"Delta venture on brink of collapse"

Delta wants the construction of a new sports-shopping center in Ljubljana to be put on hold, while the project’s co-investor says it is seeking a new partner. Slovenian magazine Finance writes that the deadline for Delta to pay one of its installments of EUR 19mn, required for the construction of the Stozica center in the outskirts of Ljubljana, expires today. "Delta venture on brink of collapse" Delta boss Miroslav Miskovic has asked for the project to be put on hold until the market stabilizes, the magazine states. Delta has also asked for the project to be adjusted in line with the new circumstances and for the deadlines to be extended. Grep, a Slovenian company formed specially for the Stozica project, offered to reduce the value of the retail part of the center from EUR 232 to EUR 202, a proposal that Delta rejected, adding that it had nothing to do with the construction of the center’s sports section. Grep CEO Uros Ogrin told Finance that the contract with Delta covered the construction of a facility worth EUR 232mn. “That contract isn’t divided up into a sports and retail part, therefore Delta is playing dumb with this split. We made Delta a formal offer to change our contract for the Stozica center on April 3. We said that we were ready to reduce the contractual price of EUR 232mn by EUR 21mn for alterations to the project. We’d do without one underground parking level and compress the facility. We’d cut the price by a further EUR 15mn, which we’d do through a loan that Delta would have to pay back once the economic situation improved,” Ogrin explained. He added that Grep had given Delta until today, April 14, to pay EUR 19mn, which had initially been due at the end of December. Grep has called on Delta to respond to the offer, while Ogrin adds that if the Serbian retail giant pulls out of the deal, Grep will do all it can to find a new investor for the center’s retail section by the end of April, while continuing to build the stadium and sports arena. Finance writes that Ljubljana Mayor Zoran Jankovic did not wish to comment on the situation, pointing out that failure to honor the terms of the contract carries with it a penalty fee of EUR 20mn. Delta has so far paid Grep EUR 5mn. The Slovenians have no banker’s guarantees for the remainder and would have to seek compensation through the Serbian courts. The City of Ljubljana underwrote Grep to the tune of EUR 25mn with the New Ljubljana and Faktor banks, which it will have to pay if the stadium and sports arena are not complete by June 30, 2010, says the magazine. Miroslav Miskovic (FoNet, archive)

"Delta venture on brink of collapse"

Delta boss Miroslav Mišković has asked for the project to be put on hold until the market stabilizes, the magazine states.

Delta has also asked for the project to be adjusted in line with the new circumstances and for the deadlines to be extended.

Grep, a Slovenian company formed specially for the Stožica project, offered to reduce the value of the retail part of the center from EUR 232 to EUR 202, a proposal that Delta rejected, adding that it had nothing to do with the construction of the center’s sports section.

Grep CEO Uroš Ogrin told Finance that the contract with Delta covered the construction of a facility worth EUR 232mn.

“That contract isn’t divided up into a sports and retail part, therefore Delta is playing dumb with this split. We made Delta a formal offer to change our contract for the Stožica center on April 3. We said that we were ready to reduce the contractual price of EUR 232mn by EUR 21mn for alterations to the project. We’d do without one underground parking level and compress the facility. We’d cut the price by a further EUR 15mn, which we’d do through a loan that Delta would have to pay back once the economic situation improved,” Ogrin explained.

He added that Grep had given Delta until today, April 14, to pay EUR 19mn, which had initially been due at the end of December.

Grep has called on Delta to respond to the offer, while Ogrin adds that if the Serbian retail giant pulls out of the deal, Grep will do all it can to find a new investor for the center’s retail section by the end of April, while continuing to build the stadium and sports arena.

Finance writes that Ljubljana Mayor Zoran Janković did not wish to comment on the situation, pointing out that failure to honor the terms of the contract carries with it a penalty fee of EUR 20mn.

Delta has so far paid Grep EUR 5mn. The Slovenians have no banker’s guarantees for the remainder and would have to seek compensation through the Serbian courts.

The City of Ljubljana underwrote Grep to the tune of EUR 25mn with the New Ljubljana and Faktor banks, which it will have to pay if the stadium and sports arena are not complete by June 30, 2010, says the magazine.