Transylvania Insolvency House (TIH) with Volksbank, are reported to have been working on a strategy on how to resolve the situation of the commercial center Armonia Braila, which went bankrupt late last year. The mall is valued at just €25m, following an investment that amounted to €45m.
According to the TIH report, debt on the mall debt amounted to €35m for 33 creditors. In this case, Volksbank would take over the commercial center from the company Red Project Three, the project developer. The Armonia Braila mall was opened in November 2008, only to close seven months later. The center was placed into insolvency in November 2010 and late last year the Court decided to announce bankruptcy. It has a total area of 41,850 sqm, divided into two floors.
This is the third mall in Romania to go bankrupt, following Tiago Mall Oradea and City Mall in Bucharest. Both were sold through TIH first for €30.5 m and the second for €17.3 m. Three Red Project is part of the Red company controlled by investment funds in Spain and Warburg Pincus GED from the United States of America.
