Casa de Insolventa Transilvania to manage the insolvency of Alia Imobiliaria

Bucharest Court of Justice named the insolvency-specialized company Casa de Insolventa Transilvania (CITR) as judicial administrator of real estate developer Alia Inmobiliaria, the Romanian branch of Spanish developer Alius.

February 2012

In 2010, the Spanish developer completed the real estate complex in expensive Kiseleff area in Bucharest, consisting in 20,000 sqm project of 124 apartments and 240 parking spots. The complex has been financed with approximate EUR 50 million, with half of the money taken from Unicredit Group. According to statement of Tamara Marinescu, country manager of Alia, the developer sold half of the apartments by 2011   and it didn’t take into consideration the renting for the unsold portfolio. In January this year, the developer asked for the Preventive concordat, which is a procedure of insolvency prevention.

The Bucharest court admitted Pricewaterhouse Coopers Business Recovery Services on January 5,  as temporary adviser for conciliation. According to the specialists, creation of a procedure of insolvency prevention is extremely necessary not only because it exists in almost all states from the European Union (excepting Germany, Bulgaria and Hungary), but also because Romania was one of the countries that had such a legislation since the inter-war period – The law of the preventive concordat passed in 1929 and abrogated in 1938.