Hotel La Claustra in Airolo Switzerland (Canton Ticino) sells for a meager $1,000, estimated to be worth $3.8m..

http://www.thelocal.ch/page/view/und...way-at-auction

... what's he going to do with it .... ?!?

The owner might well be surprised he just bought himself a whole boat load of debt.

The Electric bill alone is $60,000 a year.

I read that. But he might find that he is now the proud owner of outstanding debts that have not been paid off.

which I am sure will be paid off once it sells for its real price....

and it was declared bankrupt.....that should take care of most of the costs

wow. look's great. as a troll, i would love to live underground there!

well, i guess many creditors will have been screwed over by this low price sale.

i wonder what debts are left attaching to the land and properties itself.

doesn't bankruptcy imply that all creditors'claims are limited to the proceeds of the auction?

I don't see how the debts could be assigned to the buyer...

All mortgages go with the land, so there is a good chance it has a negative value. At least he has not given any personal guarantees!

if he's very lucky, the bank could have taken possession and this could have been the bank's auction...

I guess it also depends if you bought just the hotel or "business". I don't think you can get out of all debt. He'll certainly owe taxes and possibly grants, loans from the government.

It would be interesting to see. But I don't think he's coming away with only dishing out CHF1,000 for this hotel.

Even so there may be multiple mortgages 'inhalber', unless you get all the mortgage documents back, you will never know who you owe & how much is outstanding.

I doubt the business was sold as a going concern as it went bankrupt.

You need a lawyer to answer this but so far as I understand bankruptcy in Switzerland does not magic all the debts away like it does in other countries....

It might work for film shooting or a rave party.

However needs quite a few candles...

I think it's quite cool. But I think there lots of bad news buried* in the files.


(buried, get it? haha)

Any mortgages on property remain until they are paid off, it's the same everywhere.
Unsecured debts to a company don't get paid, except for salaries, AHV & pension payments that are insured.
In the UK it has been known for a mortgage to be redeemed for a discount, that wont happen here!

You're probably right, which only just makes it less bad. I'd be interested to into the details of this sale!

I guess all bank borrowings would have been secured, so quite likely 4 million or more outstanding.

I was looking at buying a house in bad condition for 750,000 about 8 years ago, there were 5 outstanding mortgages totalling 1,200,000!

http://www.ticinonews.ch/articolo.as...8132&rubrica=2
Hotel can only be kept opened 6 months a year. Costs 3.000 fr a month
to manage the house.