It's official: Armonia Center in Brăila insolvent, Casa Transilvania serves as legal administrator

Red Project Three firm, owning Armonia shopping centre of Brăila, whose operations were suspended 15 months ago, has officially entered insolvency proceedings in the wake of a Bucharest Court of Law ruling delivered last week, with Casa de Insolvenţă Transilvania appointed as the legal administrator.

Red Project Three is a firm controlled by RED Management Capital company, which took out a 47m-euro loan from Volksbank to build a shopping centre in Brăila, with tenants such as Carrefour, Flanco or Sephora.
The project was operational for around nine months, being then closed for repositioning. Considering the project has not generated any revenues for 15 months, Volksbank this autumn went to court requesting the insolvency of the company it had funded. Subsequently, RED representatives themselves filed for insolvency, which speeds up the ruling of the court. Moreover, RED can more easily manage the reorganisation process and choose the legal administrator.
"We are restructuring. I still believe in this project and I think there is potential for a well adjusted shopping centre in Brăila, with a new product offering," stated Christian Hiver, leasing manager of RED Management Capital.