Plaza Centers files counterclaim against Romania, law firm steps away

(Alliance News) - Plaza Centers NV on Monday reported a new counterclaim and the termination of engagement with a law firm amidst litigation against Romania.

The property developer and investor's operations target central and eastern Europe.

Its shares traded 3.5% higher at 15.00 pence on Monday afternoon in London.

Romania's Ministry of Finance began litigation against Plaza Centers related to the Casa Radio/Dambovita Center project in Bucharest. Romania filed a statement of claim last year, requesting to end a 2006 public-private partnership agreement with Plaza Centers, and seeking the return of all project assets to the state.

Plaza Centers on Friday filed a statement of defence and a statement of counterclaim, rejecting Romania's claims against the company and seeking compensation in the region of EUR60 million to EUR420 million.

Additionally, the company disclosed that it had received notice of termination of engagement with a London law firm, effective from Saturday.

Consequently, Plaza Centers has said it "is assessing its position and considering all available options and next steps".

The law firm had represented Plaza Centers in the arbitration proceedings brought by Romania before the London Court of International Arbitration, and the arbitration brought by Plaza Centers before the International Centre for the Settlement of Investment Disputes.

Last month, the ICSID dismissed a claim made by Plaza Centers on jurisdictional grounds. The decision was based on findings relating to the company's conduct and certain historical agreements referenced in public disclosures published between 2016 and 2020. In addition, the tribunal ordered that each party would be responsible for its own arbitration costs.

Plaza Centers had been seeking compensation from the ICSID for losses which the company sees as a result of Romanian authorities failing to comply with their contractual obligations.

Back in March, Plaza Centers reported that its pretax loss had narrowed to EUR18.0 million in 2025 from EUR28.1 million a year prior. The company had also warned that it was unable to service its debt under an existing bond repayment schedule, and intended to request a further postponement of the repayment date. If the bondholders do not approve, Plaza Centers would either need to enter an additional debt restructuring, or else it "might cease to be a going concern".

By Holly Munks, Alliance News reporter

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