(Alliance News) - Property firm Plaza Centers NV said Friday it opened insolvency proceedings against a firm which agreed to purchase its plots of land in the Indian city of Bangalore.
A subsidiary of Plaza - Elbit Plaza India Real Estate Holdings Ltd - agreed along with its joint venture partner to sell the site to the purchaser. The buyer was obligated to pay EUR45.4 million in a series of tranches in order to acquire the site, of which only EUR11.2 million has so far been paid.
As a consequence, Plaza has initiated insolvency proceedings against the buyer for the recovery of the EUR45.4 million due from the firm.
Shares in Plaza Center closed unchanged at 27.50 pence in London on Friday.
By Ahren Lester; ahrenlester@alliancenews.com
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Plaza (PLAZ)