A Warsaw shopping center applies for restructuring
The court received a request to initiate accelerated arrangement proceedings.
A few days ago, representatives of the company managing the Warsaw shopping center called Blue City announced that they had filed a court application to open restructuring proceedings. In the issued statement, they also said that they were prompted to make such a decision by the refusal by the consortium of banks to extend the repayment deadline for the loan of EUR 156 million. According to last year’s arrangements, the mentioned deadline expired on the last day of June 2024. The negative response was received by the company’s management with great surprise. He declares that so far over EUR 80 million of the loan has been repaid. However, by initiating accelerated arrangement proceedings, they hope to protect jobs, continue operations of tenants and undertake investments aimed at increasing the value of the center. They also assure that their goal is to settle all liabilities by obtaining new financing or selling the center.
It is worth recalling that the Blue City shopping center has been operating for two decades. At that time, it was struggling with financial problems. Their solution was to obtain financial support and rebuild the center. Both goals were then achieved. In 2015, the center received a loan from a consortium of banks (ING Polska, Nationale Nederlanden, Santander, BNP Paribas, Postbank/Deutsche Bank and Bank of China) in the amount of EUR 185 million. A few years later, it was rebuilt and now, in addition to retail space, there are also office spaces and cinema halls.
