The general creditors association for the Asmita Gardens real estate complex has approved a plan for its reorganization proposed by the largest lender, Alpha Bank Romania. Through it, Alpha Bank would receive €55m of the €70m it loaned the scheme. The plan will run for a period of 36 months, and could, if necessary, be extended for another 18 months.
In the meantime, sales of the remaining 397 unsold apartments in the complex will continue. However, the average price for units will be reduced from €1,600 per sqm to less than €1000 per sqm.
Insolvency proceedings were begun last fall against Asmita Gardens at the Alpha Bank.
