Austria's Volksbank, the third player in terms of assets andwith one of the highest exposures to the real estate sector throughits portfolio of mortgage loans granted, has asked for insolvencyproceedings to be started in the case of the company that ownsArmonia shopping centre in Brăila, closed almost 15 months ago amidthe weak sales registered by retailers.
According to the Movable Guarantees Archive data, Volksbank lentaround 47m euros for the construction of the shopping centredeveloped by RED Management Capital company, a project that nolonger generates any rent revenues.
As a result, Volksbank asked for insolvency proceedings to belaunched for Red Project Three, the owner of the asset.
At the first court date, October 18, Volksbank asked for the courtdate to be changed to November 30, 2010, and the Bucharest Court ofLaw agreed.
Volksbank representatives could not provide any further details byedition close, while RED representatives decided not to comment onthe information.
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