(Alliance News) - Property firm Plaza Centers NV on Friday said a court has issued a notice to the potential buyer of a site in Bangalore, India, following the opening of insolvency proceedings by Plaza Centers Itself.
A subsidiary of Plaza - Elbit Plaza India Real Estate Holdings Ltd - had 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 result, in late September Plaza initiated insolvency proceedings against the buyer for the recovery of the full EUR45.4 million due from the firm.
Criminal cases were filed for failing to honour cheques given as security for paying instalments, Plaza Center said. The court has issued arrest warrants, and the police are now "on the look out for the accused persons".
"The company will continue to take all measures warranted in the circumstances to protect its interest and will update regarding any new development," Plaza Centers stated.
Shares in Plaza Centers - which is based in Amsterdam - were untraded on Friday, last quoted at 30.00 pence in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Plaza (PLAZ)