Developer of Cortina Residence declared bankrupt with 33m-euro debt

The biggest bankruptcy of a block of apartments in Bucharest was declared in early May by the Bucharest Court of Law, which issued such a ruling for Cefin Real Estate Alpha, developer of the Cortina Residence project in the Baneasa area of Bucharest.

A 13-floor block with 271 apartments was set to be erected on Horia Macelariu street, behind Phoenicia hotel. The underground car park and the first few floors were erected, but works were suspended almost a year ago. In January the developer went insolvent, although it had over 100 pre-contracted apartments, and only four months later, the court declared the company bankrupt.

"The ruling is final and will probably become irrevocable because the report of the legal administrator was approved in the meeting of creditors, and the developer unfortunately cannot come up with any other solution than bankruptcy. The next steps are evaluation of assets by a specialised firm and subsequent sale," Geanina Oancea, senior manager of BDO, the appointed legal liquidator, told ZF.

The total debt of the developer amounts to 33 million euros.