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 IIGs own funds and additional funds, Belgravia invested in IIGs projects in CEE, through project financing and the acquisition of completed projects. Belgravias liquidation had a significant impact on IIGs 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 IIGs business model consists of strong company guarantees by IIGs 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 increas...