The bank has an exposure of EUR70 million on the project.
The developer has 10 days to present all literature necessary in view of analysis whether it should be reorganized or dubbed bankrupt, according to Remus Borza, managing partner within Euro Insol, the court-appointed administrator.
The liquidator official added that elements leading to this insolvency include the declining market, as well as disagreements between the shareholders and the general contractor, Strabag.
Asmita Gardens shareholders include Indian group Asmita and European Convergence Development Company (ECDC), owned by Charlemagne Capital.
The project required an investment of some EUR120 million, and less than half of the 758 apartments have been sold so far.