  In my situation, I'm my own owner, don't have to ask for anything if I want to upgrade something, and now, will get a bunch of money when I sell.  As opposed to having nothing.

If something happens to me, wifey can have it.

But your points are VERY valid.  I highly recommend anyone moving to Thailand rent at first.  For at least a year.

At least a 100 years 

[pixelaoffy]

1 hour ago, Jeffr2 said:

Years ago, we visited a site offering 8% returns guaranteed.  There was a downturn in the market and units weren't selling.  I asked about the guarantee?  Answer.  Yes, guaranteed...but not this year. LOL.

Thai style guarantee... Meaningless like most other so called contracts 

[Jeffr2]

8 minutes ago, pixelaoffy said:

At least a 100 years 

I think 1 year is fine.

Edited March 16, 2021 by Jeffr2

[Thomas Hannah]

Have warned people for 20 years about buying in thailand,not just because of this problem.But so many talk about how much there condo is worth.untill they come to try and sell it.and are lucky to get 50% of what they thought it was worth.Loads of selling hype.The property developers dont loose money.The company does,not them.They then open a new company soon after.This is not just thailand.I have heard many times people saying .he went bankrupt.And then having to explain.

[Jingthing]

2 hours ago, Jeffr2 said:

I decided not to rent.  12 years later, what I would have paid for in rent has almost paid for the property.  Not a bad way to go.

But yes, here in Thailand, renting is a great way to go.  But not for all of us.

I'm in a similar situation but more realistic about the financial benefits. The value of my condo has gone down like a used car. The cost to rent a similar condo has gone down. The maintenance costs especially for the building have gone way up. 

If I do ever sell I'm concerned about getting the money out of the country. 

If I had put the same money in an index fund in the US stock market I would have been way ahead even accounting for the so called "free" rent.

However there are psychological benefits of not having to kow tow to a landlord and likely moving more often.  Of course the flip side of that is you're somewhat "stuck" in an illiquid investment if it turns out you grow to be unhappy with the place.

 

Oh well.

[murraynz]

4 hours ago, scubascuba3 said:

People have been talking about these guaranteed rent schemes for years, no one should fall for that, plus buying off plan, only fools do that

Well said...but fairly obvious,i would think.

I dont know why people fall for these schemes..

[Jingthing]

Of course I'm familiar with the Nordic company. 

While I'm no Warren Buffet I know better than to fall for guaranteed ROI promises in Thailand or anywhere.

So when I heard the news I thought 

--

NOT shocked.

NOT surprised. 

 

 

[Jeffr2]

6 minutes ago, Jingthing said:

I'm in a similar situation but more realistic about the financial benefits. The value of my condo has gone down like a used car. The cost to rent a similar condo has gone down. The maintenance costs especially for the building have gone way up. 

If I do ever sell I'm concerned about getting the money out of the country. 

If I had put the same money in an index fund in the US stock market I would have been way ahead even accounting for the so called "free" rent.

However there are psychological benefits of not having to kow tow to a landlord and likely moving more often.  Of course the flip side of that is you're somewhat "stuck" in an illiquid investment if it turns out you grow to be unhappy with the place.

 

Oh well.

Well put.  Our house hasn't gone up much, but a bit.  Lots of maintenance, etc.  But!  I'm in charge.  It's mine.  And don't have to deal with a landlord just to get my AC fixed.  Some of my friends who rent are told by their landlords they have to pay for it.  Ugh.

[robblok]

2 hours ago, jacko45k said:

You make a point for a different view too with those numbers..... 

1. Twelve years later and still not covered the cost of the condo. An older person arriving in Thailand may want to consider that fact.

2. Got a condo, what to do with it before one dies or needs to move on, unless it can be readily sold, hopefully with  profit , a white elephant.

3. No recurring expenses that impact the comparison? How about annual maintenance and services charges, now we have property tax, albeit small. Not to mention the flexibility lost to being tied to a property.

4. How about guys who bought on a loan from Nordic to take advantage of that 10% return, where are they now?

(Now don't go thinking I am anti.... I am stuck with a house!)

I bought a house and guess what it increased in value (because a big shopping center and BTS were made). Paid for it years ago now done. 

Its not all bad but have been here 15 years. Id say in most situations renting is good but there is nothing against buying.

Now my house is empty (dont want to sell it) and i live in a rented house in Thong lor. I must say owning a house is nicer as you can improve what you like put stuff up where you like put in better aircons ect. Its all about comfort i feel that in condo's and rented houses your a bit more restricted.

On the other hand the owner of this new house does all the maintenance. For the pool the house whatever. So its not bad. But for the price the company of the GF is paying per month I would not be here (80k). Far to expensive for my taste.