Volksbank seeks to get back its money for Armonia Brăila in court

Austria's Volksbank, the third player in terms of assets and with one of the highest exposures to the real estate sector through its portfolio of mortgage loans granted, has asked for insolvency proceedings to be started in the case of the company that owns Armonia shopping centre in Brăila, closed almost 15 months ago amid the weak sales registered by retailers.

According to the Movable Guarantees Archive data, Volksbank lent around 47m euros for the construction of the shopping centre developed by RED Management Capital company, a project that no longer generates any rent revenues.
As a result, Volksbank asked for insolvency proceedings to be launched for Red Project Three, the owner of the asset.
At the first court date, October 18, Volksbank asked for the court date to be changed to November 30, 2010, and the Bucharest Court of Law agreed.
Volksbank representatives could not provide any further details by edition close, while RED representatives decided not to comment on the information.