Troubled German property company Vivacon has confirmed that four of its subsidiaries have filed for insolvency at the local court in Cologne. The four subsidiaries are focused on residential properties in Salzgitter and Kassel, and account for almost 4,000 of the 10,000 residential units held by the Vivacon group.
Troubled German property company Vivacon has confirmed that four of its subsidiaries have filed for insolvency at the local court in Cologne. The four subsidiaries are focused on residential properties in Salzgitter and Kassel, and account for almost 4,000 of the 10,000 residential units held by the Vivacon group.
Vivacon blamed the problems on the illiquidity of the subsidiaries, which it said had been sparked by the high vacancy rate of the assets.
'The insolvency was filed in the context of the current restructuring efforts and serve to safeguard liquidity of the Vivacon group. A well-known auditing company was mandated to prepare a restructuring opinion,' the company said.
