The company asked for its insolvency on November 12, and the Court accepted on Wednesday the request of Omilos Oradea and designated as judicial administrator the consortium made of TZA Insolvenţă and VF Insolvenţă.

Omilos’ s decision to enter insolvency follows the announcement of Argo Real Estate (ARGO), the group controlling the project, to have lost a litigation for EUR 3.2 million with the construction company Construcţii Bihor. The constructor claimed the unpaid of some works executed for the commercial centre.

Bancpost, Banca Românească and Bank of Cyprus have EUR 62.3 million exposure on this project, which risks to bankrupt through the insolvency opening. The project’s tenants include Carrefour, Bricostore, Altex and Mobexpert, the turnover of the commercial centre reached EUR 2.5 million last year.

ARGO alsp owns in Romania similar retail parks in Sibiu, Suceava and Iaşi, with a total area of 271,000 sq. m. Era Shopping Park Oradea has a rentable area of 64,000 sq. m, Era Shopping Park Iaşi has 80,000 sq. m, Shopping City Suceava 47,000 sq. m and Shopping City Sibiu, the biggest park in ARGO’s portfolio, has more than 80,000 sq. m rentable area.

 ARGO’s representatives previously announced that the opening of the insolvency procedure would not stop the activity of Omilos Oradea and of Era Shopping Park Oradea. Moreover, they showed that the commercial centre’s activity would continue normally and that there would be no impact on the tenants’ activity and on the services provided to the commercial centre’s clients. (source: economica.net)