Bucșaru saves Green City from bankruptcy

Green City Construct company, controlled by the family of businessman Dumitru Bucșaru, owner of Unirea Urziceni football team, exited insolvency just two months after the Bucharest Court of Law issued a decision in this regard, saving thus the biggest villa project from bankruptcy.

According to ZF information, this is the first and also the fastest legal reorganisation of a domestic company, considering insolvency market players are speaking of reorganisations lasting for three to four years.

Bucșaru built 526 houses in 1 Decembrie locality of southern Bucharest, with 356 houses being raised through Green City Construct, which took out loans of over 100m lei from CEC Bank, with this as the largest house project domestically.

As around 40% of the 356 houses were unsold and many of those bought had been bought via an instalment system set up by a developer, so that Bucșaru did not get all the money at once, the businessman had to apply for a refinancing of the CEC loan. At that time, the move failed, so that in January 11, 2011, Green City Construct filed for insolvency on its own.

Green City Construct did not offer any information on the measures adopted through the reorganisation programme by edition close.