Immo Industry Group

IIG regretfully announces that IIG Belgium filed for bankruptcy. In September 2008, IIG was hit by the liquidation of Jersey based Belgravia Asset Management. Together with IIG’s own funds and additional funds, Belgravia invested in IIG’s projects in CEE, through project financing and the acquisition of completed projects. Belgravia’s liquidation had a significant impact on IIG’s cash flow position. When IIG turned to the financial market to address its liquidity requirements, it was faced with a heavy storm, as the bank crisis was at its peak. The global economic crisis led financial institutions to refuse project financing to IIG, despite the fact that IIG’s business model consists of strong company guarantees by IIG’s clients. As a consequence, IIG was forced to increase its own project financing share. In addition, IIG was confronted with the effect of weakening currencies in Central Europe. As early as October 2008, IIG started negotiations towards a significant capital increase and attracting new project financing sources. In Q4 of 2008, IIG implemented a series of cost saving measures, including the departure of 16 staff members at headquarters. Earlier this month, these measures were followed up with a cost saving exercise at IIG’s foreign offices. IIG's repeated requests to its banks to provide sufficient working capital was not heeded. The decision impacts directly on 74 employees and consultants at headquarters and indirectly on 137 employees abroad. The company has several important assets towards potentially interested parties: a strong sales pipeline, a portfolio with several completed or almost completed projects, a business model that works even in times of crisis and a motivated and well qualified work force. All interested parties are invited to contact the liquidator, Mrs Marga Pieters, at marga.pieters@pandora.be