Australian real estate developer South Pacific has filed forinsolvency in view of reorganising subsidiary South Pacific GroupMelbourne Residence, which is developing a 71-villa project in theTunari commune area, near Bucharest, with less than half the villassold so far.
The Australians, which have developed another 100 villas innorthern Bucharest as part of Sydney complex, are putting thedecision to file for insolvency down to disagreements withrepresentatives of Hardwick Holdings, the company's partner in theproject.
"Works on the project have been 98% finalised, but we need moneyfor the finishing touches, with works likely to take around tenweeks. We have the approval for the money from the bank, but ourpartners declined to sign the financing contract, so we decided tostart the insolvency proceedings in view of reorganising, and letthe court of law decide how the project is completed," AndrewPrelea, CEO and shareholder of South Pacific, told ZF.
Investment in the project amounted to around 9 million euros,with more than 5 million euros being sourced from a loan from theBanca Comercială Română (Romanian Commercial Bank - BCR).
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