Marius Locic Renders Residential Compound Insolvent

05.19.2011 ZF English

Locic Residential, controlled by businessman Marius Locic, under investigation in a corruption case alongside Catalin Voicu, Costel Casuneanu and Florin Costiniu, went insolvent at the beginning of this week, at the company's own request, filed at the Bucharest Court of Law.

The company had taken out a loan worth over EUR10 million in 2008 from Volksbank Romania, guaranteed with three plots of land covering a cumulated area of over 3,500 square meters on Intrarea Chefalului street in northern Bucharest, on the shore of Lacul Tei lake, where Locic had been planning to erect an apartment building, according to information from The Electronic Archive for Guaranteed Transactions.

The real estate market plummeted and the project was frozen, and in addition Marius Locic has been investigated by the National Anti-corruption Department (DNA) in the last two years, being charged with influence peddling, forgery of documents, and corruption.

According to information published in the press, Marius Locic, known as a business partner of George Becali, also has part of his assets frozen.

Locic was planning to link the nine-floor building he intended to build on Intrarea Chefalului with Barbu Vacarescu street by a bridge over Lacul Tei lake, that would pass by the Caro hotel. Locic's property is currently just a weed-covered land, from the sale of which Volksbank should recoup several million euros if the company is declared bankrupt on a land market still partly frozen at present.