Real estate developer Avrig 35, which developed projects such as Charles de Gaulle Plaza office building and Iris Titan shopping centre, has joined the string of insolvencies with three firms of the group (Office Development, Focsani Investment and Piatra-Neamt Development), which took out 15 million-euro loans from Bancpost, Banca Romaneasca and National Bank of Greece between 2006 and 2007.
The insolvency has, however, not been request by banks, but by Bonotel Ltd, a consultant of the company, to which Avrig 35 owes hundreds of thousands of euros.
"We chose to start insolvency proceedings for these companies as a result of disagreements with a consultant. The company owes hundreds of thousands of euros to it, which were not paid because the consultant in turn failed to meet its commitment to invest alongside us in certain projects. We are hoping to reach an agreement with it over the next few weeks and pull the companies out of insolvency in three to six months," Haydn Wright, the new CEO of Avrig 35, a company that holds over 50 properties in Romania through 35 different companies and has developed projects worth over 300 million euros in the last five years.
Real estate developer Avrig 35, which developed projects such as Charles de Gaulle Plaza office building and Iris Titan shopping centre, has joined the string of insolvencies with three firms of the group (Office Development, Focsani Investment and Piatra-Neamt Development), which took out 15 million-euro loans from Bancpost, Banca Romaneasca and National Bank of Greece between 2006 and 2007.
The insolvency has, however, not been request by banks, but by Bonotel Ltd, a consultant of the company, to which Avrig 35 owes hundreds of thousands of euros.
"We chose to start insolvency proceedings for these companies as a result of disagreements with a consultant. The company owes
