The Pullman Hotel in Bucharest, an asset in the World Trade Center (WTC) portfolio, could be put up for sale for EUR 20 million. Remus Borza, the head of the judicial administrator Euro Insol, partially confirmed this option, mentioning that the final decision regarding the capitalization of the assets will be made by the creditors’ meeting in the first quarter of next year.
The reorganization plan of WTC aims at solutions to recover a total debt of EUR 90 million, with measures including the sale of assets, business transfer, or debt-to-equity swap. The company’s main creditors are Fondul Proprietatea, which holds 85% of the amount, and the Bucharest City Hall. Fondul Proprietatea’s claim originates from the former AVAS, which had taken over the debt from the Ministry of Finance, the guarantor of an external loan contracted in 1991 from two French banks and unpaid by WTC. The company filed for insolvency in 2011 to block a EUR 40 million foreclosure. In that year, WTC recorded a turnover of RON 39.8 million (equivalent to EUR 7.59 million) and a net loss of RON 12.8 million (approximately EUR 2.44 million), with data for 2012 not being public. The Pullman Hotel is classified at four stars and operates 188 rooms and 15 suites.
Frequently Asked Questions
What is the estimated sale price of the Pullman Hotel?
The Pullman Hotel in Bucharest could be put up for sale for an estimated EUR 20 million.
Who are the main creditors of World Trade Center Bucharest?
The main creditors are Fondul Proprietatea, holding 85% of the debt, and the Bucharest City Hall.
How many rooms does the Pullman Hotel have?
The four-star Pullman Hotel operates 188 rooms and 15 suites.