Ibiza Sol

Case status: Judiciary reorganization

Ibiza Sol SRL is a limited liability company that owns one of the most importanyt luxury residential compounds located in Pipera area. The compound, built in 2006-2008, covers 38.000 sqm and consist of 14 blocks with 304 flats, 12.000 sqm of garden with 2 swimming pools, 1 area for mini-golf and 2 multifunctional buildings. 51 flats have been sold, 253 being available for sale or rent, including parking places and additional service spaces. On the company request, insolvency was reinforced by the Bucharest Court of Law in 2011.

On the procedure opening the company’s debts reached 236.500.000 RON (around 54.700.000 EUR), out of which the financing banks, Alpha Bank and Raiffeisen, owns more than 50% share. The other creditors are mainly the State budget, utilities suppliers and the only shareholder of the company, the Spanish group MacArthur, Patton Y Asociados SL.

The company insolvency was generated by the world financial crisis which affected, especially, the residential market. The crisis associated with impossibility to continue financing after the initial capital infusion made the situation even worse. The company was in difficulty of paying initial due debts due to the lack of continuity of commercial activity and to a decrease in operations.