Oschterbour SA leaves 19 houses in Luxembourg unfinished

The Ouschterbuer project in Oberkorn, Luxembourg, which included 15 flats and 26 houses, is facing a crisis: construction has stopped, bills are not paid and the developer Oschterbour SA has declared bankruptcy. For the 19 owners of unfinished houses, this means uncertainty and a struggle for compensation.

Problems first arose back in 2023, when buyers reported that construction had stalled due to non-payment to contractors. Now their fears have been confirmed: Capelli, a subsidiary of the French property developer responsible for the project, has been unable to avoid bankruptcy.

The buyers were relying on the mandatory completion insurance guarantee (VEFA), but it turned out that the documents listed different companies: some guarantees listed Capelli SA and others Oschterbour SA. This raised doubts as to whether compensation could be paid.

Initially, Stonefort's insurance company refused to cover the costs, saying that the contract had been signed with the wrong company. However, EuroCaution, an intermediary between the insurer and clients, later clarified the situation, promising to review the case and give a final decision.

EuroCaution claims that Capelli made mistakes in the paperwork. In turn, Capelli insists that the guarantees do apply to all properties and shifts the blame to the insurance company.

Some buyers, including Jennifer Vitriolo, have already given up waiting and are going to complete the houses on their own. However, insurance companies advise against this route, pointing out the high risks and possible additional costs.

Meanwhile, there is a chance that Capelli could save Oschterbour SA from bankruptcy if it pays off its debts. In this case, the company would regain control of the project and the responsibility for completion would be transferred back to the developer, which could provide some relief to buyers.