The famous Ştirbey Palace has been put up for sale by the liquidator at a starting price of 8 million euros, according to a public announcement by Euro Insol, the judicial liquidator of the Bucharest Arena debtor, the company that owns the Ştirbey Palace and the property, according to a public announcement. to zf.ro.
The auction will take place on June 29 at the Euro Insol headquarters in Bucharest.
Ştirbey Palace is an asset classified as a historical monument and before the liquidator offered it for sale, specific steps were taken in order to exercise the right of pre-emption in relation to the intent to purchase the Ştirbey property. Neither the Ministry of Culture, nor the Ilfov County Council, nor the Povetia Local Council wanted the Ştirbey area.
“The Ştirbey property is very generous, it has tourism potential, a hotel can be built here, a recovery center, and the price is very attractive. Compared with the potential of this area, the price is more than affordable,” according to the liquidator of Euro Insol, a company controlled by Remus Borza .
The construction of the palace began in 1850 by order of Barbo Dimitri Otterbe, governor of Wallachia, and continued until 1863. The estate covers an area of 24 hectares, of which 18 hectares is a garden with secular trees (trees for more than 400 years), the inner lake and opening to Lake Buftea.
Bucharest Arena, which owns former employees of the General Secretariat of Government, bought the property and Sterby Palace in 2006 from the heirs of the tirbey family, in a €9 million deal.
The shareholders’ plan was to develop a hotel, multi-purpose hall and restaurants on the tirbey property, which did not materialize, given that the company went bankrupt at the end of 2019.
Public data shows that the shareholders in Bucharest Arena are currently Valerian Maric (former owner of Producţie Ardealul), with a stake of 29.83%, Staicu Ilie Olteanu, with a share of 29.83%, Dan Octavian Kosic (former Secretary to the Secretariat of Government in 2001-2004) with a share 19.89%, Emil Pope with 19.89% and Christian Vladimir Singer with 0.55%, according to Confidas.ro data.
How did Bucharest Arena go bankrupt?
“As a result of the application by the debtor Bucharest Arena with civil conclusion dated 25.01.2018 issued by the Ilfov Court, Civil Division, in File No. 3343/93/2016, the court ordered the opening of public insolvency proceedings and appointed Euro Insol SPRL as a judicial officer. The reasons for the Internal and external bankruptcy of Bucharest Arena debtor”, according to Euro Insol SPRL officials.
Bucharest Arena planned to build a hotel, a multi-purpose hall and several restaurants, but this business plan did not materialize.
“Contractual loans held by the company, which became owed, generated interest that was accrued and sanctioned. The company’s revenues became insufficient to pay the bank installments and debts owed to other creditors. The lack of funds also resulted in the company’s inability to implement the initially proposed business plan, which consisted of a restaurant group, a hotel and a multipurpose room.
The lack of accommodations resulted in the loss of a large number of events. Thus, stopping the project can be considered the main reason for the failure to realize the proposed plan, this stage is necessary to achieve the proposed volume of business and repay bank loans”, according to Euro Insol.
Since the commencement of the insolvency proceedings, the debtor has indicated his intention to reorganize, and after two years in which he was in control proceedings, during which time he continued his activity, he submitted his own reorganization plan.
But at the end of 2019, the Bucharest Arena company went bankrupt.
“In view of the decision of the creditors’ assembly, which did not agree to the reorganization plan proposed by the debtor, the court on 20.11.2019 ruled bankruptcy in the general proceeding related to the debtor Bucharest Arena and appointed Euro Insol SPRL as a judicial liquidator”
Specific steps have been taken to exercise the right of pre-emption in connection with the intent to purchase the property named “Ştirbey Palace and Park” as a functional subset of movable and immovable property, given the original’s classification as a historical monument, according to Euro Insol.
The judicial liquidator submitted to the Ilvov District Directorate of Culture the address of the notification, taking into account the specific actions related to the exercise of the right of first refusal on the premises.
“The Ministry of Culture informed us that it does not exercise its right of pre-emption on the tirbey palace, and therefore the right of pre-emption is transferred from the state to the local public authorities, respectively Ilfov County Council and Buftea Local Council. Subsequently, the judicial liquidator provided notification addresses to the Buftea Local Council and to Ilfov County Council,” Medifax notes.
The Ilfov County Council has informed us that it is doing its best to obtain the necessary funds to purchase the “Sterpe Palace and Park” building, in accordance with the decision of the Ilfov County Council, an incomplete process, according to EuroInsol officials.
“The Buftea Local Council has informed us of the decision to approve the waiver of pre-emption by the City of Buftea upon the purchase of the building.”
Thus, the judicial liquidator began the procedure for selling the property, the first auction of which was held on June 29 at the headquarters of Euro Insol.