On October 8, the Bucharest Court admitted the insolvency request of one of the creditors of the real estate developer Nordis Management, a real estate group that is developing luxury projects in first-class resorts such as Mamaia on the Black Sea coast, Sinaia in Prahova Valley, or the popular ski resort Poiana Brasov. 

The projects are sold as investment instruments to buyers who typically hold a considerable amount of cash and pay the largest part of the money upfront, against the promise of a substantial discount and fancy marketing campaigns targeting a category of buyers who are not particularly risk-averse and prefer keeping a low profile.

Furthermore, customers are reportedly banned from disclosing details of their contracts under a special clause, and this contributed to rather diffused rumors about the solidity of the business than clear elements. Even so, Nordis frequently came under attack from its customers, particularly following delays in the development of the projects and failure to communicate.

The insolvency faced by Nordis coincides with a more challenging period faced by the real estate developer.

On October 9, the same court is expected to rule on another insolvency request filed by about 20 creditors against Nordis, according to G4media.ro. Later, on October 10, the court will evaluate a request filed by Nordis to trigger the pre-insolvency procedure and thus put the company's assets under protection under the restructuring period.

Local investigative platform Recorder recently unveiled the political connections of the developer and, based on documents consulted, concluded that Nordis allegedly sold the same apartment to multiple buyers under various instruments such as pre-contracts or contracts. In a reaction quoted by Bursa.ro, the developer said this never happened, as it would be impossible.

The political connections of the Nordis business are also highlighted in the media investigation. Notably, the wife of Nordis' main shareholder is the Social Democrat MP Laura Vicol – who resigned from her position as head of the legal committee in the Chamber of Deputies the day after the Recorder investigation was released.

In the note published as a response to Recorder's investigations, Nordis assured of its financial solidity, rejected all allegations, and accused harassment from some of its former customers who asked for the termination of the contracts and already received their money back.

Nordis claims it has successfully completed numerous residential and hotel projects over time, but it admits that problems and controversies have arisen primarily in relation to the development of the Nordis Mamaia complex. 

"This is a unique concept in Romania, a project with extraordinary potential, which attracted the attention not only of investors but also of people with less honest intentions," the company said in its response.

iulian@romania-insider.com

(Photo source: Nordis)