Immoeast tries to recover missing EUR 520 mln payment

Newsroom 03/11/2008 | 16:35

The fund expected a down payment of EUR 150 million by the end of October, representatives previously said.
Immoeast had to cancel EUR 2 billion worth of development projects, including some in Romania, and announced a disposal program to secure liquidity. Immofinanz has also suspended its dividend payment. Meanwhile, its former chief executive and chairman have resigned.
Immoeast said the funds had been transferred to an account of a company called Immofinanz Beteiligungs AG (IBAG) at Constantia Privatbank.
The fund said that there were reasons to suspect that IBAG's management did not know about the transfer.
“An investigation is necessary to determine who at Constantia Privatbank actually controlled the IBAG accounts and how the funds were eventually disposed of,” said Immoeast representatives.
The investment fund has already reported the issue to state prosecutors.Immoeast also said it would investigate Constantia Privatbank's liability for damages. A Constantia Privatbank spokesman declined to comment on such claims against the bank.
Immoeast holds some EUR 3.4 billion of assets in Romania.
The fund is expected to start selling some of its assets, Romania included, to meet its liquidity needs.
Corina Saceanu

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