“Talks with BCR officials came to the conclusion that unless an amicable solution is found the company may be foreclosed on,” Cocor’s report reads.
Cocor borrowed EUR19 million from the largest bank in Romania, BCR, in 2009 to finance upgrade and refurbishment of the shopping center and the construction of the multi-level parking lot behind it. The total investment in this project amounted to some EUR25 million.
The reopening of the store did not go as planned, though. The initial take-up of 85% went down as tenants were coping with more and more serious problems. Rents fell as a result of the crisis and the loan burden became increasingly harder leading to 34.8 million lei (almost EUR8 million) in losses in 2011, while revenue stood at RON27.5 million.
The company has been trying to find a solution to restructure the loan from BCR since last year but the two parties have not reached an agreement yet.
Cocor’s main shareholders are Liviu Ursan and Daniel Stoica, with 14.8% and 14.65%, investment fund Broadhurst, 13.3%, SIF Muntenia (SIF4.RO) and SIF Transilvania (SIF3.RO), 10% and Aurel Besliu, 16%. (EUR1=RON4.4594)
(English version by Loredana Fratila-Cristescu)