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October 28, 2020

EUR 800 M-debts accumulated by companies in Transilvania Insolvency House portfolio

The companies managed by the Transilvania Insolvency House (CITR) had, in 2010, EUR 800 M-debts and assets evaluated ay EUR 350 M, and the company estimates it will distribute to creditors over EUR 200 M. The company’s portfolio includes companies like Leonardo, Flanco, Diverta, Tiango Malls, Boom and Fortus Iasi.

“Besides the EUR 44 M distributed so far to the creditors of firms in the CITR portfolio, we estimate we will distribute EUR 200 M, in the next three or four years. We are, thus, in the upper limit of average debt recovery, which is ranging between 25 and 30 pc,” Andrei Cionca, managing partner at CITR, stated, yesterday, in a press conference, quoted by Mediafax. He argued that the EUR 350 M-value of assets is an evaluative value and is not set following attempts to sell these assets. “We didn’t try to sell too much in 2010, as the market could not take in the assets at the values evaluated,” Cionca added. At the same time, at the end of March, CITR will organize an auction for the selling of the City Mall shopping centre in Bucharest. The CITR representative added that the banks stand to lose the least from insolvency procedures, being able to recover the largest portion of debts, as they have no guarantees and are granted priority in these cases.
According to CITR, the number of firms which start insolvency procedures will grow at a slower pace in the course of this year, as there are signs pointing to an economic recovery and statistics indicate a significant reduction of insolvency procedures.

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