Red Project Three firm, owning Armonia shopping centre ofBrăila, whose operations were suspended 15 months ago, hasofficially entered insolvency proceedings in the wake of aBucharest Court of Law ruling delivered last week, with Casa deInsolvenţă Transilvania appointed as the legal administrator.
Red Project Three is a firm controlled by RED Management Capitalcompany, which took out a 47m-euro loan from Volksbank to build ashopping centre in Brăila, with tenants such as Carrefour, Flancoor Sephora.
The project was operational for around nine months, being thenclosed for repositioning. Considering the project has not generatedany revenues for 15 months, Volksbank this autumn went to courtrequesting 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 moreeasily manage the reorganisation process and choose the legaladministrator.
"We are restructuring. I still believe in this project and I thinkthere is potential for a well adjusted shopping centre in Brăila,with a new product offering," stated Christian Hiver, leasingmanager of RED Management Capital.
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