Two major factors behind the closing of Armonia Braila mall inthe summer of 2009 and its subsequent insolvency were "thesuspension of the rental contract sealed with Carrefour in the wakeof the small visitor flow" and the "negative signals sent byLeonardo and Altex, which had inked rental contracts, but did notopen stores," reads a report by Casa de Insolventa Transilvania(Transylvania Insolvency Firm), the legal administrator of RedProject Three, the developer of the project.
The mall went insolvent as a result of the low number ofshoppers and visitors, around 2,000-3,000 people daily, havingdebts of around 35m euros (150m RON).
Of the 33 creditors registered as such, the biggest sum to berecouped is that of Volksbank, which has an exposure of 120.7m RON(28m euros), namely 80% of the total value of the debt.
The representatives of Casa de Insolventa Transilvania believethat "the company now stands minimal chances to turn around", butwill not propose for bankruptcy proceedings to be opened at thefirst meeting of lenders, scheduled for next week, waiting for REDrepresentatives to submit a reorganisation plan by February 13,2011 instead.
The representatives of the legal administrator recommend for theproject to resume its operations.
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