City Mall Fails To Attract Buyer For Second Time

04.18.2011 By Florentina Dragu

Bucharest shopping center City Mall failed to attract investors at a second auction following the company’s bankruptcy in November last year and liquidators are looking for alternatives to repay creditors, people familiar with the matter said Monday.

Bucharest shopping center City Mall failed to attract investors at a second auction following the company's bankruptcy in November last year and liquidators are looking for alternatives to repay creditors, people familiar with the matter said Monday.

The start-up price for the assets of bankrupt City Mall was set at EUR29.5 million, lower than at the previous auction. Investors were supposed to buy documentation for the bid until April 18, while the actual sale was set for April 20.

"We'll discuss with the creditors this week to see what our next move is," Radu Lotrean, partner at liquidation house CITR, told MEDIAFAX.

He said the creditors might decide to keep the company in exchange for the debts, or they could attempt a new sale.

City Mall went bankrupt in November 2010, after owner Victoria Holding, a unit of Austria's investment fund APN European Retail Trust, was unable to repay the loans taken for its construction.

According to the preliminary chart of debts, the three banks that financed the project stand to collect a total 176 million lei (EUR1=RON4.0869).

City Mall has a total surface of 38,000 square meters and a lettable area of 19,000 square meters. The center includes 80 stores, cafe bar and restaurant areas, as well as a movie theater operated by City Cinema.