Bucharest's City Mall shopping centre, owned by Australia's APN investment fund, has entered bankruptcy proceedings at the request of the owners, which failed to reach an agreement with the representatives of UniCredit bank for the restructuring of a 40m-euro debt. The project is due to be put up for sale by the legal liquidator for debts to be covered.
"The request of the debtor (Victoria Holding, the firm that owns the shopping centre i.e.) of entering bankruptcy through simplified procedures has been accepted," judge Laura Andrei, vice-president of Bucharest Court of Law and the institution's spokesperson.
In other words, the firm will no longer try to reorganise, with the management to be taken over by the legal liquidator, after the firm's operating income dropped by 90% this year, amid substantial rent declines.
The most important tenants of the project are Primăvara and Billa supermarkets, Domo electrical home appliances chain or Sprider or House of Art apparel retailers.
Source: Ziarul Financiar