Bucşaru saves Green City from bankruptcy
Green City Construct company, controlled by the family of
businessman Dumitru Bucşaru, owner of Unirea Urziceni football
team, exited insolvency just two months after the Bucharest Court
of Law issued a decision in this regard, saving thus the biggest
villa project from bankruptcy.
According to ZF information, this is the first and also the fastest
legal reorganisation of a domestic company, considering insolvency
market players are speaking of reorganisations lasting for three to
four years.
Bucşaru built 526 houses in 1 Decembrie locality of southern
Bucharest, with 356 houses being raised through Green City
Construct, which took out loans of over 100m lei from CEC Bank,
with this as the largest house project domestically.
As around 40% of the 356 houses were unsold and many of those
bought had been bought via an instalment system set up by a
developer, so that Bucşaru did not get all the money at once, the
businessman had to apply for a refinancing of the CEC loan. At that
time, the move failed, so that in January 11, 2011, Green City
Construct filed for insolvency on its own.
Green City Construct did not offer any information on the measures
adopted through the reorganisation programme by edition
close.