City Mall Shopping Center in Bucharest, which went bankrupt atthe end of last year, will be put up for auction on March 31st fora starting price of 33 million euros, 70% lower than thetransaction concluded four years ago, in which Australian group APNEuropean Retail Trust paid over 100 million euros for the mall inthe Eroii Revoluţiei area.
In other words, the banks - UniCredit and Bancpost - which have a40 million-euro exposure to the project, took on a potential lossof nearly 20%, while the remaining lenders of Victoria Holding,City Mall owner, will probably not get even one eurocentback.
The mall went bankrupt with 75 million euros in debts, with itsmain creditors, outside the banks, being the Australians at APN,which financed the mall's activity through several loans.
"The conditions of contract will be put up for sale at thebeginning of March. In order to take part in the auction, one needsto come up with guarantees of 5% or 10% of the starting price, butwe have yet to decide on the value. There are around ten investorsinterested, but none of them has made an offer yet. Anyway, I amvery optimistic that it will sell quickly," Radu Lotrean, partnerof Casa de Insolvenţă Transilvania (Transilvania Insolvency Firm),court-appointed liquidator of City Mall, told ZF.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
