Court says Planorama insolvent, developer argues it was not cited in court

Israeli developer Euro Habitat, which has been working on the Planorama residential projects in Bucharest, has entered insolvency at the end of June, according to Ziarul Financiar, quoting an announcement sent to Planorama buyers. Euro Habitat told the buyers of apartment in Planorama that the company was not asked to participate in court when the insolvency was decided. The company has been facing increasing court activity after several owners of apartments in Planorama had taken their cases to court due to delays in apartment delivery. Planorama started to face issues in 2007, when the project's construction company Yapitek was close to insolvency. Euro Habitat changed the construction company but had to halt works due to financing issues. More recently, a new administrator for the project was designated. BSR Europe tried to re-start the project and got a financing from Piraues Bank, convincing angry buyers not to ask for penalties and saying they would move to their homes this summer. Planorama should feature 1,100 apartments in Doamna Ghica area of Bucharest.