Ibiza Sol follows Citadella Titan model, another real-estate project on sale upon becoming insolvent in 2012. The reorganization plan approved by its creditors provides either the sale of the whole project or the separate sale of the housing units, procedure meant to recover around EUR33 million. However, the creditor banks Alpha Bank and Raiffeisen Bank could take over the project themselves.
‘The reorganization plan proposed by the official receiver has been voted by all of the five classes of creditors and stipulates the capitalization of Ibiza Sol entire asset for an investor and/or converting the assets into capital in retail system for a price of EUR33.35 million + VAT. The plan also allows the full transfer of the asset of Ibiza Sol towards its secured creditors Alpha Bank Romania and RI Eastern European Finance respectively, through Raiffeisen Bank and/ or any other person or juridical entity that is subrogated to the rights and obligations of the secured creditors.’ states a company release from Euro Insol, the official receiver of the company developing the real-estate project.
The company established in 2006 by a group of Spanish investors got into insolvency last year and has debt worth about EUR45 million of which EUR36 million is due to Alpha Bank and RI Eastern European Finance (represented by Raiffeisen Bank).